Airport Taxi Business Plan


Airport Taxi Business Plan


Premier Airport Transportation Service (PATS), a Cleveland-based airport transport service, is available. PATS offers limousine-like services without the usual high limousine prices. PATS cars aren’t true stretch limousines but they are luxury late model vehicles. Sam Brougham (a transportation industry veteran) is the lead of Premier Airport Transportation. PATS forecasts healthy sales for the third year.


The Market and Services Offered

Four limousine service providers and four taxi companies are available in Cleveland. In addition to these transportation options, Cleveland also has short and long-term airport parking and a rapid transit public train system providing airport service. Premier Airport Transportation Service is a middle ground between the average taxi service or the expensive limousine service. PATS’s middle price will make it attractive for both business travelers and families. This service is a cost-effective, convenient alternative to driving to and parking at the airport. Premier Airport Transportation will be a good choice for business travelers. They don’t need to spend as much on travel but prefer a more luxurious option than taxis. These two market segments grow on average at 8.5% per annum and there are more potential customers.


Competitive Edge

PATS knows that providing exceptional customer service will be their key to success. Premier has offered financial incentives to drivers in return for exceptional service. This will ensure superior customer service at every level and with all interactions with the company.


Management Team

Sam Brougham founded Premier Airport Transportation Service. Sam began his transportation career as a taxi driver, a source of income to put Sam through school. Sam then worked as a logistics officer at Yellow Freight Company. Sam was then promoted to Yellow’#8217’s Customer Service department. He eventually assumed managerial responsibility for Yellow&#8217’s Customer Care Call Center. Sam’#8217 will bring a wealth of customer service and logistics expertise to PATS. Premier will be able to operate more efficiently thanks to their logistics skills, while the customer service experience will enhance their competitive edge.

Premier Airport Transportation will fill the unmet need of Cleveland for a high-quality, reasonably priced airport transportation service. PATS will break even in the eighth month and double their sales by year three. PATS will experience a loss in year one but will make a nice net profit in year three.

1.1 Objectives

The following objectives are set for the initial three years of operation

  1. To create a service-oriented company with the primary goal of exceeding customer’s expectations.
  2. Superior performance and word of mouth referrals will increase customer numbers by 20% annually
  3. To establish a sustainable transportation business that serves the Cleveland Metropolitan Area

1.2 Mission

Premier Airport Transportation Service’s Mission is to provide the best airport service. We are here to retain and attract customers. All else will fall into place if we follow this maxim. Our services will exceed our customers’ expectations.


Taxi Business Plan


Taxi Business Plan


City Taxi, a San Francisco-based company, is committed to providing reliable, prompt, and safe taxi services. It does this by offering in-car credit and debit access along with computer-aided dispatch. The company will expand its market presence by purchasing Mighty Cab, an established taxi cab association that was founded 12 years ago.

City Taxi will offer complete taxi cab services, using the most up-to-date equipment and technology. Products and services from City Taxi show that they are innovative, forward-thinking companies that can adapt to customer changing needs. City Taxi’s philosophy emphasizes customer service and recognizes that communication is key to our success. In a competitive world, professionalism and flexibility are key to maintaining a leading edge.

The drivers and employees of City Taxi are courteous and helpful and have been trained in using the computer dispatch system. Drivers and passengers are both protected by City Taxi cabs fitted with Global Positioning Systems, which allow them to be tracked and found in an emergency. All City Taxi cabs will be clean, well maintained, and inspected regularly for safety and comfort.

Our strategy is to establish our business as an alternative to taxi cab services by building reputation and market share. The company’s goal in the next year is pursue an aggressive marketing campaign and from that, penetrate at least 65% of the market share. The company’s long term goal is to become the number one ground transportation company San Francisco.

The company’s emphasis is on the dispatch, mobile data, and credit/debit card markets of the taxi industry. These markets, taken together, are estimated to be worth more than $119million as of March 1999. City Taxi will be focusing on the most lucrative credit card/debit-card segment in these markets. While this segment has been introduced slowly to certain areas, it has experienced a rapid increase in popularity over the three years. It has increased by 20 percent in Maryland and Virginia each year, and 25-35% in New York each.

City Taxi competes against Transportation, Inc., Capital Cab, Yellow Cab, Diamond Cab, as well as other companies. Their weaknesses include the inability to accept credit/debit cards and the fact that some still use the radio dispatch system. Our technology is unique in San Francisco, which gives the company an advantage. By using GPS, the company will be able to provide timely service and give an estimated time-of-arrival (ETA). The credit/debit card feature will give customers convenience and privacy during the transaction period.

Reliable communications in this business are vital under any circumstances. City Taxi will be using the KDT5000 system. KDT 5000 system design ensures communications will remain reliable under all conditions. Rockwell International, which will create a state-ofthe-art call center, will run the company’s communications system.

The company seeks $2.5 Million of financing to help fund the acquisition of Mighty Cab Association as well as its initial operations. This financing will be used to purchase Mighty Cab, market, buy additional vehicles, software, hardware, and marketing. The 1999-2001 revenue projections are $200,000, $1.5 Million, and $2.2 Million, respectively.

1.1 Objectives

The company’s goal is to launch an aggressive marketing campaign over the next year and then penetrate at least 65% of the market. The company’s goal for the next two to five year is to become the most highly rated ground transport company in San Francisco Metro Area. It will do this by constantly monitoring, evaluating, following up on customer calls.

