Niche markets for private hire drivers
A few niche markets for private hire drivers are minibus services, wheelchair-accessible transportation and corporate accounts. Niche markets include transport services for large groups, children, the physically immobile, tourists, food and parcels.
If you are wondering why some private hire vehicle drivers are excelling while your business seems stagnant, it may be time to switch gears and move into a more niche market to expand your income stream.
By opting for different private hire vehicles (PHVs) and marketing your particular service to specialised niches, your taxi business could go beyond everyday hackney carriage. In this guide, we’ll explore various sectors within the private hire industry that could be profitable.
Minibus transport
Minibus hire can be used in a variety of niche markets. Apart from the obvious group transport, vehicles with a larger passenger capacity can be used in the following markets:
Tour guide
Many tourists prefer a more personalised travel experience and want the reliability of on-call transport during their visits.
If you market yourself as a tour guide/taxi driver, you will need adequate knowledge of the area where you operate. Alternatively, a dedicated tour guide could ride in the passenger seat while you focus on the road.
Pros
- Can be extremely profitable in major cities.
- Tourists are more likely to tip well.
- More interactive than a standard taxi ride.
- As a tourist-focused market, you could charge above the standard taxi fares.
Cons
- May not be suited to lesser-known areas.
- Drivers may be required to wait around while tourists explore venues.
- A larger vehicle means higher fuel consumption.
- Possibility of a language barrier.
Airport shuttles
Families and large groups travelling to and from the airport require a larger vehicle with ample boot space. While many companies are dedicated to this market, fares are quite high and often aimed at tourists. If you can build a solid reputation in this niche and offer competitive prices, airport shuttling could be a lucrative venture for private hire drivers.
Pros
- International clients.
- Higher fares can be charged.
Cons
- Higher fuel consumption.
- Strict time constraints.
- Parking fees.
School drop-off and pick-up
Schoolchildren are often too young to use public transport or travel unsupervised. That’s why many parents use transport services dedicated to the pick-up and drop-off of their little ones.
Given the nature of this job, the application process is quite thorough and drivers will need to obtain licensing from the local authorities. The education authorities in your sector will have their own home-to-school transport contracts which outline the regulations for the driver and vehicle.
Pros
- Drivers will have school times free during the day.
- There is a wide need for this service.
- Can be a very rewarding and entertaining market.
- You don’t need to work on weekends and holidays.
- No late-night shifts.
Cons
- Taxi services are likely not required during school holidays so you may experience significant lulls in income.
- Travel times are usually during peak traffic hours.
- Children are prone to rowdiness.
- Vehicle maintenance for the interior may be extensive if you are transporting younger children who are more likely to mess.
- Younger passengers may require a booster seat. According to government rules for child car seats, a child may ride in a private hire vehicle without a car seat but must be seated in the back of the vehicle. Appropriate safety measures must be taken regarding seatbelts and car seats.
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Get QuotesPhysical disability transport service
Unfortunately, not every form of public transportation in the UK is accessible to those with wheelchairs, except for London black cabs. Those who rely on walkers, wheelchairs, and crutches may require a bit more space and assistance from taxi drivers.
For this niche, your vehicle doesn’t necessarily need to be bigger. Many passengers may just require assistance in and out of their wheelchairs, with space in the boot for storage during transit. Drivers could speak to local authorities in their area about contracts for regular work in this market.
Pros
- Drivers are providing an invaluable service.
- Highly rewarding.
- Can be a lucrative market.
- Councils offer tender contracts, meaning regular work for drivers.
- You may have a service dog on board.
Cons
- May require specialist training or certification if the job is taken through a specialist company.
- Requires more strenuous physical activity and patience.
- Dedicated drivers in this sector may require vehicle modifications or specialist vehicles for transport.
Luxury transport for events
If you have access to a high-end car, this niche is for you. Events such as weddings and other formal functions are a great market for private hire drivers, especially when there isn’t parking at the venue or the event involves alcohol.
In this case, people attending formal events may opt for luxury vehicle transport.
Pros
- Due to the high level of service expected from this type of work, drivers can charge higher rates.
- Drivers could meet interesting or well-known people.
- Drivers have the opportunity to drive luxury vehicles.
- Can build a dedicated clientele.
Cons
- Vehicles will need to be in excellent condition at all times, meaning more upkeep.
- You will have to wear professional formal attire.
- Pick-ups from such events may have drivers dealing with inebriated customers.
- Friday and Saturday nights will almost always be busy.
- Late shift work.
Courier services
Private hire drivers in the UK are not just limited to transporting people. A taxi driver can easily switch between picking up and dropping off people to courier parcels or food, also known as gig driving. If this is something you would like to do, be sure to amend your private hire taxi insurance accordingly to include the transportation of food and goods.
