09-01-2025
The urban population is increasing the number of daily commuters in cities of the UK. The number of private and registered vehicles increased by 90% in the United Kingdom. 95000 taxis are operating in London alone, out of 250,000 taxis in England. From the above insights, it is clear that the UK is the best place for taxi startups. People these days are moving towards convenient modes of transportation even for daily commuting. Increased safety and security features support the growth of the taxi market. Taxi business entrepreneurs can invest in UK cities like London, Manchester, Birmingham, Liverpool, Bristol, Edinburgh, Glasgow, Leeds, Sheffield, and Newcastle. This article will help you learn why these 10 UK cities are the best choice for starting your cab services.
Table of Contents
Why Starting a Taxi Business in the United Kingdom is the Right Choice?
How to Launch a Taxi/Cab Service Business in the UK Cities?
Top 10 Cities to Start a Cab Business in the UK
Benefits of Starting a Ride-hailing Business in the United Kingdom
Conclusion
Technology has touched every industry; the taxi business is no exception. Before starting a business, you need to address the pain points of it. Your service should be unique and should stand out from the competitors. When demand exceeds supply, your service should be efficient enough to serve the market. The product or service offered by you should be competitive in terms of quality and price.
The insights that are discussed earlier might have shown you that the taxi business gives you much profit in the UK. To achieve success, one should be careful in using the resources in an efficient way. In UK the public transportation fails to satisfy the growing demand so people started moving towards private taxis. Europe has 450,000 taxis and tops the other taxi markets around the world. Technological advancements have made the industry grow faster than ever before.
The profitability of a taxi business in the UK can fluctuate greatly based on various factors, such as geographical location, market demand, business model, and the overall efficiency of operations. For instance, taxi drivers operating in metropolitan areas with high demand, like London, may see significantly higher earnings compared to those in rural settings where demand is lower.
On average, taxi drivers can generate gross revenue ranging from £25,000 to £52,000 per year. (Source: Simply Quote Comparison Ltd's Insights) However, this figure represents the total income before any expenses are subtracted. To determine actual earnings, one must consider net profit, which is calculated by deducting operational costs—including fuel expenses, vehicle maintenance, insurance, licensing fees, and income tax—from the gross revenue. The net profit provides a clearer picture of the financial health of a taxi business and reflects the true income available to drivers after essential expenses are accounted for. Understanding these nuances is crucial for anyone looking to enter or evaluate the taxi industry in the UK.
Are you on your way to making money? If so, get your business running smoothly and efficiently in a short span. This section will give you a clear understanding of how to start a cab service in the United Kingdom.
Business type of size will depend on the market you choose. By knowing the competitors, you can easily choose the area with high demand and know where to operate. This shows that the existing businesses help in making informed decisions. Therefore, you will know your operating region using the competitors.
Having a clear business plan will guide you through the entire process of establishing your business. Have a business model that gives structure to your ride-hailing business. Determine the number of vehicles, type of vehicles, and drivers based on your operating region.
Once you have initiated your taxi business successfully the next step is to check the legal procedures of the system. The must-have documents including licenses and other legal guidelines that need to be completed are added here.
Once the business is registered then the necessary documents for commercial use should be registered. Vehicles should be frequently checked in different parts to ensure correctness.
Obtaining a license is a legal requirement and requires more attention. This will help in earning trust and make customers safe at any point of the journey. This is an important and legal requirement that needs to be taken care of while starting a taxi business.
A taxi app plays an important role in connecting a rider with the drivers. Cloud-based dispatch software will monitor and streamline the entire process from a single panel. The features of the app should be designed in such a way that it should satisfy all the business requirements.
You might be interested in UK's Top 10 Ride-Hailing and Taxi Booking Apps in 2025
A larger taxi company will need huge capital when compared to the smaller ones. Before making an investment let us understand the areas which are good for investment. Let us discuss briefly why these 10 UK cities are the best choice of investment for starting a taxi business.
1. London
One of the most densely populated cities in the UK is London. The transportation nerve of the city includes trains, buses, taxis, and undergrounds. Iconic Black Cabs is the popular mode of transportation in London. This cab is available through every knock and corner of the city.
Black cabs are a reliable and secure mode of transportation in the city. Rigorous training is undergone by the drivers to obtain the license. Uber and Bolt are other modes of ride-sharing services that are dominating the city. Residents and tourists avail of these services through taxi booking apps. As the city is loaded with daily commuters and tourists it is a great option for cab service business investors.
2. Manchester
The northern city with rich history and cultural attractions is Manchester. Black cabs and hire vehicles revolve around the city of Breeze. The key advantage of using cabs in the city is that they take passengers with disabilities too. They have ramps for the specially-abled people and help them to go around the city.
In addition, luxury transportation like chauffeur-driven cars and limousine cab services is also available. The target audience of the city includes travelers, professionals attending events, and tourists.
