Taxi franchises - no city can do without it!

This segment of the Russian franchising market is characterized by a high level of demand from market participants. Interest in the taxi franchise is due to the variety of offers coming from both domestic and foreign franchisors.

Fruitful work in compliance with the terms of the franchise allows you to reach a stable level of profit in a short period of time. All projects presented on the Russian market operate in accordance with both international and domestic standards.

Briefly about Yandex Taxi

Yandex.Taxi is a large taxi company that has been operating in the Russian Federation since 2011. The service offers ordering a vehicle using a mobile application. Carries out up to 50% of passenger transportation in Moscow. You can use the company's services in the regions.

The service is presented in 128 Russian cities and neighboring countries. Transportation is carried out by 200,000 vehicles. The company's market share in 2020 was 10.4%. Orders are accepted only online, through a special application for smartphones and tablets.

Is it possible to become an individual entrepreneur with a personal car?

“Is it possible to become a Yandex Taxi partner if you own a car?” - this is the question that many drivers ask in search of a permanent income.

Of course, this is possible. However, it is necessary to meet the requirements set by the company for applicants. At the same time, it is best to register your own individual entrepreneur by obtaining a license for passenger transportation. By the way, running a private business will solve the issue of official employment.

If any questions or difficult situations arise when obtaining a license, then Rosgostaxi or another similar organization will help solve them. Specialists will advise and assist in obtaining documents.

Often such companies offer to purchase a special package of services from them, which includes: obtaining a license, preparing documents giving the right to operate as an individual entrepreneur, connecting to Yandex Taxi.

Franchise Description

To minimize risks, first familiarize yourself with the business model, conditions, advantages and disadvantages.

Contents of the franchise package

The partnership agreement stipulates:

• providing the taxi company with the required software;
• monitoring the technical condition and appearance of transport using the Taxometer program;
• test trips with franchisor specialists monitoring the quality of services provided;
• 24-hour technical support, redirecting incoming calls to a single call center.

Advantages and disadvantages

The advantages of franchising are:

• reduction in advertising costs for services;
• reduction of vehicle idle mileage;
• increase in the number of clients up to 15-20%;
• assistance in obtaining licenses for taxi drivers;
• access to other Yandex services;
• the possibility of cashless payments between passengers and the driver;
• assistance in organizing business processes and providing training;
• high business profitability;
• lack of responsibility for software development and price regulation (the company assumes these responsibilities).

The Yandex Taxi franchise will help you find customers and create fair prices.
There are also disadvantages:

• the franchisee must fully comply with Yandex requirements;
• you need to pay a high lump-sum fee and royalties;
• The reputation of an enterprise depends entirely on Yandex.

Project profitability

Expenses will only be required to purchase a franchise and set up the work process. The expenses will pay off in 3-12 months. It depends on the number of cars in the fleet, the costs of organizing a business, and the size of the city. The larger the settlement, the higher the income an entrepreneur can receive.

Profit will be stable. Yandex is characterized by low seasonality, due to which the number of orders does not depend on the time of year.

Cost including expenses

The cost of purchasing a franchise depends on the locality. At the same time, the entrepreneur gets the opportunity not to pay for advertising, software, utilities, Internet, or rent of premises.

The cost of a franchise starts from 1800 rubles per day.

The lump-sum contribution varies from 50,000 to 300,000 rubles. For the regions, the minimum investment amount is 2 million, and for Moscow - 5 million. You will have to spend at least 100,000 rubles on arranging a location for washing, parking, inspection and repair of vehicles.

In addition, you will have to pay royalties monthly. The entrepreneur is obliged to provide for the current costs of organizing the work process.

Franchising Pioneers

In 2014-2015, it began to develop rapidly in Khabarovsk and Vladivostok, with more and more middle- and premium-class cars appearing on the roads. Valiev was attracted by the mobile application and the fact that the company was on everyone’s lips. In small towns they knew that this taxi's drivers arrived quickly and the service was relatively inexpensive.