This usually falls under the hire and reward insurance category, but can easily be included in private hire insurance for licensed taxis.
Pros
- You can take a break from interacting with people while still earning an income.
- This can be done in between other private hire services.
Cons
- It can be lonely.
- Taxi fares are usually lower.
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Non-emergency healthcare transport
Private hire drivers can provide a safe environment for people requiring transport to and from medical appointments and procedures. These services can be arranged in advance or used instead of an ambulance for patients without urgent, life-threatening ailments.
In Scotland, many private hire taxis were provisioned for this amid the NHS ambulance crisis.
Those in rural areas could provide a much-needed service with this niche.
Pros
- Highly rewarding and provides a needed service.
- Can be a highly sought-after service in specific areas, such as those far from medical facilities.
Cons
- Could be stressful.
- May be exposed to contagious illnesses.
- Requires more care and interaction than a standard taxi service.
Dedicated corporate transport
People in the corporate industry have a certain image to uphold when conducting business, including business-related travel.
Private hire vehicles and drivers targeting this market must meet certain requirements. The taxi driver and car should be neat, presentable, and somewhat corporate-looking.
Pros
- Can be as lucrative as luxury car hire.
- More flexible in terms of vehicle type.
- This may include profitable trips to airports, hotels, and conferences.
- If marketed correctly, companies may contract drivers.
Cons
- Late shifts are likely.
- A taxi driver in this niche will need to be flexible with their schedule as meetings may run late.
Gender-specific transport
If you are a female taxi driver, this one’s for you. Many women prefer to be driven by a person of the same gender as it provides an added level of security and peace of mind. According to a survey on female travel statistics, one of the top four risks that female solo travellers worry about is taxi scams (62% of women consider this before travelling).
Taxi services provided exclusively to women can reap great benefits and be marketed to international female tourists, too.
Pros
- Female travellers have added assurance.
- Can be marketed to overseas travellers.
Cons
- Female drivers may be targeted by criminals.
- Providing transport exclusively for women may be viewed as discriminatory.
9 Tips for entering niche markets
No matter which market you enter, there are several things that all private hire drivers can do to ensure their niche taxi business thrives:
- Offer discounts or specials: Drivers could offer off-peak rates or discounts to students and pensioners. This is a great way to attract new clients if you are just starting out.
- Do proper market research: Researching your niche is important as some may require specific permits or certifications.
- Contact your local authority about business opportunities: If you plan to transport children or people with disabilities, it is worth speaking to your local council.
- Keep up with vehicle maintenance: Whether you are in the niche market or not, this is something all taxi drivers are required to do to ensure their clients’ safety.
- Devise a suitable business plan: Starting your own private hire taxi business can seem daunting, but having a proper business strategy with projections for income and expenditure will ensure your business’s success.
- Market your taxi business: Marketing is a crucial aspect of running your own taxi business. If you find it’s not your strong suit, consider hiring a marketing agent. Private hire drivers can claim marketing costs as a business expense.
- Select an appropriate private hire vehicle: Career drivers may want to consider keeping their private car for personal use. Hiring or leasing a private hire vehicle best suited to your market will ensure you have the correct car for your services. You might be interested in our Best Cars For Private Hire Taxis article.
- Provide excellent customer service: Your reputation as a reliable and good taxi driver will secure loyal customers and positive reviews.
- Find out how to get cheaper taxi insurance: Use SimplyQuote to find and compare the best deals.
Final thoughts
Taking your private hire taxi business into a niche territory is a viable option for many drivers. As with any business venture, you must have all your bases covered. At SimplyQuote, we provide drivers with a solid foundation when it comes to private hire insurance and other taxi business matters.
Frequently Asked Questions
Yes, licensed taxi drivers are covered for hire and reward. This means that the insurance policy provides cover for the transportation of passengers, goods, and food. Private hire taxi insurance is sometimes referred to as hire and reward.
For drivers that have been contracted by a school or authority, there may be restrictions prohibiting them from acting as a standard taxi during off-peak hours. However, there is nothing prohibiting private hire drivers from switching between niches if no contract is in place. Just be sure that no prior bookings are compromised.
If you have been issued with a taxi licence despite prior convictions, certain niche industries may not be an issue. However, services that involve children, disabled persons, or contracts with corporations may not hire those with a criminal record.
You will need to inform your insurance company if:
- Any changes have been made to the vehicle to accommodate this niche.
- A new vehicle is being used.
- Parking for the vehicle has changed.
These changes may result in amendments to your insurance policy.