How to Start a Taxi Business in Cape Verde: A Complete Guide

Cape Verde, an island nation off the coast of West Africa, is a growing tourist destination with a strong demand for transportation services. Whether you're a local entrepreneur or an investor, starting a taxi business in Cape Verde can be a profitable venture. The country’s booming tourism industry, coupled with the need for reliable transport among residents, makes this business an excellent opportunity.

Launching a taxi business in Cape Verde is a promising venture, especially with the country’s thriving tourism industry and growing transport needs. By following the steps outlined in registering your business, choosing the right vehicles, hiring skilled drivers, setting competitive prices, and marketing effectively you can build a successful and profitable taxi service. With careful planning and dedication, your taxi business can become a key player in Cape Verde’s transportation sector.

In this guide, we’ll cover everything you need to know about starting a successful taxi business in Cape Verde, including licensing, vehicle selection, pricing strategies, and marketing tips.

1Understanding the Taxi Industry in Cape Verde

Cape Verde is an archipelago of ten islands, with Santiago, Sal, and São Vicente being the most active in tourism and business activities. These islands attract a high volume of visitors and commuters, making them prime locations for a taxi business. Most taxis operate in urban centers, airports, and tourist hotspots, where demand is highest.

Types of Taxi Services in Cape Verde

There are several types of taxi services in Cape Verde, each catering to different passenger needs:

• Regular Taxis: These are private taxis that charge per ride and operate mainly in major cities and towns. They provide flexible and convenient transport options for locals and tourists.
• Shared Taxis (Hiaces & Aluguers): These are minibusses or vans that carry multiple passengers on fixed routes at lower fares. Shared taxis are a common and affordable means of transportation for daily commuters.
• Tourist Taxi Services: These specialized taxis cater to tourists, offering services such as airport pickups, hotel transfers, and guided island tours. They are often more luxurious and provide personalized travel experiences.

Understanding which type of taxi service you want to provide will help you plan your business model, set pricing strategies, and determine the right vehicles to use.

2Registering Your Taxi Business

To legally operate a taxi business in Cape Verde, you must complete the registration and licensing process. Ensuring compliance with local regulations will help avoid legal complications and fines.

• Register Your Business: Choose a unique business name and register it with the local business registry to ensure your company is legally recognized.
• Obtain a Taxi License: You need a commercial transport license from Cape Verde’s transport authorities to legally operate a taxi service.
• Get a Tax Identification Number (TIN): Register with the tax authorities to comply with local tax laws and ensure proper business taxation.
• Insurance Requirements: Secure commercial vehicle insurance to protect your business, drivers, and passengers in case of accidents or damages.
• Vehicle Permit: Ensure that your taxi meets road safety standards and has the required permits to operate legally.

By fulfilling these legal requirements, you can run your taxi business smoothly, build customer trust, and establish a reliable transportation service in Cape Verde.

3Choosing the Right Vehicles for Your Taxi Business

Choosing the right vehicle is essential for the efficiency and profitability of your taxi business in Cape Verde. Fuel efficiency is crucial, as lower fuel consumption reduces costs. Durable, low-maintenance cars with readily available spare parts minimize downtime and repair expenses. Passenger comfort is also important—clean, spacious, and air-conditioned vehicles attract more customers, especially in Cape Verde’s tropical climate. Popular models like the Toyota Corolla, Hyundai i10, and Peugeot 508 offer affordability, reliability, and efficiency. By selecting a suitable vehicle, taxi operators can improve customer satisfaction, reduce expenses, and enhance overall business success.

4Hiring and Training Taxi Drivers

Hiring skilled drivers is crucial for a successful taxi business, especially if you plan to operate a fleet. Ensure they have a valid commercial driving license and strong local knowledge of routes, tourist spots, and traffic regulations. Good customer service skills help attract and retain passengers, while language proficiency in Portuguese, English, or French gives an advantage in Cape Verde’s tourist-driven market. Providing training on safety, customer interaction, and efficient driving techniques can enhance service quality and boost your business’s reputation, ensuring a professional and reliable taxi operation.

5Setting a Competitive Pricing Strategy

Your pricing strategy should balance competitiveness and profitability. Common models include fixed fares for airport transfers, meter-based pricing for distance-based charges, and negotiated pricing, which some tourists prefer. Many taxis also use flat rates for popular city routes. To stay profitable, compare competitor rates and ensure your prices cover fuel, maintenance, driver wages, and a reasonable profit margin.

Also Read: Want to Start a Taxi Booking Business? Let's Connect with Appicial Applications

6Marketing Your Taxi Business

Effective marketing is essential for attracting customers and growing your taxi business. Start by branding your taxis with a unique color scheme, logo, and business name for easy recognition. Use social media platforms like Facebook, Instagram, and WhatsApp to promote your services. Partnering with hotels and resorts can also help you reach more tourists. Additionally, having a website or mobile app allows customers to book rides conveniently. Offering referral discounts encourages word-of-mouth promotion. With strong branding and smart marketing strategies, you can build a loyal customer base, increase bookings, and boost your business’s profitability.

7Ensuring Safety and Legal Compliance

Safety and legal compliance are essential for a successful taxi business. Regular vehicle inspections ensure taxis meet road safety standards, while driver background checks help hire reliable professionals. Installing GPS and dash cams enhances security and allows vehicle tracking in emergencies. Staying updated with local transport laws ensures compliance with industry regulations. By prioritizing these measures, you can build a trustworthy and reputable taxi service that attracts more customers and operates smoothly.

8Expanding Your Taxi Business

Once your taxi business is running successfully, you can explore growth opportunities to increase revenue and expand your presence in Cape Verde. Consider adding more vehicles to serve a larger customer base or introducing VIP taxis with luxury options. Implementing an online booking system through an app or website can enhance convenience for passengers. Additionally, partnering with airlines and travel agencies for airport shuttle services can boost profitability. Strategic expansion not only increases earnings but also strengthens your reputation in the transport industry, positioning your business for long-term success.

Conclusion

Starting a taxi business in Cape Verde presents a lucrative opportunity due to the country’s thriving tourism industry and growing transportation needs. Whether you are a local entrepreneur or an investor, following the right steps from registering your business and choosing suitable vehicles to hiring skilled drivers, setting competitive prices, and marketing effectively can help you establish a successful and profitable taxi service. By ensuring legal compliance, prioritizing safety, and providing high-quality service, your business can grow into a leading transport provider in Cape Verde.

To maximize efficiency and stay competitive, leveraging technology-driven solutions is essential. Appicial Applications, a leading taxi app development company, offers customizable and advanced ride-hailing solutions tailored to streamline fleet management, bookings, and customer interactions. With features like real-time GPS tracking, automated fare calculation, driver management, and seamless customer experiences, Appicial’s taxi app solutions can help entrepreneurs optimize operations, enhance customer satisfaction, and expand their business.

Whether launching a new taxi business or looking to scale your existing operations, integrating digital solutions like Appicial’s taxi app will give you a competitive edge in Cape Verde’s transport industry. By combining innovative technology with strategic business planning, you can position your taxi service for long-term success while offering passengers a safe, reliable, and efficient transportation experience.

Author's Bio

Vinay Jain

Vinay Jain is the Founder at Grepix Infotech and brings over 12 years of entrepreneurial experience. His focus revolves around software & business development and customer satisfaction.