Drivers in Vanino, the first city in which the franchisee launched a taxi, were pleased with the new format of work through a mobile application and a distributed call center in Kurgan. Before this, taxi drivers and dispatchers worked differently: one or two dispatchers in the city had to independently call each driver.

The very first franchising agreement in Russia was concluded with Valiev, and it was this that formed the basis of the working conditions with subsequent franchisees. Valiev says that the most common fear of potential franchisees is that as soon as they advertise, their contract will be terminated and the company will be taken away from them.

Over three years, working conditions changed twice, including a significant reduction in the amount of royalties. Valiev himself proposed some changes - for example, previously each call to the operator was paid regardless of whether the order was completed, and an additional commission was taken for each order. Now for an order worth 100 rubles. a commission of 3% is taken and an additional 5 rubles are paid. for the call.

In each of the cities it was necessary to invest approximately 400,000 - 500,000 rubles. Main cost items:

• buying a franchise;
• ordering advertising (approximately 80,000 rubles);
• ordering business cards and banners;
• additional costs for advertising.

All these costs are spread over 5-8 months.

Taxi franchisees' earnings are greatly influenced by the cost of gasoline. When prices rise, the cost of the average check increases, and with it the fixed commission. For example, previously an order cost 100 rubles. with a commission of 10 rubles, now 120 rubles. with a commission of 12 rubles. Even without taking into account the increase in gasoline prices in 2020, the entrepreneur’s earnings exceeded the forecast by 2-2.5 times.

The management company takes a maximum of 30% of the revenue as soon as the revenue reaches 130,000 rubles. An additional 5 rubles is paid. for every incoming call from a client.

Drivers receive 90% of the revenue; for other aggregators, the commission can be 20-25%. Valiev believes that at Maxim it is most effective to take orders in quantity with a low commission.

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More information about the promotion

Terms of business purchase

To purchase a franchise, you must meet a number of criteria. The entrepreneur is prohibited from canceling the free waiting service. Drivers are required to undergo regular medical examinations. The partner company must provide the telephone number of each of them to Yandex.

Requirements for franchisees

To buy a franchise, you must:

1. Have the status of a legal entity or individual entrepreneur. The applicant must have a valid license and experience running his own business.
2. Enter into an agreement with the aggregator.
3. Have at least 20 cars in your taxi fleet. It is better if the number of vehicles is 50-100 units.
4. Comply with the prices established by Yandex and do not increase the cost of the service without permission. If the price turns out to be too high, the company will terminate the contract with the entrepreneur without the possibility of re-concluding or cooperation in the future.

What should the park be like?

The requirements also apply to the taxi fleet:

1. Cars must be manufactured abroad. Only vehicles with the steering wheel on the left side are allowed.
2. All cars must have 4 doors.
3. You must have an MTPL policy.
4. Vehicles must be in full working order. A well-groomed appearance is required. Damage and major defects are not allowed.
5. You will have to regularly clean the interior of your car.
6. Car stickers are strictly prohibited.
7. The car should have Russian license plates.

After acquiring a franchise, taxi companies acquire the opportunity to provide passenger transportation services.
There are restrictions on the year of manufacture of the car. The exact values ​​depend on the machine model. If the vehicle is fully functional and in good condition, but was assembled earlier than the established year, it will be required to undergo stationary quality control. If all tests are passed, the aggregator will allow the machine to operate.

Training from Yandex Taxi

After acquiring a franchise, an entrepreneur must regularly monitor the work of employees. At the same time, Yandex provides:

• local market analysis;
• recommendations for adjusting the financial plan, programs for starting your own business;
• free consultations on purchasing, selecting, and registering vehicles;
• Software and training on how to use it.

