How to become a private taxi driver

Written by pamela gardapee
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Becoming a private taxi driver requires having the proper credentials, licenses, insurance and a dependable car. Driving a taxi in the bigger cities makes it hard to compete with corporations, but driving a private taxi in smaller cities that only have one or two corporations can be quite profitable. You do need to have the right frame of mind to run a private taxi, and good customer service skills are essential.

Skill level:
Moderately Easy


  1. 1

    Buy a car that will be dependable and will only be used for taxi service. The car should be free of rust, and the interior should be in good condition. Look for a car that is large enough to accommodate baggage or groceries, yet affordable enough to run if the gas prices are high.

  2. 2

    Apply for private taxi insurance. Be prepared to pay upfront for the cost of a year's insurance. Every state is different, but you might need as much as a million dollars in coverage. This depends on the area you will drive in with the private taxi.

  3. 3

    Apply for the taxi license after you have acquired insurance. You need to show proof of insurance when applying for a private taxi license. This license will be for a business and different from an operational license that drivers carry.

  4. 4

    Set your prices and adjust them as you go. Do not start your prices high, but make sure they will cover your time, gas and insurance costs.

Tips and warnings

  • Buy a car that has fewer miles so it will last a long time with proper maintenance
  • Never carry large sums of money in your taxi.

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