| Author | Message | ||
     Andrew A Brocker New member Username: Bignames Post Number: 1 Registered: 5-2007 |
I am thinking about buying a taxi cab in Ba or in Cordoba providence. I live in New York and my partner lives in Argentina, so I would have him run it. Does anyone have any experience with this? | ||
| DAN New member Username: Crazygaucho Post Number: 5 Registered: 7-2006 |
A TEST | ||
| DAN New member Username: Crazygaucho Post Number: 6 Registered: 7-2006 |
OK IT'S BEEN a while since i post anything ....although I read it everyday let me introduce my self .... I used live in LA for about 15 years or so,a couple of years ago we took a big risk and sold our property in Los angeles (bubble afraid) came back to argentina got into buying some income property wich pretty much covers our bread and butter ...... and I bought a couple of taxis to keep me busy and away from the wife (just kidding) I'm painting the whole picture here first because one day my wife calls the place that do inmigration papers here for my wife and kid and when they asked her What I do for a living and she told them that I have a taxi it was so funny man!! they almost hang up on her and she did't have time to tell them that we also have 6 rental properties ...... Idon't blame them it was just very funy ........ but ask me what you want to know about taxis here in capital federal I think I can help you | ||
| Roberto Board Administrator Username: Admin Post Number: 1089 Registered: 12-2004 |
Although virtually all taxi owners and/or employees of taxi fleets complain about something most of the time, I am pretty sute that they are able to make ends meet... and more. Specially those who manage 2 or more cabs. I know nothing about this business except my earlier hunch. If your partner is familiar with how this business is run locally and you trust himself, then you may do ok. But I also suspect that this is the kind of business where on-site knowledge is simply critical (experience from NY may not help) as there may be some groups/gangs controling aspects (routes) of it. Perhaps Dan can post about it... or how difficult was to get a license and buy a cab. | ||
| DAN New member Username: Crazygaucho Post Number: 7 Registered: 7-2006 |
Ok I'going to start throwing some numbers so you can do own math. A medallion (licensia de taxi) it's going for about $a35000 (to my surprise I paid for mine about 16000) I guess it when up like verything ... on top of that you have to buy a car forget about getting an used one it,s just not worth it so you have to spend at least another $35000 plus some $2500 to install a natural gas conversion so your car will run on compress natural ........ Nowdays a driver makes about $20 hour that roughly $200 on a 12 hour shift that you have stpopped for meals and coffe a car will do this shift on around $12 of fuel, on the old days used to be a 60% for the ownfer minus fuel and 40% for the driver today it's much common to just rent the car I beleive they asking about $110 per shift or $140 for a one driver only long shift....... and the driver pays for fuel for a liability/theft insurance (no full coverage) you'll paid about $250 plates an average of $75 per month .the worst part is our friend AFIP each employee will cost you about $650 per employee per month ........ this 's the main reason I got rid of my other two cabs you have to pay to much money for employee on taxes plus I have one guy that on just 4 months accumulated $1700 on traffic violation ......... now I only drive my own taxi I don't have any employees pay only $134(monotributo) on taxes, and that even covers some type of medical insurance and i DON'T GET THOSE CALLS ON THE MIDDLE OF THE NIGHT!!!!!!! on my own humble opinion taxis they have never been a bussines nor an investement it's just a great job I dont have set hours or days to work I dont have to deal with costumers , schedules etc etc etc but as a bussiness it just demands too much attention too many problems and you have to deal with too many people and fight over coins I just did'have the energy o the need for it ......ah almost forgot the most important thing rememember those shifts are an average of 200 kms each so you will have to replace the car maximun 3 years and a radio taxi service its around $50 per week I dont mean to discourage you but managing this over the distance I don't think its a good idea ...... driving your own car having ,no boss, no uniform, not set hours even days,not dealing with costumers,total freedom for me priceless disclaimer : this numbers are for capital federal only in argentinian pesos cordoba I planning to go this year to see it for the first time and ROBERTO fell free to edit / translate my spanglish here remember a true friend it's the one taht tells you when you face it's dirty | ||
| Roberto Board Administrator Username: Admin Post Number: 1090 Registered: 12-2004 |
Great information, thank you for sharing. | ||
| Benco New member Username: Benco Post Number: 8 Registered: 4-2007 |
Not sure about Cordoba but what I heard about Buenos Aires is that the taxi business is controlled by the mafia  . Also, in general I wouldn't recommend to enter into a competitive and well established business unless you have some new ideas. | ||
| DAN New member Username: Crazygaucho Post Number: 12 Registered: 7-2006 |
the mafia only gets invole in profitsble business my friend ..they could be some wannabes on certain taxi-stops where they only will let only their "group"to stop and pick up passengers there ..like retiro aeroparque etc. but calling that a mafia thats diminishing the mafia | ||
| andy New member Username: Bignames Post Number: 3 Registered: 5-2007 |