Uncharted Territories

In small towns, Valiev faced an unexpected problem - the entire taxi business in them was controlled by people from the 90s who considered this market theirs. Local “authorities” beat and set fire to cars and intimidated drivers, threatening them if they worked for a Maxim taxi. In one city, competitors burned or damaged nine drivers' cars. According to Valiev, this situation is more typical for small cities with a population of up to 500,000 people, and the only way to solve it is to negotiate directly with the locals.

These people are subtle psychologists who have lived through more than one crisis in their lives, and their business is still afloat, so there is no universal recipe for interacting with them, says Valiev. “You need to pull yourself together and talk to them directly, because they also have their own fears and needs. You need to learn to negotiate.

Each city in which an entrepreneur opened required a new market analysis and a different approach to sales. “The cities are 40 km away, but drivers seem to think differently,” says Valiev. “You tell them it’s profitable, they say it’s unprofitable.” We have to come up with a new strategy for the development of the city from scratch, and only after a year and a half do the first results appear.”

Trial and error often requires strategy revision. Valiev decided to enter the second city with prices 20% below the market, got a driver strike and lost all his clients. They tried to convince the drivers and promote the business for three months, but nothing came of it. Six months later we started again: we revised prices, changed the phone number because the old one had a bad reputation, and gradually built up demand.

Unfortunately, not all people correctly assess their strengths when buying a franchise, says Svetlana Shilkova, a specialist in the Maxim taxi business development department. “Some people think that you just need to sign an agreement and pay a lump sum fee, and then the money will flow into your pocket. This is not so, the development of our taxi ordering service in the city is daily work with mandatory investments. Someone becomes our client, planning to combine this activity with their main place of work, without having assistants or their own employees. This is extremely difficult; you need to devote a lot of time to advertising, collecting information about competitors and tariffs, communicating with clients and drivers, solving service problems using the AIST automated workstation.

In 2020, the franchisee left the Khabarovsk Territory for Primorsky and began to develop a new city 1000 km from the original ones. The last points where the franchise launched in 2020 were small satellite cities with a population of 15 thousand and 8 thousand people. It was easiest to develop taxis in a smaller city, because everyone already knew that in the larger neighboring city everyone used Maxim taxis.

In each city, the franchisee faced new problems - in one, radio advertising and billboards did not work, in another they had to carefully announce themselves - hand out business cards, post advertisements so as not to anger competitors, in each city - call competitors and re-formulate the tariff . In some places the minimum order costs 80 rubles, in others 100 – this is influenced by competitors’ prices.

Previously, an entrepreneur moved to a new city for one or two months, but now he works remotely. According to Valiev, the market in small cities still lacks a major player. In a village with a population of 4 thousand people, there can only be one taxi operator, but even if there are ten of them, they cannot necessarily cope. If operators' capacity is limited, customers are forced to wait for both the call and the car itself.

In such a city, you can launch with confidence, because the car can be delivered faster, and the cost of the service can be reduced by 10% due to cost optimization,” says Valiev. - So demand will increase.

The problem of the Far East for Valiev is the very small number of free small towns. Recently, an entrepreneur launched a franchise in Dalnegorsk only because the previous franchisee had very poor results.

The ideal city for work, according to Valiev, is with a population of 20,000-50,000 people. It does not require large investments, but provides a good prospect for profit. “In the west, the urban agglomeration is ideal, people can quickly travel to villages and neighboring cities, but in our country there are few cities and they are far from each other, for example, between Vanino and Spassk-Dalniy - 1000 km,” says Valiev.

Seven facts about the Maxim taxi franchise

1. Today you can become a partner of the service in 11 countries.
2. In total, more than 400 franchise units have been opened.
3. In 2020, the first agreement with the franchisee was signed.
4. The franchisee receives exclusive rights to the city and connects to the Assistant office. Office specialists monitor the quality of order fulfillment and answer user questions.
5. Lump sum contribution for cities up to 20,000 people - 50,000 rubles, from 20,000 - 100,000 rubles. Total investments - up to 300,000 rubles.
6. Royalty - 0%. Maximum 30% and 5 rubles. for each call to the contact center after reaching revenue of 130,000 rubles.
7. The payback period depends on the size of the city and the work of the franchisee and can vary from 3 months to 1.5 years.

