Owner-Operated local taxi
Run your own licensed cab in your town or city, taking bookings by phone, app and street hails.
- C$15k-50k
- Part-time
- Out and about
- Licence or permit needed
Estimates for a small start in Canada, not guarantees.
What it is
You own or finance a licensed taxi and drive it yourself, picking up fares in your local area. You can work on your own or join a dispatch company for bookings, and you choose your hours within local rules.
Your first three steps
- Contact your municipality or taxi licensing office to ask how owner and driver licences or plates are issued, whether plates are issued by the city or bought from an existing owner, and what each option costs
- Price out a suitable vehicle, taxi insurance and a meter, and compare dispatch companies' fees against taking your own bookings
- Set up a simple record of income, fuel and expenses, and register your business name and Business Number once you are ready to start
Who pays
Local residents, older people, airport and station travellers, hotel guests, people leaving bars and restaurants, and medical or social service clients.
How it makes money
Metered fares set by your municipality, plus any approved fixed rates for airports or regular trips. Income depends on hours, location and how many bookings you win.
Skills that help
- Safe, confident driving
- Good local knowledge
- Friendly, reliable customer service
- Basic bookkeeping
Watch out for
- The startup cost estimate covers base costs only: a suitable used or financed vehicle, taxi equipment such as a meter and roof light, initial insurance payments, inspections and licence fees. It does not include buying a taxi plate
- Many cities cap the number of taxi plates, so plates can be scarce. Where plates are traded between owners, prices can be very high and vary widely by city, and can far exceed the base costs. Where the city issues plates directly, fees are usually much lower. Confirm availability and price before buying a vehicle
- Commercial taxi insurance is much more expensive than personal car insurance. Get quotes early
- Check licensing rules for drivers, such as background checks, medical forms, a driver's licence class and local taxi training
- Vehicle age, inspection and meter rules differ by municipality, so verify them locally
- Winter driving, fuel prices and quiet periods can strongly affect income
- Taxi and limousine drivers must generally register for and charge GST/HST from their first fare, with no small supplier exemption. Confirm your obligations with the Canada Revenue Agency (CRA)
Deep research report · Canada
Everything you need to start: owner-operated local taxi
Researched with live web search for Canada: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.
- Startup costs with real prices
- Licences, registration and rules
- Pricing: what others charge
- Break-even example
- Finding your first customers
- 30-day launch plan
- Risks and how to reduce them
Questions people ask
How much does it cost to start a taxi business in Canada?
Base startup costs are typically estimated at around $15,000 to $50,000, covering a vehicle, taxi equipment, initial insurance, inspections and licence fees. This does not include buying a taxi plate, which can cost far more where plates are traded.
How much can an owner-operator taxi driver earn?
Monthly revenue is typically estimated at around $3,000 to $12,000, depending on your hours, local demand, the season and fuel prices. Winter driving and quiet periods can strongly affect income.
What licences and rules should I check before driving a taxi?
Check taxi plate availability and price in your city, driver licensing such as background checks, medical forms and licence class, and local vehicle age, inspection and meter rules. Also get commercial taxi insurance quotes early and confirm GST/HST obligations with the Canada Revenue Agency.
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