Planning to start working as a taxi driver on apps? Choosing the right car can be crucial not only for your comfort but also for the profitability of this business.
Should you choose your own vehicle or rent from a fleet partner? Each of these decisions has its own benefits and challenges. Which options are the most cost-effective, and what might surprise you in the long run?
In this article, we will look at all the aspects you should consider to make an informed decision.
Why does the choice of taxi car matter?
If you are thinking about working as a taxi driver, choosing the right car is one of the most important challenges you will face. There are two options: you can drive your own car or decide to rent a car from a fleet partner.
Both options have their pros and cons, which not only affect your daily costs, but also your work comfort, driving strategy and final earnings.
Choosing the right car also affects your comfort and the ability to effectively manage your working time.
For first-time drivers, renting a car may be an easier option, but in the long run, owning your own car may prove to be more cost-effective.
In this article, we will take a closer look at both options to help you make an informed decision.
Working as a taxi driver with your own car – advantages and disadvantages
Owning your own car when you work as a taxi driver offers a lot of independence and potentially higher earnings, but it also comes with some costs and challenges.
Advantages of using your own car:
Full independence – By choosing your own car, you have full control over your schedule. No one dictates your working hours, so you can plan your days yourself. This is an ideal solution if you want to flexibly adjust your work to other commitments.
Better financial structure – When you own a car, you don’t have to pay rental costs, which means that all of your earnings go to you. You don’t have to share your income with a fleet partner or pay a commission on each trip. If you plan on working as a taxi driver for the long term, this financial structure may be more profitable.
Better control over the quality of the vehicle – Driving your own car, you have full control over its technical condition and equipment. You can adjust the car to your needs and preferences, which affects not only your comfort, but also the comfort of passengers, which can in turn increase your rating in applications such as Uber or Bolt.
Disadvantages of owning your own car:
Depreciation and repair costs – Intensive use of a car in work as a taxi driver is associated with rapid wear and tear of the vehicle. The need for regular inspections, repairs and replacement of worn parts is an everyday reality that must be reckoned with. In addition, taxi insurance is more expensive than standard car insurance, which increases fixed costs.
Vehicle condition liability – Owning your own car means that any fault or damage, such as passenger damage to the interior, will be your problem. In the long run, this can be stressful, especially if the car requires frequent repairs, which affects downtime and reduces potential earnings.
Renting a car from a fleet partner – what are the options and their benefits?
Renting a car from a fleet partner is an option that is gaining popularity among taxi drivers, especially those who are just starting their adventure with this job.
Thanks to this solution, you don't have to worry about the costs of buying a car or maintaining it. However, just like with your own car, renting has its advantages and disadvantages.
Advantages of renting a fleet car:
No repair and depreciation costs – When renting a car from a fleet partner, you don’t have to worry about repairs, depreciation or high taxi insurance costs. The fleet partner is responsible for maintaining the car in proper technical condition. If any mechanical problems occur, you are provided with a replacement car, which minimizes downtime.
Less vehicle liability – When renting, you don’t have a strong emotional attachment to the car, which allows for more intensive use. You don’t worry as much about damage, dirt, or other minor incidents that may occur while transporting passengers.
Flexible terms of use – In many cases, you can also use the rented car for private purposes. This is a convenient option, especially for drivers who do not have their own car or want to temporarily test how taxi work works.
Disadvantages of renting a fleet car:
Lower profitability in the long run – Renting a fleet car can be beneficial at first, but with intensive work, the fixed rental fees can exceed the costs of operating your own vehicle. In the long run, your own car, despite the higher initial costs, is more profitable.
Problems with car quality and image – Fleet cars are not always in perfect condition. They can be small, uncomfortable, and sometimes passengers cancel trips when they see a less attractive model of car. Some of these vehicles can also have a negative image on the road due to bad experiences with other drivers or passengers.
Sharing a car with another driver – When renting a car, you may be forced to share the car with other drivers, which complicates your work schedule. This can affect your flexibility and the availability of the vehicle during the most favorable working hours.
Long-term rental - an alternative to your own car and a fleet car
Long-term rental is the third option that can combine the advantages of both your own car and renting from a fleet partner.
This is an increasingly popular solution that offers some flexibility without having to incur all the costs associated with purchasing a vehicle yourself.