Franchisor support

Yandex provides support to each of its partners. The company provides a full set of necessary software, including an application for smartphones and tablets, and training courses. The partner is consulted on any issues related to the organization of the enterprise.

They help a person form a client base, attract new clients, and obtain a license. Legal services and assistance in selecting workers are also provided. There is constant technical support, which you can contact in case of any difficulties with organizing work processes.

The franchise concept consists of financial models for the franchisor.

Benefits of buying a taxi franchise

The company's engineers will connect the telephony system and set up the workplace, achieving a connection to the server.

An original unique software package is provided, which is periodically updated. The franchisee gets access to the company website and SMS server.

There are different types of franchise businesses. One of them is an auto parts franchise.

Legal and accounting support is provided on favorable terms.

Franchise acquisition algorithm

First, the applicant will have to register a legal entity and open an individual entrepreneur. This step is skipped if the procedure was carried out in advance. Then they look for an accountant and a lawyer. Then investments are made. The entrepreneur and the aggregator enter into an agreement. The new partner will have to undergo training from the company. When the course is completed, they look for a suitable office space and prepare a parking lot where cars will be located. You can set up outsourced processes. Then you will be able to do without renting a room.

Cars are registered taking into account the requirements of Yandex. Afterwards the taxi license is registered. When it is received, personnel are selected: dispatchers, drivers. You can search for suitable people using Avito, Raboty.ru and other similar services.

To become a Yandex Taxi partner, you must prepare a certificate of registration of a legal entity, documents confirming tax registration, and a license to operate. Documentation must be provided for each vehicle in the fleet. If cars are rented, drivers will have to issue powers of attorney. In addition, the entrepreneur is required to provide his passport.

Features of working under a franchise

Having decided to open a taxi service as a franchise, an aspiring entrepreneur must take into account the features of such a cooperation scheme.

A positive aspect is considered to be gaining access to proprietary software that allows you to quickly find free taxi cars and determine the location on the map. You will need to invest in the following business sectors:

• navigation system;
• software equipment;
• the sphere of organizational structuring;
• production area.

Business will be conducted using well-established technology. The franchisee will receive full support in the field of management, personnel training, marketing and advertising throughout the entire period of cooperation. Patented programs that promote effective performance are provided free of charge. Costs are minimized since the partner will use the services of the franchisor’s Call Center.

The platform is hosted on the service representative's server, and configuration is performed by the company's engineers.

Taxi franchise leaders of 2020

Based on the scale of coverage, popularity of taxi franchises, experience and profitability, business analysts classify franchisors in the Russian and foreign markets, compiling appropriate catalogs. Let's take a closer look at the TOP 3 profitable offers.

Yandex.Taxi

The project, based on the Uber principle, is rapidly conquering the Russian private taxi market, combining the conditions of foreign and local taxi services and complementing them with a technological dispatch solution. Date of foundation: 2011. Start of franchise sales: 2011. Franchising volume: more than 15,000 drivers. Lump sum payment: 70,000 rubles. Advertising fee: none. Royalty: none. Amount to start the project: from 450 thousand rubles. Payback: 4 months. Profit per month: 100 thousand rubles. Geography: Russia. Franchisor's website

Learn more about the franchisor in the video.

Taxi "Maxim"

Fifteen years of experience of Maxim taxi in independent business and fourteen years of franchising experience guarantee a high level of thoughtfulness of the business scheme. The project covers five countries in Europe and Asia. Date of foundation: 2003. Start of franchise sales: 2004. Lump sum contribution: 100 thousand rubles. Advertising fee: none. Royalty: 5%. Costs to start the project: from 50 thousand rubles. Payback: 5 months. Profit per month: 50 thousand rubles. Room size: 10 m2. Geography: Russia, Ukraine, Georgia, Kazakhstan, Bulgaria Franchisor’s website Telephone. Learn more about the franchisor in the video.