3. Birmingham
One of the largest and most popular cities in the UK is Birmingham. Black cabs and private vehicles are widely used modes of transportation in the city. Uber and Ola are the other transportation options in Birmingham.
Offering affordable services in Birmingham will help business owners to stand out in the competition. The city has many tourist spots, and it is large and popular which makes it the best place for taxi market entrepreneurs.
4. Liverpool
The city is known for its rich history, vibrant culture, and sporting heritage. Both locals and tourists rely on cab services for transportation. The market is dominated by licensed taxis, private vehicles, and black cabs. Additionally, there are luxury transportation options available, such as chauffeur-driven cars and limousines. Many people now prefer using ride-hailing apps over traditional online booking systems. With the right cab dispatch software, you can achieve profitability. Furthermore, most taxi companies offer local delivery options as part of their services, providing an extra feature for your on-demand taxi or ride-hailing service.
The drivers of the city are friendly and offer affordable services. The city is open to welcoming reliable and convenient modes of transportation services. Tourists as well as locals are the great targets in this UK region.
5. Bristol
This southwest city is famous for street art, music, and cultural attractions. Private hire vehicles and black cabs are the most used transportation options in the city. In Bristol, it is possible to hire chauffeur-driven cars and limousines. The city already offers affordable options for long and short-travel passengers.
Tourists as well as locals of the city are expecting an eco-friendly mode of transport. Along with friendly and professional drivers if you launch a sustainable transportation option you will be able to achieve success in the business.
6. Edinburgh
Popular transportation in Edinburgh includes licensed private hire vehicles and black cabs. Luxury Chauffeur services are also available around the city.
Your potential audience could be tourists, people attending events, and locals. If you are offering comfortable and efficient travel service then Edinburgh could be the best investment option.
7. Glasgow
Architecture and culture are the notable attractions of the city. The most popular transportation options are Black cabs, Licensed vehicles, and private hire vehicles. App-based ride-hailing services are offered by Uber and Bolt in the city. Affordable as well as luxury transport are seen in Glasgow.
You can use your taxi services to attract tourists as the city is loaded with architectural wonders and offers efficient travel options.
8. Leeds
The industrial heritage and thriving nightlife of this northern city attract huge tourists to it. As it is known for its nightlife the city has day and night cab services.
You can attract professionals, tourists, and people attending events. It is also possible to offer airport services in the city.
9. Sheffield
The city is well-known for world-class universities, industries, and stunning natural surroundings. As the city is environmentally sustainable the cab services use electric cars and offer airport transfers, student travel, and event travelers.
If you are able to attract students, airport travelers, and event passengers then you will be able to achieve success in your taxi business. For this, you just need a perfect plan and Uber and Bolt like taxi booking app for cab booking Furthermore, you can offer environment-friendly modes of transport.
10. Newcastle
With friendly locals, thriving nightlife, and extraordinary architecture Newcastle falls into the northeast of England. Black cabs and licensed private vehicles are mostly used by the people. The city also offers safe and comfortable transport options for persons with mobility issues and disabled passengers.
Taxi entrepreneurs can target people with special abilities and offer affordable services to them. As the drivers are well experienced, they can offer extraordinary service to every knock and corner of the city.
Starting a cab service in the UK is beneficial because it has flexible work hours, you can own your business, barriers for entry are comparatively less, demand for services always exists, you can earn a high profit, and can expand customers as it is densely populated and acquire local knowledge. Let’s discuss the above-mentioned benefits in detail.
Flexibility
The working hours can be flexible that is you can offer service whenever it fits your schedule and free from other commitments.
Self-Employed
The cab services in the UK can be offered if you have a single vehicle or a fleet.
Steady Demand
As discussed above the taxi service is available in most areas of the UK so it acts as a constant source of income.
Market Potential
The rich cultural heritage and the huge number of tourist attractions in the UK make it a great market for taxi investors.
Low Startup Cost
If you have a cab of your own then starting a taxi in the UK is less expensive when compared to other businesses.
Customer Interaction
Regular event customers, tourists, professionals, and locals could act as your potential source of income and could offer worth-of-mouth marketing to others.
Niche-Opportunities
As the drivers are aware of local routes, the nightlife of cities and airport transfers allow the business owners to offer niche-based services.
Potential for Growth
Adding Delivery, partnering with businesses, and offering luxury transport could be a great opportunity for those who are looking for growth.
So, what do you think? Is it good to do cab business investment in the UK or not? After reading this article you might have concluded that it is the best option to do in the first place. Choosing the right location will help you to achieve success and profit. In addition, you can introduce ride-sharing options to thrive in the market. Before starting your cab service don’t forget to choose the right technology partner like UnicoTaxi to thrive and leverage in your taxi business.
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