Advantages of long-term rental:
No large one-time expense – Unlike buying your own car, long-term rental does not require a one-time expense to buy a car. This means you can avoid having to take out a loan or spend your savings on a new vehicle.
Fixed, predictable costs – Similar to renting from a fleet partner, you pay a fixed monthly fee with a long-term rental. Insurance, maintenance and inspection costs are usually included in the rental price, making it easier to manage your budget.
The opportunity to drive a new car – Long-term rental gives you access to new cars that are in better technical condition than older fleet cars. This means you can drive a modern, comfortable car without worrying about frequent repairs.
Flexible contract terms – Long-term rental allows you to adjust the contract to your needs. You can choose the rental period (from several months to several years), and also decide how many kilometers you plan to drive per year, which affects the amount of the monthly installment.
Disadvantages of long-term rental:
Long-term costs – While long-term rentals can help you avoid large one-time expenses, they can be more expensive in the long run than buying your own car. When you pay for a rental, you never own the vehicle, and you have to return the car or rent a new one at the end of the contract.
Contract restrictions – Long-term rentals have mileage limits that can be driven without additional charges. If you exceed the limit, this may generate additional costs, especially if you use the vehicle intensively as a taxi driver.
Lack of full flexibility – While long-term rental offers more freedom than renting from a fleet partner, it still does not give you the full independence of owning your own car. You have to adapt to the rental conditions and make sure the car is returned to its owner in good condition.
Driving with a Fleet Partner – the Best Choice for Beginner Drivers?
For people who are just starting out as taxi drivers, the model of working with a fleet partner is often the easiest and safest option.
It does not require large financial outlays to start and gives you the opportunity to try out this form of earning money without long-term commitments.
If the work does not meet your expectations, you can easily end the cooperation without major consequences.
This is why the fleet model attracts many novice drivers – it is a way to test their capabilities without having to invest in a car and its maintenance.
Settlements with a fleet partner – how does it work?
When working with a fleet partner, you may encounter two basic payment models:
Model A – Fixed Weekly Fee: In this model, you pay a fixed amount to the fleet partner for renting a car, regardless of the number of trips. This solution is profitable if you drive intensively and regularly. The more trips you make, the greater your earnings, because after paying the rental, all the income goes to you.
Model B – Percentage of Revenue: Here, the fleet partner takes a set percentage of your weekly revenue. This model is more flexible and can be beneficial if you don’t work regularly or are just starting out. If you earn less in a given week, you won’t have to pay a flat fee like you would with Model A.
Plan your schedule wisely when your partner requires it
One of the key aspects of working under a fleet partner is effective scheduling. Some partners require scheduling, which means setting up the days and times you’ll be available to work in advance.
To make the most of your time behind the wheel, it’s a good idea to plan your shifts around peak demand times.
Take advantage of the most demand days – In most cities, taxis are busiest on weekends, Friday evenings and during major events such as concerts or matches. These are the best times to increase your earnings, so it is worth monitoring the calendar of events in your city and predicting when there may be a greater demand for taxi services.
Check the weather forecast – Bad weather, such as rain or snow, increases the demand for taxis. Passengers are more likely to forgo public transport and choose a taxi, which allows for more trips to be completed in a shorter time. When planning your schedule, it is worth considering weather forecasts to increase your efficiency.
Flexibility without a schedule – Some fleet partners offer more freedom and do not require you to set specific working hours in advance. In this case, you can react dynamically and choose the best moments to drive, for example, when you notice increased traffic on the app. It is worth using a “jump” strategy, i.e. taking trips during peak hours to maximize the possibility of higher rates for trips.
Use course selection strategies – increase your profits
When working under a fleet partner, you can use various strategies to increase your earnings, more about this in other articles.
In the case of a flat-rate fee arrangement, the best solution is to operate a large number of trips, especially during peak times, in order to cover the rental costs and generate profits as quickly as possible.
With a commission model, shorter courses can be more profitable because the partner takes a percentage of your earnings, so longer courses may not be worth the time and gas, especially if they end out of town.
The roster-based model - pedal to the metal
In a schedule-based model, your fleet partner not only delivers your car but also covers all fuel costs.
On the one hand, it is convenient because you do not have to worry about the costs associated with refueling, and each route you drive does not generate additional costs for you. On the other hand, this system has its drawbacks that may raise doubts.
