How Much to Charge Per Kilometer for Driving a Taxi in South Africa
The South African market for taxis and ride-sharing services is extremely lucrative. In fact, the sector is so attractive that there are a lot of high-end car services that offer chauffeured driving and taxi services at rates that are much higher than what you might expect from a typical auto service. To give you an idea of how lucrative it can be, take note of these statistics: • On average, a South African earns around R 2 600 per month. • As such, the average income per person in the country is approximately R 150 000 per year.
How much should you charge per kilometer for a taxi in South Africa?
One of the first things you’ll want to do when starting out in the taxi service business is to find out how much you should charge for each ride. To do this, you’ll first want to put together a route and assess how much distance it covers. After, you can put together a per-kilometer rate based on how much it covers, and then add on taxes and surcharges to find out how much you should charge per ride. If your per-kilometer rate is low, this could mean you’re not fully charging for the distance covered. If your per-kilometer rate is high, it could mean you’re overcharging and may be losing money at the same time. A good rule of thumb is to charge at least R 10 per kilometer for a taxi in South Africa. R = 10 cents. So, for example, if your route covers 30 kilometers, you would charge R 30 per kilometer.
Find the fare per kilometer based on your route
Now that you know the per-kilometre rate you’ll charge per ride, you can find out what the fare per ride is based on your route. To do this, you can use a service like Google Maps to see just how much distance your route covers and then add on a fare per kilometre to find out what the total fare should be. Next, you’ll add in any additional fees, tax, or surcharges. For example, let’s say you decide to charge R 30 per kilometre, and your route covers 24 kilometres. In this case, the fare per ride is R 24, and the total fare is R 36. This is the total you should charge per ride.
Find the total kilometres of your route to find out the total you should charge
After you’ve calculated the fare per kilometre for each ride, you can find out the total kilometres of your route and the total you should charge to find out your total earnings. To do this, you’ll want to use a service like Google Maps to see how many kilometers your route covers and add them together to find out the total. Next, you’ll want to find out what the average taxi fare in the area is, then add on a surcharge to find out your total earnings. For example, let’s say your route covers 15 kilometers, and the local taxi fare is R 60. In this case, the total you should charge per ride is 15 + R 60, or R 75.
Find the rate per ride and daily rate to charge
Once you have a per-kilometer rate and a total you should charge per ride, you can find out the rate per ride and daily rate to charge. To do this, you’ll want to add together any additional fees, taxes, and surcharges that you might have. For example, let’s say you charge R 75 per ride and want to add on a $3.60 fee for every trip. In this case, the rate per ride is R 75 + ($3.60) = R 77.60.
Conclusion
Now that you know how much to charge per kilometer for a taxi in South Africa, you can work to build up a large taxi business. But before doing so, it’s important to learn about the market and see how much money you can make. So, use the tips above to find out how much you should charge per kilometer for a taxi in South Africa, and you can begin making money right away.
