Investing In Taxis

[AjarnJohn]

Hi everyone.

A few months ago on the way back to Don Muang, I got talking to the taxi driver.

On the half hour or so journey, we got talking about the various people he had in his taxi. People who had invested in this and done that etc etc.

He then told me you could make alot of money if you were to invest in a fleet of Bangkok taxis.

Has anyone done this or know of any company/people who do this for a living?

Any info is appreciated.

John

[alexth]

Hi everyone.

A few months ago on the way back to Don Muang, I got talking to the taxi driver.

On the half hour or so journey, we got talking about the various people he had in his taxi. People who had invested in this and done that etc etc.

He then told me you could make alot of money if you were to invest in a fleet of Bangkok taxis.

Has anyone done this or know of any company/people who do this for a living?

Any info is appreciated.

John

It as been discussed before, you should make a search on the old topics. As I see it, it's practically a waste of time, not mentioning getting involved with a lot of weird characters. Most of the taxi companies are owned by highplaced thais or thai mafia. Personally, I would advise you to forget about it.

[percy2]

Hi everyone.

A few months ago on the way back to Don Muang, I got talking to the taxi driver.

On the half hour or so journey, we got talking about the various people he had in his taxi. People who had invested in this and done that etc etc.

He then told me you could make alot of money if you were to invest in a fleet of Bangkok taxis.

Has anyone done this or know of any company/people who do this for a living?

Any info is appreciated.

John

Don't know anybody thats done this.

I would be a little unsure of the investment possibilty knowing that the amount taxis charge has barley risen in about 15? years yet the cost must have at least trebled.

[kenk3z]

If you pursue this idea, please come back and post your vehicle loss rate. And how many days on average the driver returns with the taxi before disappearing forever.

kenk3z

[samran]

my cousins cousin did (if that makes sense!). Lost a bundle.

[Khun Jean]

I asked a taxi driver how much he paid for renting a taxi. He said he paid 520 baht for 12 hours including insurance. It was one of those blue ones, half year old max. Do the math!

[dr_Pat_Pong]

I asked a taxi driver how much he paid for renting a taxi. He said he paid 520 baht for 12 hours including insurance. It was one of those blue ones, half year old max. Do the math!

There's other business prospects. Taxi's for a static investor wouldn't be a goer IMHO.

[soap]

i have read the posts on this topic and can understand their concern about going into the taxi business in bangkok.

but if nobody was making a living out of taxis in bangkok there would be no taxis,so the owner of the taxi who charges rent is making a profit the same as the driver who pays rent.

and the more taxis you have the more money you can make "that is logic"

i had taxis in the uk for many years and i made a living out of renting them out ,i sold my last one about 10 years ago and since then the price of a new hackney cab as gone up in some parts of the uk from 35 grand with LICENCE PLATE to 80 grand WITH LICENCE PLATE.

so even paying more for the licence plate than what you would pay for the taxi, plus insurance,repairs etc people are still buying.

now dont get me wrong i am not advising anybody to buy taxis in bangkok,we all know t.i.t not the uk and if you cant speak thai and you dont know anything about the repair side or the ins and outs of the business then forget about the venture

[samran]

i have read the posts on this topic and can understand their concern about going into the taxi business in bangkok.

but if nobody was making a living out of taxis in bangkok there would be no taxis,so the owner of the taxi who charges rent is making a profit the same as the driver who pays rent.

and the more taxis you have the more money you can make "that is logic"

i had taxis in the uk for many years and i made a living out of renting them out ,i sold my last one about 10 years ago and since then the price of a new hackney cab as gone up in some parts of the uk from 35 grand with LICENCE PLATE to 80 grand WITH LICENCE PLATE.

so even paying more for the licence plate than what you would pay for the taxi, plus insurance,repairs etc people are still buying.

now dont get me wrong i am not advising anybody to buy taxis in bangkok,we all know t.i.t not the uk and if you cant speak thai and you dont know anything about the repair side or the ins and outs of the business then forget about the venture

Big difference here is that there is no regulation restricting the number of cabs. The industry is for all intents and purposes de-regulated. Imagine if they tried to do that in the UK!!

So, is there money to be made? Yeah, maybe. But I don't see how buying a new car, fitting it out, watching it depreciate at a rate of knots, getting bunged up by an up country driver who has no idea how a clutch works and has no guarantee of making the rental for the day is a good market to enter. It is very very competitive, and a bit like opening a beer bar in Thailand, full of people lining up, willing to investing in a loss making industry which gives the appearance of a lively and profitable market place.

The only drivers who I have met and are making a living are owner drivers who take care and maintain their cars, NEVER let anyone else drive them - ie don't rent them out and slog it out 15 to 18 hours per day. And they aren't retiring to the Thai equivalent of the home counties either, like many of the east end owner drivers did.

[tutsiwarrior]

up in rural Suphanburi the only taxis are the motorbike type. I bought an old but well maintained minivan in hopes that a hire arrangement may be possible as well as having transport when in town on a break from work. The brother-in-law (supervised by the wife) that runs the van has only had about 10 fares in a years time...mostly weddings and funerals and etc.

not a good moneymaker in my view...

[soap]

[

Big difference here is that there is no regulation restricting the number of cabs. The industry is for all intents and purposes de-regulated. Imagine if they tried to do that in the UK!!

i think you will find that over 50%of the city councils in the uk have deregulated,whitch means that if you meet the requirements of the city council you will get a free licence.

london is a prime example if you pass the knowledge you will get a licence to ply for hire,

there is no monetary value on the licence

[JimsKnight]

Hi everyone.

