How Do You Start A Ride Sharing Company ?
The sharing economy has been shaking up traditional business models. Yes before decades the story of transportation network is different, but right now the P2P economy have been reshaped the conventional style and improvised their revenue.
Before diving into the topic you are supposed to study about the Peer to Peer service.
Peer to Peer (P2P) Service
P2P is nothing, but connecting the consumer and the service provider via the internet. This is what happening in the transportation network. As a third party, one will provide the platform for both the riders and sellers to register themselves, and when there is a requirement they get connected through automation. Okay let's look into the happening now.
How Do You Start A Ride Sharing Company ?
Being an entrepreneur is the dream of three fourth of the population. Some gets succeed, some tries and some only have wishes.
But the most stipulated and sometimes the overrated field is this ride sharing companies. Before starting into this you have to think about the “Why, How, When,”
Here let me try to give you a big picture about the positives and negatives about starting a ride sharing company.
The most terrible thing is, this business consume more time, more energy and obviously more money beyond our perception limit. But there is a chance to enjoy the success fruit a bit later if could.
The next thing to contemplate is you gonna straight away hit the huge companies like Uber, Careem. Grab, Lyft as the competitor. Because they have been existing in this field for years and created a stupendous brand with an established customer base. So for sure it checks your endurance.
But is there any business without peril, pretty tough question to answer right ?
Think Out Of The Box
Not every business is born with the entire new strategies and models. With slight modification and updates the successful business plans have been executed. This ride sharing business has the potential to create a towering revenue.
So try out the field to compete with the niche where the pioneers failed.
The core of this business depends on the niche to compete. Because when it comes to security and reliable the pioneers scored well, When it comes to cost, it's pretty effective.
So let's dig something in different angle and as i said earlier,
- You need tons of money. Because there may or may not come the situation to lose millions of money just to make your brand.
- For the drivers benefit’s incentives bonus and for other stuff you have to pay.
- For technical support to buy or draft an app like Uber, you have to invest.
- The last one, Insurance it is also super expensive.
So to put in a line, Money plays the significant role here.
With the reference to Uber, Lyft or other pioneers and if you march in their same way, then even sprouting from the mud itself will be the biggest task, But with the same business model concentrating on the different niche is pretty adequate choice.
Let me pen down some example
- A company called Wingz, concentrated on the airport rides. Because many transportation network is backlacked in the ride to the airport.
- The other one is HopSkipDrive, they concentrated on the minor people. After an ample verification with direct interview, the drivers get selected and get trained to take care of the minor people to travel.
- Next to that a company called “Silver Rides” they highly concentrated on the senior citizens with caring service.
- Another interesting example is the company called Juno. They worked as same as Uber but the best part is, they better know the Uber and Lyft is good in customer service, so they tried to concentrate on the drivers side. (where Uber or Lyft Fails or not good at)
- When you do care of drivers, they will take care of the customers too. This is also a good strategy.
Based on the country you choose, the legal requirements varies. But make sure to reach the Public Utilities Commission (PUC) and fill out the huge form and if required, pay the fee.
For this you must have an app, insurance, and other stuff.
Getting App Becomes Much Easier
Multiple vendors are out in the marketplace for the better solution. Choose the right one, because only through app your business is going to work. You will get riders, you will get drivers, you will get the commission fee, this and that everything happens with the app you incorporate.
The thing to be spotlighted is, the app also cost effective amount of pay. Because the technology which is to embarked is wiser and UX.
Mostly every company have their own developers if so then no probs, or else if you need any technical help, then let me suggest a team of dev called Trioangle offering a MVP product like Uber like app named as Gofer.
They have worked with many startup’s to build their technical requirements. When you look into the script demo, it will be similar as Uber with features and functionalities but leveraged a different set of code and customization regarding other on-demand script is also available.
If need contact firstname.lastname@example.org for informations.
The other major requirement is insuring, you have to spend multiple dollars to insure your business, according to the exploration i have made it will take around 10 to $150,000 dollars.
So here also you has to make a huge investment.
Before 15 years if you utter about this concept or this model of business, people would have made different reactions. But right now it has proven as the working strategy without any disputes.
Though it consumes enormous amount as investment, it generates better revenue where it is worth doing. Finally all the best for your business, If you need any ideas or knowledge to share feel free to reach me out.