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Limo License

6.3K views 18 replies 9 participants last post by  Superuser  
#1 ·
hey guys, I’ve been considering getting my limo license and getting into Black/SUV and Lux/SUV. Just curious if anyone would be interested in mentoring? I’m familiar with business ownership and LLC formation. I could just use some insight on licensing/insurance.

I’m almost always at IAH/HOU, so I could meet you there. I could even bring some takeout =P Thanks!
 
#4 · (Edited)
The Limo license/permit would work if you already had a large customer base. If you are starting from scratch with no clients, it will
be very Tough. I would suggest working for another Limo company or even getting one to lease you a Limo permit. You would provide
the vehicle. There are several Limo companies that farm out some of their trips. It will be a nice investment.
You are looking at spending at least $1,000 -$1200 to get the commercial insurance, City Fees, Permit, HAS Parking at IAH/Hobby.
Don't think for a minute that Uber Black will provide you enough business to pay your overhead.
Uber Black so expensive that most people opt for the lower priced options like Uber Select,XL and X for the cheapskates.
 
#5 ·
The Limo license/permit would work if you already had a large customer base. If you are starting from scratch with no clients, it will
be very Tough. I would suggest working for another Limo company or even getting one to lease you a Limo permit. You would provide
the vehicle. There are several Limo companies that farm out some of their trips. It will be a nice investment.
You are looking at spending at lease $1,000 -$1200 to get the commercial insurance, City Fees, Permit, HAS Parking at IAH/Hobby.
Don't think for a minute that Uber Black will provide you enough business to pay your overhead.
Uber Black so expensive that most people opt for the lower priced options like Uber Select,XL and X for the cheapskates.
I hear what you're saying and completely understand. I've only been driving for two months, but I don't mind putting in the work to build clientele. You're right, I never assumed Uber Black would provide a steady stream of income. I actually only brought up Black because 1) this is an Uber forum and 2) I see them all the time in the TNC lots so I was hoping one of them would see this and kindly accept. I wouldn't count on it as steady income, more like a pleasant surprise when I ping Black out of the blue instead of XL/Select.

I had planned on doing exactly as you said; sub-contracting with a number of Limo companies throughout the area. However, my ultimate goal would be to eventually have a large enough clientele enabling me to work independently at least 60% of the time I spend driving. I am fairly confident in my ability to build this clientele. I would say, up to this point, about 10-15% of my riders have asked about requesting me as their driver for future rides. However, I have to kindly decline and explain to them that I can't do private hires because I don't have the limo license. I know I could probably get away with it, but I just don't want to take the risk and potentially put my future goals at risk.

I'm not like some drivers I've seen on various forums, I look at every ride as a service that I personally provide. I take pride in the service I provide and it often shows in my ratings and tips. I even have some UberX passengers that in the end giving me a tip amount equal to their total amount just because I showed up in a Select AND didn't treat them like crap for using UberX (after all, I could have declined the request). Sucks that Uber takes a big chunk for my great service and want to slowly get away. Not using I'll never stop driving with Uber because I still will, I won't deny that--just not as often.

Anyways, you sound like you know what you're doing, wanna take me up on my offer? =D
 
#10 ·
That's where regular folks can park while waiting to pick someone up who is coming in on an arriving flight. When the plane lands and the person has their luggage they can call the person picking them up on their cell phone that they are ready to be picked up.
 
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#11 ·
You are exactly right about that. Uber has killed it for us LIMO drivers. I used to be busy before 2013. My Limo business was getting less year after year.
I finally turned in my limo permit and keep a few personal clients. Nothing like it used to be though.
There are many successful Single Car Limo License holders in this city. Most already had a pretty good business before adding the Uber Platform as a supplement to their business. Before Uber in 2014 you needed 4 cars or 4 cars in a coop to get a limo license. Uber convinced the city to changed that law in 2014. Houston now has probably close to 400/500 single car license. It is much better than paying for overhead from a third party person either limo permit or taxi medallion. You can still succeed in the Limo industry here don't listen to the negative info here. But my details on being successful here or much more valuable than a takeout dinner and I'm certainly not going to publish details on an open forum. I don't need anymore competition than I've already have. To the guys who tried to enter after 2014 expecting more than Uber ever gave you or took advantage of your big investments in cars I sympathize with that situation.
 
#12 ·
Superuser and blackopps both make great points here. I think before trying to go out on your own you should try working for one of the local limo companies in your area for a year or two. You can develop some relationships there and network out of it when you're ready to start off on your own, it also helps you learn about the business and how to charge clients correctly, how to get farm-in, how to service properly, and how to learn the city in ways you didn't know before which will all come in handy for you as a professional chauffeur.

I've been on uberblack/uberSUV for about 3 years now and I find that the less I have to rely on it for every day business the better off I am. The expenses are high, even if you office from home. You will need $3,000-$4000 per year just for commercial insurance on one vehicle, another $1000 per year just for permits and parking tags, $120 per year for wheel chair access extortion by yellow cab, client/reservation management software which can cost you around $80/month, legal fees for running your company can range anywhere from $200 per year to $1000 unless you plan on doing it yourself, then there is gas/tolls/oil change/maintenance etc for your $50+ thousand dollar vehicle.

Realistically, you need to be averaging around $300 per day in gross fares for it to be worth it. You won't get that from uber black/SUV, even if you work the right areas you will only average around $200 or less per day on the ridesharing service, and after expenses and taxes you're better off working for a transportation company at that wage than starting your own business, sadly.

I run with one big corporate client who gives me about 70% of my total business and I usually work the hotels or uber or farm-in for the rest of it. Doing it this way you can succeed and make some good money, maybe 60k-90k per year with one car is the max. But, you will be working 7 days a week and you will be working at both sides of the clock during the busy seasons.

Best of luck to you, hope this helps.
 
#13 ·
It helps if you have a large customer base and/or a few corporate clients. Be ready to work around the clock because you will. I believe a lot of companies and people use Uber because of the convenience and flexibility. It is an on demand car service. I notice this at the company I work for. Before the days of Uber, I would see limos, town cars, and SUV's in our circle drive quite often. Today, I will see a Taxi ever now and then. I see Uber drivers driving thru several times a week. Even our exec's are taking Uber instead of corporate car service. Go figure. I think it is going to change someday
 
#14 ·
Guys seriously, thanks for the great insight! I can see how Uber would kill the sole proprietor. Compared to pulling out your phone and getting a driver in a couple of taps, scheduling a driver would seem a bit more laborious. However, maybe it’s the sanguine side of me, I would think at least some would prefer quality service above all else?
 
#15 ·
Guys seriously, thanks for the great insight! I can see how Uber would kill the sole proprietor. Compared to pulling out your phone and getting a driver in a couple of taps, scheduling a driver would seem a bit more laborious. However, maybe it's the sanguine side of me, I would think at least some would prefer quality service above all else?
Everyone prefers quality service, they just don't want to pay for it. ;)
 
#19 ·
Hell, I would like to talk too. Maybe we could put our heads together and form a small transportation company without all of
the expenses of paying the City their ridiculous fees, Harris county for the stupid vehicle rendition tax, HAS for Parking permit fees,etc. I have been operating rogue for a very long time and it's easy. Lets talk.