We are proud to be integrated with

How to Start a Private Hire Business: The Complete Guide

June 2026

How to Start a Private Hire Business: The Complete Guide

Private hire is the model most modern taxi firms use: every journey is pre-booked through a licensed operator. Here is how to start a private hire business the right way.

1. Understand private hire

Unlike a hackney carriage, a private hire vehicle can't be hailed in the street or use ranks — it must be booked through you, the operator. That makes your booking and record-keeping system central to the business. See private hire vs hackney carriage.

2. Get your three licences

You'll need an operator licence, plus licensed drivers and vehicles. Read how to get a private hire operator licence. Expect background and DBS checks and vehicle inspections.

3. Set up compliant record-keeping

Licensing authorities require detailed booking records — who booked, when, which driver and vehicle. Dispatch software keeps these automatically and tracks driver/vehicle document expiry, so audits are painless. See the best software for private hire operators.

4. Build your fleet and team

Decide on owned vehicles vs owner-drivers, get the right insurance, and recruit reliable drivers. Give them a good driver app and fair dispatch to keep them.

5. Take bookings and dispatch automatically

Modern private hire runs on cloud dispatch software: online and app bookings, automatic driver allocation, live tracking, cashless payments and account billing. Use our ROI calculator to estimate the time and money it saves.

6. Win accounts and customers

Private hire profits compound through account customers — hotels, businesses, schools and contracts. Offer account billing and reliable service, launch a branded booking app, and invest in local SEO.

Ready to get started? Book a free demo of TBMS and run a compliant, modern private hire firm from day one.

Confirm exact requirements with your licensing authority, as rules vary by area.

Ready to Transform Your Taxi Business?

Start your free trial today — no credit card required.

Start Free Trial Contact Us
Book a Demo