In this model, even though you are not formally an employee in the full sense of the word, you are often faced with the responsibilities of typical employment – you have to schedule your work hours, and your flexibility is limited.
This could be described as a "junk employment system" because on the one hand you enjoy the benefits of working as a freelancer, but on the other hand you are subject to strict rules imposed by your partner.
However, with all the disadvantages of this system, there is one big advantage that cannot be ignored: you are not concerned with the depreciation of the vehicle . You do not have to worry about the costs of wear and tear of the car or its possible damage.
You can use the vehicle intensively, focusing solely on keeping the “wheels turning”. The more orders you accept, the better results you achieve. In this model, the key is the number of trips made – full throttle and forward!
Key issues when choosing a car from a fleet partner
When deciding to work as a driver in a fleet model, an important step is choosing the right car.
Remember that the quality of the vehicle, its technical condition and driving comfort have a direct impact on your earnings as well as passenger satisfaction.
Not all fleet vehicles are perfect – there are situations where a rented vehicle may not be up to standard.
Here are some key factors you should consider before renting a car:
Technical condition of the vehicle – safety is the basis!!!
Before you decide to rent a car from a fleet partner, make sure that the car is in full working order. I have seen cases where drivers received cars with "bald tires" or other serious defects, which not only increases the risk of an accident, but can also result in fines and other legal consequences.
Before you start work, make sure that:
The technical condition of the vehicle is adequate – check the tires, brakes and lighting.
The vehicle has current third party liability insurance and technical inspection .
Car servicing is up to date and the vehicle does not require immediate repairs.
Make sure your work tool is in good condition – it will affect the comfort of your ride and the safety of your passengers.
Vehicle Comfort – Bigger Car, Bigger Tips
Not all cars offered by fleet partners will be equally comfortable. Often, small, compact vehicles are rented, which can cause problems for both the driver and passengers.
An example of such a car is the Toyota Yaris or Hyundai i10 , small and uncomfortable in long-term use. Working behind the wheel for long hours in a small car can end with back pain and quick fatigue.
Here are some things to consider:
Vehicle Roominess – Make sure the car is big enough to carry passengers and luggage. Small cars can be problematic, especially when passengers are traveling to the airport or have larger luggage.
Long-Driving Comfort – Driving in a small, claustrophobic car for hours can be tiring, affecting your efficiency and well-being.
Passenger Space – Check how many people you can transport. Some apps require cars that can carry at least 5 passengers (including the driver). A vehicle that is too small can cause cancellations when passengers expect a larger car.
Pay attention to the location of the base
If your fleet partner requires you to pick up and return your car to a specific base every day, check where that base is located.
If it is located far from your home, commuting may be tedious and time-consuming.
This will limit your flexibility in using strategies such as “on the fly” (i.e. immediately joining work at times of increased demand).
Always negotiate rental terms
Before you decide to work with us, it is worth negotiating the rental terms. Here are some things to discuss with your fleet partner:
Does car rental require a certain number of hours of activity in the app or a minimum gross amount to leave?
Can you get a discount on the car payment for a longer rental ?
Are servicing costs, replacement of consumable parts and insurance included in the rental price?
Not all conditions are the same everywhere!
While it might seem like fleet partners offer similar terms, this isn’t always the case. Some companies may offer more modern cars, better service, or more flexible rental terms.
Remember that when working as an Uber or Bolt driver, you spend many hours every day in the car, so the comfort and technical condition of the vehicle are of great importance.
Which car model is the best?
It is also worth remembering that Uber and Bolt have specific requirements for vehicles that can be used to transport passengers.
Vehicles must be manufactured no earlier than 2003 for Uber (in Warsaw since 2005) and no older than 2001 for Bolt. The car should have 4 or 5 doors.
Van/Plus Must be registered for at least 5 people (plus the driver) in the case of Uber, and for Bolt in the XL category should have a minimum of 6 seats.
The vehicle must be in good technical condition, accident-free, and have current insurance and inspection.
Here are some examples of popular models that work well on transport platforms:
Toyota Camry – a popular sedan, spacious and fuel efficient.
Toyota Corolla Kombi – large trunk and comfortable interior, ideal for transporting passengers with luggage.
Dacia Jogger – for drivers who want to transport larger groups of passengers, e.g. in Uber Van / Bolt XL
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