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Return on Investment

Return on taxi licence investment can be as high as 10%

To invest in a taxi licence, the prospective taxi owner only needs to obtain a business registration certificate and pay a small fee for the licence transfer, unlike investing in a property which incurs expensive stamp duty, brokerage and legal fees. Whereas a $5 million property could generate a monthly rental of between $8,000 to $10,000, monthly rental from taxi investment could be as much as $20,000. Leveraged annual returns can be as high as 10% even in challenging financial times.

A comparison of taxi licence investment and property investment

Urban taxi licence Property
Buyer’s Stamp Duty / $150,000
Legal Fee / Approx.$10,000
Taxi Transfer Fee $1,000 /
Vehicle Licence Fee $3,159 /
Business Registration Fee $250 /
Comprehensive Car Insurance $40,000 /
Total Expense Approx. $44,409
four times lower than property
Approx. $210,000
(The above case is based on a $5 million transaction. Figures are for reference only and will vary according to market conditions.)
Case study of taxi licence investment

4.5% Annual Return

Taxi Licence Fee and Vehicle Cost
$6.4 million
(20%) Down Payment for Taxi Licence
$1.28 million
Total Amount of Load
$5.12 million
Monthly Repayment*
$21,701 x 300 installments (over 25 years)
Monthly Taxi Rental Income
Average Monthly Expenditure
Approx. $3,200 (over $38,000 annually which covers taxi insurance, vehicle licence fee, business registration fee, repair and maintenance work)
Annual Return

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