Taxi Business In Uganda

 

Starting a taxi business in Uganda can be profitable because transport is in high demand, especially in Kampala, Wakiso, Entebbe, and other growing towns. However, success depends on choosing the right model, following legal requirements, and managing operations effectively. Here’s a detailed guide:

🚖 Types of Taxi Businesses in Uganda

  1. Traditional Matatu-style Taxis (Minibuses)
  • Commonly 14-seater Toyota Hiace (locally called “Taxi”).
  • Operate on fixed routes with stage-to-stage passengers.
  1. Private Hire Taxis
  • Cars (Toyota Premio, Wish, Spacio, etc.) used for pick-and-drop services.
  • Often stationed at hotels, malls, or taxi parks.
  1. E-hailing (Ride-hailing Apps)
  • Bolt, Uber, and SafeBoda (car option) are growing in Uganda.
  • Opportunity to launch your own ride-hailing app or join existing platforms.
  1. Specialized Taxi Services
  • Airport transfers (Entebbe International Airport).
  • Corporate staff transport.
  • Tourism & safaris.

✅ Steps to Start a Taxi Business in Uganda

1. Market Research

  • Identify demand areas (Kampala suburbs, Entebbe, Mukono, Jinja, Gulu).
  • Decide on your target customers (commuters, corporate staff, tourists, airport travelers).
  • Study competitors (matatus, boda bodas, Uber/Bolt).

2. Choose Your Model

  • Route Taxi (Hiace) → Best for high daily passenger volume.
  • Private Hire/Corporate → Higher fares, lower daily frequency.
  • E-hailing → Flexible but commission-based if using existing apps.

3. Acquire Vehicles

  • Popular cars: Toyota Premio, Spacio, Wish, Noah, Alphard.
  • For minibuses: Toyota Hiace.
  • Consider second-hand imports from Japan for cost savings.

4. Licensing & Legal Requirements

  • Register business with URSB (Uganda Registration Services Bureau).
  • Get operating license from Kampala Capital City Authority (KCCA) or respective municipality.
  • Vehicle must have:
  • Roadworthy certificate (from SGS/UNRA).
  • PSV (Public Service Vehicle) license.
  • Insurance (Comprehensive or Third-party).
  • Drivers must have a PSV driving permit.

5. Recruit Drivers

  • Hire experienced, licensed drivers with good customer service.
  • Option: operate yourself to save costs.

6. Pricing & Earnings

  • Route taxis charge UGX 1,000–3,000 per stage.
  • Private hire/Uber/Bolt charge based on distance & time.
  • Airport transfers: UGX 80,000–150,000 per trip.

7. Operations & Management

  • Daily revenue collection (many owners use a “driver remit system” where drivers pay fixed daily rent).
  • Fuel management (drivers may misuse funds if not monitored).
  • Vehicle maintenance (spare parts are widely available for Toyota cars).

8. Marketing

  • Register your cars on Uber, Bolt, SafeBoda for instant customers.
  • Partner with hotels, tour companies, corporate offices.
  • Build WhatsApp customer groups for regular bookings.

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