Your car can make or break a customer’s experience, and it’s crucial for your bottom line too. After all, selecting the right vehicle can impact your budget and boost your earnings. To help you make the right choice, we’ve reviewed the top 8 cars for taxi businesses. We’ll cover key factors like fuel efficiency, passenger comfort, sustainability, overall running costs, and more.
Toyota Prius
- Fuel type: Hybrid (Petrol/Electric)
- Fuel economy: 56-58 mpg
- Number of seats: 5
- Insurance group: 16-18
- Acceleration: 0-60 mph in 10.4 seconds
- Price when reviewed: £27,000
Pros
If you’re looking for a taxi with brilliant fuel efficiency, the Toyota Prius is a great option. Its hybrid engine can seamlessly switch between petrol and electric power, which is particularly handy for drivers who spend hours in traffic. It’s a reliable motor too, with many models driving for over 100,000 miles with minimal issues.
- Exceptional fuel efficiency
- Low running and maintenance costs
- Long lifespan
- Quiet and smooth driving experience
Cons
While the Toyota Prius excels in fuel efficiency, its upfront cost may put off some drivers. Its boot space is also relatively small compared to other cars like the Skoda Octavia, and the acceleration may feel sluggish than other more powerful vehicles.
- More expensive than some alternatives
- Limited boot space
- Acceleration may feel sluggish
Tesla Model Y
- Fuel type: Electric
- Range: Up to 330 miles
- Number of seats: 5
- Insurance group: 50
- Acceleration: 0-60 mph in 4.8 seconds
- Price when reviewed: £44,990
Prefer to go fully electric? Consider Tesla’s Model Y. The cutting-edge car provides up to 330 miles on a single charge, which is more than enough for a day’s work. Finding a port shouldn’t be a problem either, with most cities equipped with Tesla Superchargers for an efficient boost.
Inside, there’s plenty of space for passenger comfort, while a roomy boot is excellent for storing luggage. Tesla cars also boast some of the industry’s most innovative tech, including Autopilot and advanced safety features, such as automatic emergency braking, collision avoidance, and multiple cameras and sensors that provide 360-degree visibility.
Pros
- Zero emissions and low running costs
- Long electric range and fast charging capabilities
- Spacious and modern interior
- Advanced safety and driver assistance features
Cons
The Tesla Model Y is much more expensive than popular taxis and electric vehicles. Taxi insurance is also higher, which could mean higher insurance premiums. Plus, the advanced technology in the Tesla Model Y may require specialist repairs, which could lead to longer downtimes if parts or service centres are not readily available.
- Much more expensive than other options
- Insurance may be more pricey
- Charging infrastructure may be limited in more remote areas
- Potentially costly and specialised maintenance
Skoda Octavia
- Fuel type: Petrol/Diesel
- Fuel economy: 45-65 mpg (depending on engine)
- Number of seats: 5
- Insurance group: 12-23
- Acceleration: 0-60 mph in 8.1 seconds (1.5 TSI)
- Price when reviewed: £23,000
If space is your priority, the Skoda Octavia is a top choice. The comfortable car offers generous legroom in the rear seats, and its boot space is impressive. The hatchback model provides 600 litres of space, while the Estate version offers an even larger 640 litres, so it’s perfect for passengers with lots of luggage. Plus, its efficient 2.0-litre TDI diesel engine can get you over 60 mpg to help reduce running costs.
Pros
- Large boot and spacious interior
- Good fuel economy across engine options
- Reliable and durable
- Comfortable ride quality
Cons
Despite its spacious interior and excellent fuel economy, the Skoda Octavia’s interior may feel less premium than other cars, like the Mercedes C-Class. There have also been reports of increased road and wind noise, which might affect passenger comfort.
- Some interior materials may feel less premium
- Diesel models are less eco-friendly
- Basic models lack advanced features
Volkswagen ID.7
- Fuel type: Electric
- Range: Up to 435 miles
- Number of seats: 5
- Insurance group: 30-32
- Acceleration: 0-60 mph in 7.6 seconds
- Price when reviewed: £50,000
Pros
The Volkswagen ID.7 combines practicality with cutting-edge technology. The all-electric vehicle can travel up to 435 miles on a single charge, ideal if you want to cover long distances without frequent recharging. The spacious cabin ensures passengers travel comfortably, while the large boot is great for storing luggage.
It’s also one of the more comfortable cars on the market for drivers, thanks to its ergoPremium seats. They deliver optimal comfort and support and even feature adjustable settings to help reduce fatigue on long drives.
- Long electric range, reducing downtime for charging
- Spacious interior and large boot
- Advanced technology and driver assistance features
- Lower running costs due to electric power
Cons
The Volkswagen ID.7 is on the expensive side, which could be a significant upfront investment compared to other electric or hybrid vehicles. While adequate, its acceleration is also slower than other electric vehicles, such as the Tesla Model Y. Its larger size also means its less manoeuvrable in tight urban spaces, which could be a drawback if you’re a city-based driver.
- More expensive than some other vehicles
- Charging infrastructure may be limited in some areas
- Not as quick as other electric vehicles
Mercedes C-Class
- Fuel type: Petrol/Diesel/Hybrid
- Fuel economy: 40-60 mpg (depending on engine)
- Number of seats: 5
- Insurance group: 32-42
- Acceleration: 0-60 mph in 5.9 seconds (C300e Hybrid)
- Price when reviewed: £42,000
Pros
Looking to provide a premium experience for your passengers? The Mercedes C-Class certainly does that. Its sleek design and refined interior include plush leather seats, a high-resolution infotainment system with a 10.25-inch touchscreen, and ambient lighting that enhances the cabin’s overall feel.
