The cost of starting a taxi business in lebanon

Rachel Corrie

Rachel Corrie

Legendary Member
I am curious to know why is the price of buying a red plate number to hang on a car to be used as taxi is so high. To run a taxi business, you must buy a red plate number with $35,000. Most at times, the cost of acquiring the red plate number is two to three times more than the cost of buying a car. Is there anywhere else in the world there are such laws.

And then I was shocked to fins out that even Uber cars have red plates. Was this a condition by the Lebanese govt for Uber to operate in Lebanon- that cars used for Uber or registered with Uber must carry the red plates?

With high electricity, water, telecommunication and transportation tariffs and VAT at 11%, there is car plate for taxis sold at $35,000.

Who placed such a law? Is it meant to improve the lives of people (the common man) or to make sure they suffocate and die?
 
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  • mrsrx

    mrsrx

    Newish Member
    Orange Room Supporter
    I am curious to know why is the price of buying a red plate number to hang on a car to be used as taxi is so high. To run a taxi business, you must buy a red plate number with $35,000. Most at times, the cost of acquiring the red plate number is two to three times more than the cost of buying a car. Is there anywhere else in the world there are such laws.

    And then I was shocked to fins out that even Uber cars have red plates. Was this a condition by the Lebanese govt for Uber to operate in Lebanon- that cars used for Uber or registered with Uber must carry the red plates?

    With high electricity, water, telecommunication and transportation tariffs and VAT at 11%, there is car plate for taxis sold at $35,000.

    Who placed such a law? Is it meant to improve the lives of people (the common man) or to make sure they suffocate and die?
    Before uber in France it went up to 500k euros...prices dropped. The main reason is the state controls the number of taxis and you would have to buy it from someone on the market.
    That is why taxis were disgusted by Uber and were violent and blocked everything as they do not require a red plate due to and old flaw in the law (private drivers) ...
    So yea i think it is a common issue
     
    Skunk

    Skunk

    Active Member
    Orange Room Supporter
    It's not like you'd be paying income tax as high as in other countries
    in fact a red plate gives you many benefits including Daman, union membership and the right to get hired for a fare.

    Assuming it was cheap to get a red plate in a country like Lebanon, everyone would be driving a car registered as a Taxi just to have access to the above benefits.
    It wouldn't be a good business now, would it ?
     
    mrsrx

    mrsrx

    Newish Member
    Orange Room Supporter
    It's not like you'd be paying income tax as high as in other countries
    in fact a red plate gives you many benefits including Daman, union membership and the right to get hired for a fare.

    Assuming it was cheap to get a red plate in a country like Lebanon, everyone would be driving a car registered as a Taxi just to have access to the above benefits.
    It wouldn't be a good business now, would it ?
    In short opening a business for 35k + car price is not that expensive. Even a medium dekkene would cost somewhat similar ...not a horrible deal if the money made was decent
     
    Skunk

    Skunk

    Active Member
    Orange Room Supporter
    In short opening a business for 35k + car price is not that expensive. Even a medium dekkene would cost somewhat similar ...not a horrible deal if the money made was decent
    agreed
    as any other business, an upfront investment is required.
    For a red plate, i'd say it's definitely worth it in Lebanon for Daman alone (Daman for life - Correct me if i'm wrong)
     
    J

    joseph_lubnan

    Legendary Member
    taxi plate business is a racket in many parts of the world. It is a business practice that should be completely scrapped and reinvented. I am glad Uber and similar business models are decimating the taxi business and forcing change.
     
    Rachel Corrie

    Rachel Corrie

    Legendary Member
    taxi plate business is a racket in many parts of the world. It is a business practice that should be completely scrapped and reinvented. I am glad Uber and similar business models are decimating the taxi business and forcing change.
    Even vehicles operating with Uber require red plates. In other countries, Uber is meant to be completely a private affair. If you're bored, you can turn on your Uber app and go drop someone. Its not like that in Lebanon. :lol:
     
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