These are key components of City Taxi&#8217’s original strategy.

Establish a relationship with Rockwell International. Rockwell International is currently establishing and developing a working relationship. City Taxi can now lock in the many services they offer, including but certainly not limited to:

  • Managerial

  • Call center and customer service efficiency

  • Management consulting

  • Technology consulting

  • Product management

  • Continuous improvement

1.2 Mission

City Taxi’s mission is to provide safe, reliable and timely cab service by making use of in-car credit/debit cards access along with computer-aided dispatch.

1.3 Highlights

Highlights of City Taxi


  • Technology

    . City Taxi has a unique Global Positioning System (GPS) that pinpoints the nearest driver, thus allowing the driver to give an accurate ETA.


  • Credit/debit card system

    . This system, which is unique in San Francisco, allows for instant approval. The swipe machine is located in back of the car, giving passengers privacy.


  • Trademarks

    . The company is currently in the process to register the name Patriot as trademark.


  • Advertising

    . City Taxi is already in advanced discussions with TCI Media Services to provide advertising services and market research.


  • Seasoned Management

    . Management is highly qualified and has extensive industry experience.


  • Strategic relationships

    . The company has, and will continue to establish, relationships with organizations that will enhance professional growth. These alliances are valuable to City Taxi because they allow us to get updates on technology, added tech support, and a strong presence in the market.

  • Exclusive rights for software. City Taxi is the only company that has access to the most recent taxi cab software for San Francisco.

Limousine Taxi Business Plan


Limousine Taxi Business Plan


San Francisco Limo is a limousine firm that provides high quality limousine transportation services for San Francisco and Burlingame. We use late model limousine sedans. John Smith, David Jones and the sole owners of the company have established it as a California corporation. San Francisco Limo will make $52,000 in net profits by the third year.

The Market

The transportation/limousine in San Francisco is quite competitive. Airport transportation as well weddings, prom nights, and “nights on the town” are quite competitive and margins have eroded. San Francisco Limo is able to serve these niches and reduce downtime while building a loyal base. San Francisco Limo will primarily focus on elderly transportation, private school students transport, and sightseeing trips. These niches have higher margins and are less price sensitive. There are 10 private schools in the area with 3,502 students. There are 26 B&Bs and 44 hotel/motels available for sight-seeing. The area also has 19 retirement and assisted living facilities. These three markets each have a 5% growth rate and potential customers of 1,816; 2,700; and 2,000 respectively. San Francisco Limo will service the Burlingame as well San Jose market, just like it did earlier. While it is common knowledge that there is a large amount of money flowing through the city to a large degree from the boom of the Internet age, Burlingame is also quite affluent. Burlingame surrounds 14 communities. With 3,632 households with incomes exceeding $150,000, this demographic is likely to use limousines.

The Business Model

San Francisco Limo will launch it at a moderate rate. It currently operates three sedans. To save costs, the office operates from home. The vehicles are stored in a garage rented by the company. Because office space is scarce in this area, the home-based model will be used as long as possible without sacrificing custom service.

Currently, the industry average for revenue per vehicle is $4,614 with San Francisco Limo only generating $2,500. San Francisco Limo has to significantly increase this number in order to continue growing and remaining profitable. The low market average revenue is due to a small customer base, and participation in niche markets. As the market becomes more competitive, both the customer base as well as penetration will grow and revenue per vehicle should increase dramatically.

Management Team

The company must fully utilize the knowledge and experience of John and David as their managers to achieve success. John is a veteran of the transportation industry for eight years. John was a limousine driver for the first three-years. For the next five years he was elevated to manager of a 12 car limo fleet. John gained the vast majority of his industry experience and insight over this five-year period. While David is an equally seasoned manager, his background is in logistics for a shipping company. David spent nine years working in Airborne Express’ logistics department. This experience was vital in David&#8217s management skills development and gave David the confidence to launch his own business.

San Francisco Limo will continue to grow at a steady pace, with both principals doing their best and doing just a little of everything. In year one, revenue is expected at $92,000. This will increase to $225,000 by year 3. By year three, net profits will reach $52,000. This represents 22.94% of sales. In the sixth month, profitability will be attained.

1.1 Objectives

This business plan has the objective to increase monthly revenue per vehicle from the current $2,500 to $6.250 by the end 2001. This figure will be 35% more than the national average of $4,614, which is the median for limousines in the Northern California Region.

This will be achieved by:

  1. Decreasing the company’s reliance on competitive airport transfer type business.

  2. Increased penetration of lucrative markets close to your home base

  3. Keep the CATA contract’s highest-profitable part, but find another use for it.

1.2 Mission

San Francisco Limo’s mission is to be the premier hourly hire sedan service in a 10-mile radius from Burlingame. We hope to serve a repeat clientele who demand–and can afford–reliable, secure service from drivers with detailed knowledge of the area.

1.3 Keys for Success

  • Fleet vehicles must be replaced often to eliminate downtime as well as to maintain an image consistent with the company’s mission statement.

  • You are key to fostering repeat customers by having excellent telephone skills.

  • Especially true for limousine companies with small fleets, the most import key to success is finding a repeat clientele willing to hire car and driver for a minimum of two hours. While the airport transfer business is booming and there appears to be enough for everyone, it is important to find segments of the market that complement this business during hours when airport transfers are slow. It will also be beneficial to find market segments that are brand loyal (less price-sensitive) which result in longer fares of a less-hectic nature.