Start a small local taxi and private hire firm
Run a booking office for a town or village, taking calls and app bookings and sending them to a handful of drivers.
- £4k-20k
- Full-time
- Own premises
- Licence or permit needed
Estimates for a small start in the UK, not guarantees.
Official data
19,909 UK companies in this field, 37% registered in the last 2 years
SIC 49320 “Taxi operation”. Source: Companies House, November 2026.
What it is
You set up a licensed private hire operator that takes bookings by phone, app or website and dispatches them to licensed drivers. You might drive some jobs yourself while you build up the business and a regular customer base.
Your first three steps
- Check your council's private hire operator licence requirements, including premises, record keeping and any local conditions
- Choose a booking and dispatch system and price it against the number of drivers you expect to use
- Talk to local licensed drivers and potential regular clients such as care homes, pubs and businesses to test demand before you commit
Who pays
Local residents, pubs and restaurants, care homes, schools, businesses and visitors who want a reliable local firm.
How it makes money
Fares from each booking, with the firm usually taking a weekly fee or commission from self-employed drivers, or keeping the fare if the drivers work for you. Contract work such as school or care runs can bring steadier income.
Skills that help
- Organising bookings and drivers
- Customer service by phone and online
- Basic bookkeeping
- Managing and keeping reliable drivers
Watch out for
- An operator licence is normally needed and your drivers and vehicles must be licensed by the same council, so check which rules apply
- Insurance for the firm, plus checks that every driver has proper hire and reward cover
- Employment status: check whether drivers are genuinely self-employed or count as workers, and get advice if unsure
- Keeping accurate booking records and handling complaints, lost property and safeguarding
- Competition from big apps and established local firms, and long unsociable hours at first
Deep research report · UK
Everything you need to start: small local taxi and private hire firm
Researched with live web search for United Kingdom: 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 firm in the UK?
Startup costs are typically around £4,000 to £20,000, depending on your premises, booking system, insurance and how many vehicles or drivers you set up. These are estimates, so get quotes for your own area before committing.
Do I need a licence to run a private hire taxi firm?
An operator licence is normally needed, and your drivers and vehicles must be licensed by the same council, so check which rules apply locally. Also check your insurance, including that every driver has proper hire and reward cover.
How much can a small taxi firm earn?
Monthly revenue is typically around £3,000 to £15,000, depending on how many drivers you dispatch, how busy your area is and the hours you cover. Expect to put in at least about 30 hours a week to begin with.
Other ways to run this business
Private hire driver with your own car
Drive pre-booked passengers in your own licensed car, taking jobs from apps, local firms and regular clients.
- £1k-6k
- Side hustle
- Out and about
Licensed taxi driver working ranks and hails
Own and drive a licensed taxi that can be hailed on the street, picked up at ranks and booked in advance.
- £3k-25k
- Part-time
- Out and about
Similar transport ideas
Small pay-and-display car park
Lease or use a spare plot near shops, a station or a busy street and charge drivers by the hour or day.
- £3k-20k
- Part-time
- Own premises
Small-unit storage and fulfilment service
Rent a small unit, store goods for local businesses and pack and send their orders.
- £3k-20k
- Part-time
- Own premises
Small motorcycle hire fleet with online booking
Start with two to four bikes kept at home or a lock-up, taking bookings online and handing over by appointment.
- £6k-20k
- Side hustle
- From home
Made-to-measure boat cover workshop
Make fitted covers for boats stored on land, from a small unit or workshop near a marina or boatyard.
- £4k-18k
- Part-time
- Own premises
Side hustle car hire with a few cars
Start small by renting out one to three cars through hire platforms or local bookings, handing over near home.
- £4k-18k
- Side hustle
- From home
Executive car hire: owner-driver
Drive your own smart car for airport runs, events and business clients, building regular bookings.
- £3k-15k
- Part-time
- Out and about
Photo: ChardiKalaTravel on Pixabay