Taxi roll-up
- Posted by Sara on October 25th, 2006 filed in Transportation
Opportunity: offering services for taxi companies
An earlier post detailed opportunities for using technology in order to provide a more reliable taxi service. Of course, this would have to be supported by other basic features, such as driver training and testing, reliable driving (taxi drivers are notorious for giving unsuspecting passengers adventure rides).
The main barrier to this type of business is the limited number of taxi licenses the local administration gives out. At this point, Bucharest has 9500 taxi licenses. No additional ones can be provided, and the current licenses expire in 2009. There is a waiting list for redistributing licenses that are withdrawn, but the wait is long and hopeless.
However, new legislation will force companies to replace all taxicabs older than three years with new, air-conditioned cars with safety features. This will impose a heavy burden on companies using old locally-manufactured Dacia cars. People who entered the taxicab business because it promised a quick profit will think twice about making this sizeable investment.
This opens a ripe opportunity for rolling up several small taxi companies, replacing the cars with the latest hybrid cars, equipping them with GPS technology, and quickly gaining an important position on the market.
Written by Sara
Leave a Comment