Efficient vehicle tracking is critical in busy metropolitan areas. A new innovative tracking technique can improve the system performance for the cab companies which are used to serve inhabitants. In fact, detecting the exact position of the vehicle can help to direct the user to the nearest vehicle for the intended customer. It also provides a fast service which helps to reduce the traffic loads. In this paper, a combination between global positioning system (GPS) and Inertial navigation system (INS) integrated with Kalman filter will be developed in order to enhance the vehicle tracking performance. The system can be applied in many applications such as water vehicles, aircrafts, ships and cars. In this work, the target of this application is Taxi Companies vehicular tracking.