"Lots of taxis"

Quick payback and minimal investment in starting a taxi franchise make the offer unprecedented. “A lot of taxis” is an affordable option to fill the niche of private cab service with an investment of 60 thousand rubles + the cost of renting a 24 m2 premises. Date of foundation: 2010. Start of franchise sales: 2020. Franchising volume: 3 franchisees, 30 own companies. Lump sum payment: 50 thousand rubles. Advertising fee: none. Royalty: none. Costs to start the project: from 10 thousand rubles. Payback: 3 months. Profit per month: 30 thousand rubles. Minimum area: 24 m2. Geography: Russia. Franchisor's website Telephone. How to use the “Many Taxi” program is described in the video.

About other franchise market leaders in videos.

Taxis aimed at business class clients differ in many ways. Elite services can be either an independent business or part of a widespread system. More details in the video.

Programs with different levels of costs and profits offered by franchisors provide a choice for franchise buyers with a starting amount of 76-80 thousand rubles.

How to become a partner of the Yandex.Food service?

The company invites restaurants and cafes to cooperate. To join the service, you need to fill out a form located at https://yandex.ru/promo/yandex.eda/inbound. The owner of the food outlet must provide the following information:

1. Name;
2. Contact number;
3. Email;
4. Restaurant name;
5. City;
6. Address;
7. Official website (if it doesn’t exist, then a link to a page on social networks);
8. Number of restaurants;
9. Availability of our own delivery service;
10. If necessary, comment.

At the end, you must agree to the processing of personal data.

Google Ads

You will be redirected to the advertiser's website.

If the offer is relevant, Yandex managers will contact the owner themselves.

Partner Application

A mobile application has been developed for partner restaurants of the Yandex.Food service. It allows you to quickly manage incoming requests - process them and transfer them to delivery providers, contact support and view the history of completed transactions.

However, many users note that the application consumes a lot of battery power, which reduces ease of use. The developers regularly update the program, so you should hope that this defect will be corrected.

Only existing partners of the service can use the application. To authorize, you must provide a login and password, which participating restaurants receive by email from Yandex representatives.

Google Ads

You will be redirected to the advertiser's website.

Changes in the taxi market with the advent of franchises

Russian government analysts have noticed a 20+% increase in the number of private cab drivers over the past decade due to the spread of taxi franchises. At the same time, the market volume grew by 85%. At the same time, dispatching programs were launched. As a result, calling a taxi has become easier for passengers, and accepting orders has become easier for taxi drivers. The streamlined scheme made it possible to serve more customers, reduced vehicle and driver downtime, resulting in an increase in daily revenue. Positive changes are noted by both users and taxi service employees. The system of operation of a modern taxi is described in the video.

10 years ago, the taxi business required its own fleet of vehicles, a staff of dispatchers, drivers, auto mechanics and marketers. Expenses were reflected in the cost of services, and a hired car cost the average customer a price tag at the limit of affordability (relative to the average level of earnings). Waiting times were also excessive and passengers needed to know service numbers to order. The introduction of taxi and app franchises has solved most of the problems.

Conclusion

Private transportation services have existed since transport appeared, but over the past 10 years, the Russian market has undergone major changes in terms of technical equipment, organizational principles and globalization. A taxi franchise allows representatives of small and medium-sized businesses to join the updated reality with maximum benefit. Beginners open their own franchise business with minimal risks and costs and quickly pay for themselves - within 3-5 months. A taxi franchise is an offer that is beneficial to all participants in the process: the parent company, franchisees, and clients. However, there are shortcomings in the system, and knowledge about them is useful if you plan to buy a taxi franchise.