Online Reporter
FOR many Zimbabweans, launching a small taxi business seems like a logical move.
However, beneath the appeal of flexible work hours and daily cash flow lies a tangle of start-up costs, regulatory hurdles and operational realities.
At its most basic, setting up a one-vehicle taxi business in Zimbabwe will require at least US$6 500, though costs can quickly rise depending on the vehicle and where you operate.
Start with the car.
A used Toyota Corolla or Honda Fit, favourites among local operators for their fuel efficiency and cheap spare parts, costs between US$4 000 and US$6 000.
Many opt for ex-Japanese imports, which are slightly cheaper, but may require servicing before hitting the road.
Then there is the paperwork.
A commercial vehicle must be registered with the Central Vehicle Registry (CVR), which costs roughly US$100.
It should also be licensed with the Zimbabwe National Road Administration (ZINARA), which costs US$200 annually for a small sedan.
You will also need a certificate of fitness (US$50); a radio licence from the Broadcasting Authority of Zimbabwe (US$30); and passenger insurance, which can run upwards of US$250 per year.
City council permits are another layer.
In Harare, operating as a metered or e-hailing taxi requires a route authority and an operator’s licence, costing around US$300.
Failure to comply with the regulations attracts fines or vehicle impoundment, a common headache for unregistered drivers.
Beyond licensing and paperwork, there is fuel.
With the price of petrol hovering around US$1.60 per litre, a driver clocking 150 kilometres daily can easily spend US$25 a day on fuel alone.
Add the cost of maintenance, tyre replacements and mobile data for apps like Hwindi or Vaya, and the monthly overhead can exceed US$600.
Most new entrants, according to transport union representatives, finance their operations through savings or informal loans.
Banks remain wary of lending to the sector, citing high default risks and informal cash flows.
Still, for those who navigate the maze, returns can be
decent.
A well-run taxi in a high-demand area can net US$30 to US$50 a day, or even more if it is attached to a digital platform or services airports and hotels.
Tinaye Agere