Dan Thank you for the geat information. Just a few clarification, 1. all the numbers you posted weree in pesos? 2. The medallion you own outright, for as long as you wnat? 3. The $250 plate fee is yearly? $75 insurance monthly? 4. The $20 and hour is what the driver takes in in fares or what he is paid to drive the cab? 5. If he rents the Taxi would he not be considered an independt contractor or a free lancer? If so Y would you hav e to pay the $650 per month then If he was NOT a steady driver. 6. Could you not include in the taxi rental contract that the driver is responsibe for all tickets like if we rented a car @ Hertz? I assume you would have to figure in a three year deprication expense of the taxi when figuring out your monthly costs. Muchos Gracias!! | ||
| DAN New member Username: Crazygaucho Post Number: 13 Registered: 7-2006 |
1) all the numbers were in argentinian pesos 1u$ss aprox 3.10 pesos 2) yes the medallion it's yours you migth only lose it if you don't comply with regulations of course as a keeping the car in good conditions passing an annual renovation with a thorouh test of the car keeping up with all the tax regulation etc 3) the $250 is monthly liability insurance .the $75 is average of monthly plates of a decent, cheap, brand new car like mine (2006 corsa wagon) 4) the $20 it's about what the driver collects in fares ( my own experience) 5)Argentina my friend. everybody knows taxis are rented now, but it's illegal to do so the tax collector and the sindicatos (unions) figure your dues on the equivalent of 4700 times what's the cost of the meter every 200 mts today is 0.26 times 4700= $1222 thats the driver's salary they figured out to charge you taxes and unions fees. to drive the car he has to be registered and get a magnetic card to authorized him, issued by the same people(SACTA) that can take your medallion away if you don't comply with the regulations 6) for all of the above you can't make a contract (I wish it was that way)and try to make a guy that takes home an average of 60 pesos a day pay for a $500 violation ....... when you want to sell your cab has to be free and clear of drivers and violation if him doesn't send you a letter quitting his job you are in big trouble ..... that's when you agree to pay for everything from your pocket and get rid of the sob. I was born around here ,but living in the US for many years made me forget. and coming back here I had all those Ideas I bought three taxis right away I was going to associated some other indepents so toghether we will buy instead of 1 tire 1000 instead 4qts of oil 400 quarters, having our own mechanics etc etc reducing the costs dramatically !!!!!!!! but I might be too old, too tired, or its just that I don't have the need of this BS anymore. that's why I just have one,some times I drive to get away from the wife talk to people found many americans while doing so ..you probrably young and I hate to discourage you. there are people that started with only one cab and today they own 50 or more ......  ALSo on the costums things I have a ford model A and while i still was in the US sent some parts here for my car nothing mayor just to test the water like points and stuff sent them straight from the vendor so they will have an invoice an everithing to charge me for the stuff 2 years later still waiting | ||
| Benco New member Username: Benco Post Number: 10 Registered: 4-2007 |
Thank you DAN for all those numbers, it certainly gives us sort of an inside perspective of the taxi business. Andy, you will probably want to do more research before taking your decision, but in the end you will only know the complete picture and the real numbers after starting the business. I have my doubts whether it is a good idea though... As I said, the taxi business is well established and competitive. The market should be more or less in equilibrium, so the exisiting operators on average do not expand their business. And they know their numbers well. Driving a taxi is an option for many people who want to work independently. The entrance barrier is not too high and little skills are required, so you bet that competition is tough. Sure you can make a living with a taxi, but it doesn't qualifiy as a business opportunity in my view. Same goes with becoming a cartonero, cleaner or english teacher  . To live in NY and invest into a taxi in BA, you should definitely know your partner very well and absolutely trust him. Be careful, since unethical behavior in Argentina is more or less normal. In any case you should add a high risk premium to your expected return on investment. Take into account alternative investments in high risk markets, e.g. junk bonds or volatile stocks which probably offer much higher returns. Don't want to discourage you, but that's my two cents. | ||
| DAN New member Username: Crazygaucho Post Number: 14 Registered: 7-2006 |
Benco couldn't say it better!!!! for me if you like absolute independence from bosses, coustumers,schedules and have and some steady income on the side it's a great job ....not a business you culd probably earn more money selling flowers on a street traffic light!!! and your investement is close to zero | ||
| Swede New member Username: Swede Post Number: 14 Registered: 9-2006 |
Hi Dan, i bought my car in this page, maybe you could find your taxi here as well, www.anuncioargentina.com good luck! | ||
| DAN New member Username: Crazygaucho Post Number: 16 Registered: 7-2006 |
thanks for the link !!!!! actually I'm looking for a transportation for my wife thinking something around $ 20k pesos, automatic transmition , probrably japanese will check this site thanks |
