In almost every regional city there are passengers who don't want a trip from one point to another, but a taxi for several hours. A woman who has to go to the bank, the notary and two shops; a trader visiting their suppliers; a visiting family who want to see the city; someone with paperwork at three different offices who doesn't want to book a taxi at every stop. It's a service traditional taxi drivers know well, but many fleets don't have it organised.
The thesis of this article is that hourly taxi service can be good business for the fleet and the driver, as long as it's charged clearly and agreed before starting. Without rules, it ends in arguments about waiting time, drivers who lose money and passengers who feel overcharged. We'll look at who asks for this service, why it's charged differently, how to set the price, how to agree the conditions, what to expect from the driver and how to make the passenger come back.
Who asks for an hourly taxi
The passenger for this service isn't the one going from work to home. They have a list of places to visit and need the car to wait at each one. Some cases come up again and again in regional cities:
- Older people doing paperwork, payments and shopping in a single morning.
- Traders visiting suppliers or delivering small amounts of goods.
- Visitors who want to see the city or its surroundings.
- Families with several errands on the same day, such as appointments and shopping.
- Companies that need to move someone between several meetings.
- Someone going to an event who wants to secure the return with the same driver.
They all have something in common: they value the peace of mind of having the same car available more than the price of each leg. They don't want to wait for a new taxi at every stop or explain to each driver where they're going. That's why they're willing to pay for that time, as long as the price is clear.
Why it's charged differently
A normal trip is charged by distance and moving time. In an hourly service, much of the time the car is parked waiting for the passenger, and during that time the driver can't take other trips. If it's charged only by the kilometre, the driver may spend three hours working to earn the same as two short trips. That's why the price has to recognise the time, not just the distance.
At the same time, the passenger shouldn't feel they're paying as much as if the car had been driving around the city the whole time. The balance lies in a reasonable hourly price, one that's worth more to the driver than being online waiting for trips at a slow time, and that works out better for the passenger than booking several separate taxis and waiting for each one.
How to set the price
There's no universal hourly price: it depends on the city, the cost of fuel and what a driver normally earns in an active hour. A good starting point is to work out how much a driver in your fleet earns on average per hour at a normal time, and set the hourly price at a similar level or a little higher, so accepting the service doesn't cost them money.
Many fleets use a simple scheme: a minimum number of hours, for example two, a fixed hourly price and an extra charge if the route leaves the city or exceeds a certain distance. What matters is that the rule is simple, written down and the same for every driver. A price that changes depending on who answers is the fastest way to lose passengers' trust.
Trips outside the city deserve a rule of their own. An outing to a nearby town or a spa resort means more fuel, worse roads and sometimes returning at night. In those cases it's best to agree a fixed price for the day or add a per-kilometre charge outside the city to the hourly price, and to make clear from the start whether it includes the driver's meal when the trip lasts many hours.
Agreeing the conditions before starting
Most problems with hourly taxi service come from what wasn't said at the start. When does the clock start, on leaving the base or on picking up the passenger? What happens if the passenger takes longer than planned? Is the full hour charged or by fractions? Who pays for parking? If these questions are answered before starting, the service runs smoothly; if they're left for the end, they end in an argument.
Ideally, dispatch confirms the conditions in writing when booking, even in a simple message: start time, hourly price, minimum, what's included and what isn't. That way the passenger knows what they'll pay and the driver has something to rely on if any question comes up. At the end, the driver should go over the total time with the passenger before charging, so there are no surprises.
It's also worth deciding how payment works. Some fleets ask for payment at the end, others charge the minimum at the start and the rest at the end. Charging the minimum up front protects the driver if the passenger cancels halfway or changes plans, and it doesn't usually bother anyone who genuinely needs the service. If cash is accepted, having the driver carry enough change avoids another small argument at the end.
We had arguments almost every week over hourly services, because every driver charged however they liked. We set a simple rule, a two-hour minimum and a fixed hourly price, and sent it by message when booking. Since then there are hardly any complaints, and some ladies ask for the same driver every month for their payments.
What to expect from the driver
In an hourly service, the driver spends a lot of time with the same passenger, and that changes the relationship. They have to be punctual at every stop, available when the passenger comes out, take care of the shopping or documents left in the car and stay discreet about the places visited. For many passengers, especially older people, the driver becomes a trusted companion.
That's why not every driver is equally suited to this service. It's worth identifying those who are patient, know the city well and treat passengers kindly, and offering these services to them first. It's an advantage for them too: a well-paid hourly service gives them a secure income at a time that might otherwise be slow.
The driver's safety matters too. Waiting for several hours at different points around the city isn't the same as doing short trips. The driver should let dispatch know about each long stop, not wait in places that feel unsafe and be able to ask the passenger to call when they're about to come out, rather than staying parked in the street the whole time.
Turning it into a repeat service
Hourly taxi service has a big advantage: passengers who use it tend to come back. The person who makes their payments every month, the trader who visits suppliers every week or the company that moves its visitors need the service regularly. If the first time goes well, they'll most likely book it again, often with the same driver.
To make the most of it, the fleet should advertise the service clearly, on its social media and in its messages to frequent passengers, and make it easy to book in advance. A service people know about, with a clear price and trusted drivers, becomes a stable source of income that doesn't depend on demand peaks.
A long-standing service, well organised
Hourly taxi service has existed since long before apps, and it's still useful to many people in regional cities. What changes is how it's organised: a clear, written hourly price, conditions agreed before starting, suitable drivers and a simple way to book it. With that, a service that used to cause arguments becomes one passengers recommend and use again.
If you want to start this week, work out how much a driver earns on average per hour, set the minimum and the hourly price, write the rule in one line and choose the drivers who'll handle it first. And with Cabgo you can launch your own branded taxi app, so your passengers find you for a short trip and for a whole morning of errands alike.
