Business Overview

Water taxis offer a unique way for tourists to sightsee and/or commuters to catch a ride to their intended destination. Transportation is on a public or private basis, with services including urban waterfront transportation and coastal excursions.

Who is this business right for?

If you love being on the water, and enjoy both boats and people, opening a water taxi service might be the perfect fit. This facet of the transportation industry is engaging and fun, allowing entrepreneurs to utilize their boating skills in a unique and profitable way.

What happens during a typical day at a water taxi service?

The specifics of your day-to-day activities will vary, depending upon the services your organization offers and the needs of your customers.

A typical day will look something like this:

  • Before your first group of passengers arrives, start to the boat up and perform a routine check of all fluids, including fuel.
  • Travel to your first pick-up location.
  • Greet passengers, assist them in stowing away any gear they may be traveling with.
  • If your services include sightseeing, you will need to both plan and deliver information to customers along the route.
  • Navigate waterways, dropping passengers off at predetermined locations.

Administrative duties include:

  • Planning and executing new routes
  • Marketing and networking
  • Answer emails and phone calls regarding private charters/parties (if you choose to offer this service)
  • Oversee workforce
  • Plan and enforce budget and pay bills

What is the target market?

Historically, tourists have comprised approximately 85% of a water taxi’s demographic. Consumers are now realizing the benefits of utilizing these services and are turning to them as an economical commuting option. Since each city’s waterways are distinct, owners are urged to research what the area is lacking and devise a business plan that specifically targets those needs.

How does a water taxi service make money?

A water taxi business’ primary source of income is derived from each passenger they transport.

What is the growth potential for a water taxi service?

With the rise of fuel costs and increasing environmental awareness, consumers are seeking out alternative transportation options. Many are turning to public transportation and carpooling as an economical way to reduce their carbon footprint. The water taxi industry offers a solution to these needs. Entrepreneurs have experienced significant growth over the last few years, with plans to expand their operations over the next decade.