Perfect for executive services or airport transfers, the C-Class delivers a smooth and quiet ride thanks to its advanced suspension system and well-insulated cabin. The car also has brilliant safety features, including adaptive cruise control, lane-keeping assist, and automatic emergency braking.
- Luxurious and comfortable interior
- Smooth and quiet ride
- Advanced safety features
- Ideal for premium or executive services
Cons
The Mercedes C-Class has higher running and maintenance costs compared to more budget-friendly options like the Skoda Octavia. Also, its boot space is smaller than larger vehicles like the Volkswagen Multivan, which could be a problem if you frequently carry luggage.
- Higher running and maintenance costs
- Not as fuel-efficient as some rivals
- Smaller boot space than other vehicles in its class
Volkswagen Multivan
- Fuel type: Petrol/Hybrid
- Fuel economy: 30-40 mpg (depending on engine)
- Number of seats: 7
- Insurance group: 27-30
- Acceleration: 0-60 mph in 11.6 seconds
- Price when reviewed: £50,000
Pros
With up to seven passenger seats, the Volkswagen Multivan is ideal for ferrying larger groups. Its flexible interior also has sliding seats that can be customised to suit different trips, for example, if you need to maximise luggage space for extra passengers. Another perk is its premium interior upholstery and spacious cabin, combining to promise a comfortable ride for your customers.
- Can seat up to seven passengers
- Flexible interior layout
- Durable and well-built
- Ideal for group travel or airport transfers
Cons
The Volkswagen Multivan’s larger size can make it more challenging to navigate tight spaces compared to compact vehicles like the Toyota Corolla. It also has higher fuel consumption and maintenance costs than smaller and more efficient models, which might impact your overall running costs.
- Larger size can make it harder to navigate in tight spaces
- Higher fuel consumption compared to smaller cars
- More expensive to buy and maintain
Dacia Jogger
- Fuel type: Petrol
- Fuel economy: 45-50 mpg
- Number of seats: 7
- Insurance group: 13-15
- Acceleration: 0-60 mph in 11.2 seconds
- Price when reviewed: £16,000
Pros
If you’re looking for a cheaper model, the Dacia Jogger provides practicality and space at an affordable price. This seven-seater vehicle features a spacious cabin with rear seats that can be adjusted or folded for different situations, like when you need to increase luggage space or accommodate more passengers.
Its 1.0-litre three-cylinder petrol engine delivers reliable performance and low running costs, making it economical to run. The Jogger includes practical features like ample boot space, a flat loading floor and easy-access sliding side doors.
- Affordable purchase price
- Low running costs
- Spacious interior with seven seats
- Reliable and practical
Cons
The Dacia Jogger may lack the comfort of more expensive cars, which might affect passenger satisfaction, including Uber reviews. The interior may also feel more basic compared to higher-end models. Plus, it’s not as fuel-efficient as some rivals, such as the Toyota Prius, which could impact overall running costs.
- Lacking premium features that can be found in more expensive models
- Interior feels more basic
- Not as fuel-efficient as some competitors
Toyota Corolla
- Fuel type: Hybrid (Petrol/Electric)
- Fuel economy: 60-65 mpg
- Number of seats: 5
- Insurance group: 15-20
- Acceleration: 0-60 mph in 7.9 seconds
- Price when reviewed: £24,000
Pros
The Toyota Corolla is a compact vehicle much-loved for its reliability, fuel efficiency, and comfort, making it an ideal choice for urban taxi drivers. Equipped with a 1.8-litre hybrid engine, the Corolla delivers impressive fuel economy of up to 60 mpg to help lower running costs. Its compact dimensions, precise steering, and tight turning radius make navigating busy city streets and tight parking spaces easier.
Inside, the Corolla boasts a well-designed cabin with comfortable fabric seats, a user-friendly infotainment system featuring a 7-inch touchscreen, Apple CarPlay, Android Auto, and lots of legroom for passengers. The car also features a Continuously Variable Transmission (CVT) for smooth acceleration and a quiet ride.
- Excellent fuel economy
- Reliable and low running costs
- Compact size ideal for urban driving
- Comfortable and well-built interior
Cons
While the Toyota Corolla excels in many areas, its boot space is limited compared to cars like the Skoda Octavia. It’s also not as spacious as other options, like the Volkswagen Multivan, which could be problematic if you need to carry more passengers or luggage regularly. Basic models also lack advanced technology features in newer or higher-spec vehicles.
- Limited boot space compared to larger vehicles
- Not as spacious as some other options
- Basic models lack advanced technology features
FAQs
Should taxi drivers buy or lease their vehicle?
Deciding whether to buy or lease your taxi depends on your specific needs and financial situation. Buying a vehicle typically requires a larger upfront payment but can be more cost-effective in the long run, especially if you plan to keep it for several years.
On the other hand, leasing often involves lower monthly payments and allows you to drive a newer model with the latest features. Consider factors like how long you plan to use the vehicle, your budget, and your preferences for ownership when making this decision.
Is an electric vehicle better for taxi drivers?
Low running costs and emissions can make electric vehicles (EVs) appealing to taxi drivers. EVs also often have fewer moving parts, potentially lowering maintenance costs. However, it’s worth considering the availability of charging infrastructure and the vehicle’s range, especially if you drive long distances. If your area has robust charging options and you can manage the range requirements, an electric vehicle could be worth considering.
Insuring your taxi
Taxi insurance generally costs more than standard car insurance due to the unique risks associated with taxi work. ChoiceQuote can help you compare different taxi insurance options, find suitable rates, and discover specialised policies for taxi drivers. Get a quote today or contact us for a friendly chat and guidance.
The opinions and views expressed in the above articles are those of the author only and are for guidance purposes only. The authors disclaim any liability for reliance upon those opinions and would encourage readers to rely upon more than one source before making a decision based on the information.