What does it cost to drive a taxi or rideshare?

Are you thinking of driving a taxi or using your vehicle for rideshare? You may be wondering what to do and how much it will cost to drive. Find out the initial and ongoing costs of running a taxi or rideshare.

Do I need a special drivers licence?

You may need a new Condition on your drivers licence. Some taxi or rideshare businesses want you to have a passenger transport licence code (PTLC). It goes under Conditions on your drivers licence.

To get a code, you need:

• an unrestricted Australian driver licence for at least 12 months in the last 4 years
• to meet medical standards for commercial vehicle drivers
• to provide a medical and eyesight report if you declare a medical or eyesight condition.

Apply for a free passenger transport licence code. 

What are the initial costs of rideshare?

Rideshare has lower initial costs than taxis, but operating costs may be high. Just like private drivers, you have to pay all vehicle expenses, including registration, maintenance, fuel, and insurance. However, you will be using your vehicle more often, so the cost to drive is spread over more kilometres.

Buy a green slip and register your vehicle

• Registration: $82 for all vehicles plus
• Vehicle tax: $579 for personal, $897 for business (based on weight 1,505 to 2,504 kgs).
• CTP green slip – compare prices.

Rideshare drivers pay the same CTP premium as other passenger vehicles. On top, they also pay 10 cents per kilometre in a metro area or 6.6 cents per kilometre if the journey started in a country region.

The distance-based premium applies only when you have a fare-paying passenger. You will need to keep detailed odometer records.

Compare the cheapest prices for your green slip.

Meet rideshare company requirements

Not all rideshare companies have the same requirements but they are broadly similar. This example is Uber’s:

• Show proof of third party property damage or comprehensive vehicle insurance.
• Your vehicle must have a Certificate of Inspection each year. 
• You need a medical report and background checks.
• You must display a removable sticker on the driver’s side of your rear windscreen whenever you’re driving for Uber.

Are there other costs of driving for rideshare?

Yes, but the extra cost to drive for rideshare is up to you. You may want a second phone just for Uber, a logbook, new car seat covers, a dashcam and cleaning products.

What are the initial costs of driving a taxi?

To drive a taxi, you must hold a taxi licence and register your vehicle as a taxi with Service NSW.

• Only the holder of a taxi licence can register and operate a taxi.
• It costs $200 to apply for a taxi licence.
• You can renew a taxi licence each year for $200.

Go to the Industry portal to begin your application for a taxi licence.

Did you know taxi licences can no longer be sold, transferred or leased? 

Register a taxi for the first time

Registering a taxi for the first time is similar to registering a private vehicle but with extra requirements:

• Documents showing proof of identity and entitlement to register the vehicle
• CTP green slip insurance
• An original AUVIS inspection (blue slip) report
• Copy of the taxi operator’s Certificate of Accreditation or a letter from the operator advising your vehicle operates under it.
• A Transaction Authorisation Letter emailed from Point to Point Transport Commissioner
• Application for Registration. https://tfnswforms.transport.nsw.gov.au/45070093-registration.pdf
• Pay registration fee plus vehicle tax based on weight of vehicle.

Buy a taxi green slip

The minimum CTP premium for a taxi is the same as for a Class 1 vehicle but taxis pay extra based on distance travelled.

Taxi operators have 2 options: pay per kilometre or fixed premium.

1. Pay per kilometre

Taxi drivers pay variable premiums:

• Based on a rate of 5 cents per kilometre for taxi plates
• Based on a rate of 3.3 cents per kilometre for taxi country plates
• Capped at 107,000 (85,000 for country) kilometres per year.

You have to pay the first instalment to start your CTP policy. You can pay the insurer directly or pay the insurer the first instalment then choose an Authorised Service Provider to pay from there.

• Lodge an odometer reading very 4 months (6 months for country plates).
• The next instalment will be adjusted based on how far you travelled in the previous period. Refunds may be available on instalments.

2. Fixed premium

Taxi drivers who travel over 107,000 kilometres (85,000 in the country) each year may prefer this option. You must pay the full amount to have your policy issued and there are no refunds on annual policies.

Are there other costs of driving a taxi?

There are extra costs to drive a taxi because it’s always used for business purposes. For example:

• Third-party property insurance cover of at least $5 million.
• Fare calculation device and security camera system.
• Duress alarm system and vehicle tracking device (if in Sydney, Newcastle, Wollongong or Central Coast).
• Painting with compliant signs, lights and markings.

Find more about the pros and cons of ridesharing.