A few months ago on the way back to Don Muang, I got talking to the taxi driver.

On the half hour or so journey, we got talking about the various people he had in his taxi. People who had invested in this and done that etc etc.

He then told me you could make alot of money if you were to invest in a fleet of Bangkok taxis.

Has anyone done this or know of any company/people who do this for a living?

Any info is appreciated.

John

It as been discussed before, you should make a search on the old topics. As I see it, it's practically a waste of time, not mentioning getting involved with a lot of weird characters. Most of the taxi companies are owned by highplaced thais or thai mafia. Personally, I would advise you to forget about it.

DONT INVEST!

Pull up a chair and listen...

I invested a bunch in a 'sure fire' deal with a falang/thai minibus / minivan 'company'. I knew the falang personally so I was reasonably certain it would pay off. Chucked in for a second hand minivan, got it converted to LPG, the works. Put it to work. To cut a very long story short the whole company is basically bogus and a sham! www.bbquality.com

Mark it well for its a real piece of work! If you want the falang guys name/company PM me.

The drivers were a problem (mostly family related), a lot of them did not know bangkok, vans were breaking down, the supposed work dried up through the US embassy. After the drivers monthly salary (7500-8000 baht) the fuel and breakdown/maintenance costs were sorted there was a steady loss. The 'Manager' who at first I believed didn't have a clue how to run a successful business as his pricing up for jobs was totally outlandish. I later learned he was taking a double cut on top of the commision charged. On top of this a lot of the customers were ex-army buddies who he'd pass off the van journeys as favours. The 'Manager' also was shall we say, prone to psycotic out bursts and paranoia which really started the rot setting in! Definately one of those wierd, crazy charaters you get from time to time.

The drivers salary eats into the profit margin. Your trusting a practical stranger to drive around an expensive investment, and your not even allowed to drive your investment yourself as its 'working'!

If you want to try and get in on the Victory Monument minibus pick-up/drop-off BKK to Hua Hin deal its 250K baht to the taxi mafia for the right!

So no don't invest, save your cash. There are a zillion people out there ready to screw you for your money with supposed 'investment wonders'!

[soap]

!!

So, is there money to be made? Yeah, maybe. But I don't see how buying a new car, fitting it out, watching it depreciate at a rate of knots, getting bunged up by an up country driver who has no idea how a clutch works and has no guarantee of making the rental for the day is a good market to enter. It is very very competitive, and a bit like opening a beer bar in Thailand, full of people lining up, willing to investing in a loss making industry which gives the appearance of a lively and profitable market place.

The only drivers who I have met and are making a living are owner drivers who take care and maintain their cars, NEVER let anyone else drive them - ie don't rent them out and slog it out 15 to 18 hours per day. And they aren't retiring to the Thai equivalent of the home counties either, like many of the east end owner drivers did.

ps

the principle of renting taxis or cars out all over the world is the same,thats why the likes of avis,buget etc make a profit even after depreciation.

at least if you get a up country driver in bangkok he will be able to understand 90%of his customers by speaking thai.

not the same in the uk mate,i read a article in a taxi mag a couple of months ago,one city council i think it was bradford (not sure) had received many complaints that the drivers could not speak english, so on the test form the council put a question and answer section in the test,

the driver had to tick the box with what he thought was the right answer, there were 5 questions but i only remember one,but the 4 other questions were on the same par.

if the customer asked you

will you take a blind dog? would your answer be

a) only on a sunday

yes of course

c) put it in the boot

the failure rate was about 85%

i rented taxis out for over 30 years, now i am retired enjoying the l o s. a few of my friend s who are still renting taxis out are millionaires.

all i am doing is putting the other side of the story forward.

if i was 20 years younger,lived in bankok (i dont) could speak thai (i cant) knew the ins and outs of repairs etc.

THEN AND ONLY THEN i would take a look at the bankok taxi game

[soap]

if the customer asked you

will you take a blind dog? would your answer be

a) only on a sunday

yes of course

c) put it in the boot

the failure rate was about 85%

before the jokes start read

will you take a blind GUIDE dog

sorry

[Chang_paarp]

Further to Soap's comments about speaking the language. I was driving cabs in Brisbane Au when they introduced language tests for the cab licence.

My licence was up for renewal a wek after the tests were supposed to be introduced. I filled in the form and had a new photo taken. They were in the process of laminating my licence when I asked about the language test I read in the newspaper. The reply was;

"You just passed"

The local language skills of cab drivers is a challenge across the world as it can be an entry level job for immigrants (legal and otherwise).

Having looked at the cab industry in BKK, I would leave it to those who have the connections to get cars and repairs at the right price. Just as a driver you would have trouble earning a local living. As an owner driveryou could do a little better, just.

[Heng]

A lot of the old school companies have the synergy benefits of already owning auto garages, body shops, wholesale/retail tire shops, etc. Not to mentioned that they likely own (100% equity) the property they use as their taxi bases so they don't wake up in the red every day.

[dr_Pat_Pong]

Further to Soap's comments about speaking the language. I was driving cabs in Brisbane Au when they introduced language tests for the cab licence.

My licence was up for renewal a wek after the tests were supposed to be introduced. I filled in the form and had a new photo taken. They were in the process of laminating my licence when I asked about the language test I read in the newspaper. The reply was;

"You just passed"

The local language skills of cab drivers is a challenge across the world as it can be an entry level job for immigrants (legal and otherwise).

Having looked at the cab industry in BKK, I would leave it to those who have the connections to get cars and repairs at the right price. Just as a driver you would have trouble earning a local living. As an owner driveryou could do a little better, just.

Australian pragmatism at work