Advice on becoming a Private Hire Driver (Airport runs etc)

alex92

Hello Guys,

I'm 21 years old and hoping to start up as a sole trader doing private hire driving (mainly airport transfers etc). I am currently working self-employed doing security work (I'm working security at the upcoming V and Leeds festivals for example).

I am already doing regular airports (and similar) runs for friends and family in my everyday car (Seat Leon) and have been doing so on an unpaid basis for a number of years (only charging for petrol money but making no profit). I get asked quite often as I work strange hours, so friends & family know I'm usually available and always willing to help if I can.

It was suggested to me a few months back that I start up a business doing exactly this, but with a suitable vehicle and charging 'real' rates. I didn't give it much thought at the time as I simply don't have the money to go out and buy a new vehicle and I assume the costs of doing this full time are astronomical etc

Last night I received another call from my sister-in-law asking if I would pick her and her friends up from Birmingham at 1am if they paid petrol money. (I do not drink so I often receive calls to this effect)

On the way home one of them said the exact same thing, that I should do this for a living, but this time I gave it some more thought. My car is worth approx £14,000. I know a family member is tentatively selling their silver 2007 Mercedes Viano 8 seater for around £9000 and I could more than likely get a very good deal on it.

I have spent most of the day today trying to research how I would go about doing this legitimately. I understand that I need to get a Small PHC licence which is approx £1600 as well as a CRB check etc. Both of these don't seem to be a problem, however I have pretty much hit a brick wall when it comes to insurance.

I am 21, been driving for 5 years with a full, clean licence, however I can't even get a company to quote me full stop on a PHC basis, let alone having expensive quotes.

Can anyone offer any advice or help on this? (or my idea in general)

Is it impossible and/or a waste of time even trying to do this before I'm 25? (Which seems to be the entry level for PCH insurance)

Does anyone have any advice or suggestions? Most forums I have already read with similar questions on this topic seem to give the general response of "too much work, don't bother" or "you won't make enough money with just one vehicle, you need a £30,000 loan and a fleet...."

Any help would be greatly appriciated guys

Thanks in Advance!

Babbawah

You seem to be doing alright so far apart from the insewerance, maybe 25yr old is the benchmark for private hire inswerance but on the basis that my taxi driver of choice is only 23ish it can't be.

Have you visited and sat own with a broker?

I appreciate that the internets has killed off the High St broker but they do still exist for business insewerance. I reckon if you sat own with a specialist business broker then you'd likely come across a suitable policy.

Good luck.


P.S. My taxi driver of choice is moving into stag and hen party weekends. He picks 'em all up on Friday then spends the weekend as the sober/sensible one with the minibus.

Very rewarding, very lucrative apparently. Much more so than mini cabbing.

alex92

Thanks very much for the reply,

I haven't actually sat down with a broker although I have spoken to a few of them, most of them quickly lost interest through when I said I was 21 looking to do PCH

I did get told last night that I could get covered 3rd Party only for £6000/pa and that the following year the premium would 'probably' come down a little...

Your taxi driver being 23 is encouraging though, although it might be a different ball game for an employee joining an existing taxi company but I will look into it!

Thanks again!

InsideInsurance

Young driver in a vehicle with a lot of seats and no NCD for this class of insurance is always going to be high insurance costs but even more so for private hire which always are much higher costs than a personal car.

You may find more traction by going to a brokers, other than swintons, and seeing them face to face. Remember though that this is commercial insurance and unlike personal lines its not as automated/ straight through and can mean phonecalls and waiting for insurers to rate. SME business is improving though.

DKLS

The guy I use for airport runs started as a one man band, he bought a S class merc for under 10k, slapped a private plate on and markets his service as "exclusive and premium airport transfers". Within a couple of years he took on 6 more drivers with similar type cars, all used Jags, Mercs and BMWs.

I used him last night, and he has signed up for Uber which was great as I could use my £20 off voucher, he advised that he is getting a lot of work via uber from people who want something better than a minicab smelling of vomit.

SailorSam

To get a private hire badge you need to go into the Licenceing Dept of your local Council. I drove a Black Cab and i know some of the young lads that came into the game had insurance premiums like telephone numbers..
Where did you get the £1600 figure from, the Council aren't going to charge you anything like that for a private hire badge.

QuackQuackOops

It isn't just insuring the car, it's insuring the car as a business, which will be astronomical at your age.

You then have other insurances to consider on top of the car insurance, where you live is a factor for the cost of license, the age of car allowed, whether or not you have to have home inspection if you choose to run your business from it...Cost of replacing the vehicle when it bites the dust, repairs, maintenance, your wages, advertising, staff if you have any and on it goes.

Being a 21 year old one man private hire firm today, will be tough going and not likely to earn you much at all.