Small Business Tax Center
Small Business Ideas, Grants &
Plans to Start & Run a Business:

Small Business Grants
CyberSchmooz
Network in Cyberschmooz Community Ask Questions Questions and Answers Share Tips Small Business Ideas List Your Business Business Advice from Idea Cafe Experts Coffee Talk with Experts Starting A Business Business Plan Biz Planning | Sample Plans Small Business Ideas Idea Name Your Biz Name Plan Your Biz Plan Financing $ Starting a Business Do It! Running your Business Marketing Tips Promotional Merchandise Marketing Tips Marketing | Sales | Customers Human Resources HR | Employees | Contractors Legal Forms & Tax Information Legal | Biz Forms Managing a Business Managing | Operations
Financing Resources Financing Your Business E Commerce & Webhosting eCommerce Take Out Info Trade Publications FREE Trade Publications Business Books Biz Books Your Own Business Small Business News Small Biz News Gen X Biz Gen X Biz Work at Home Work @ Home Business Information The Fridge - Biz Info on Ice Destress Send Awards Send Awards & Greetings Yoga At Your Desk Yoga @ Your Desk Fun Guide Guide to Find FUN Online About Idea Cafe Press Idea Cafe has received Idea Cafe in the News Idea Cafe's Kudos Kudos for Idea Cafe Advertise on Idea Cafe Advertise on Idea Cafe Privacy Policy Privacy Policy Contact Idea Cafe Contact Idea Cafe Link to Idea Cafe Link to/from Idea Cafe Join Idea Cafe
Search Idea Cafe Site Directory Site Map Online directory to business resources Biz Web Guide



Expert Answers to Biz Questions

Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.

color business bar

Ridesharing the Right Way: 5 Neglected Steps to Profitable Ridesharing

Uber and Lyft - and dozens of smaller and increasingly successful regional companies - have proven that ridesharing is big business. Rather than wasting money on a personal vehicle that will spend most of its life in a parking space, or wasting your time waiting for crowded, dirty public transit options, most folks are eagerly turning to convenient, speedy ridesharing, making it an excellent business idea for entrepreneurs everywhere.

However, starting a rideshare business isn't as easy as offering strangers rides and expecting payment. Entrepreneurs must approach ridesharing as a traditional business idea, drafting plans and marketing strategies that will enable stability and profitability. Further, ridesharing tends to require a few extra steps that some entrepreneurs fail to consider - like the following five steps to building a better rideshare business.

1. Create a Competitive Advantage

The rideshare market isn't brand-new, which means entrepreneurs have more than a handful of competitors. Therefore, it isn't enough to expect users to clamor for service since many will already feel comfortable using the big box ridesharing companies. Instead, entrepreneurs should create a competitive advantage by making their ridesharing experience unique.

Claiming a niche is perhaps the easiest way to garner attention in a competitive market. Ridesharing is rife with opportunities for agile startups to gain footholds because there are abundant niches to be claimed. For example, entrepreneurs might develop a rideshare devoted to transporting minors, one catering to physically disabled folks, one offering only luxury vehicles, or one committed to green practices. Though niches might require more planning, they are likely to pay off because they differentiate new ventures from established companies.

2. Consider Using Convenient Software

In a bid to save as much money as possible, many startup entrepreneurs strive to do everything in-house, from marketing to tech support. However, reassigning employees to arduous, complex tasks like software development not only wastes time and money, it can produce an inferior product.

Fortunately, ridesharing has existed long enough for third-party business solutions to appear. In particular, entrepreneurs should take advantage of options like RideCell, a complete ridesharing platform that organizes requests, vehicle tracking, routing, performance analysis, and more. Using pre-made software, at least initially, will help ridesharing businesses get moving sooner, attract an audience, and generate profits.

3. Complete the Legal Hoop-Jumping

Vehicles can be dangerous machines, and as such, every state boasts hundreds of laws dictating why, where, and how they may be used. Ridesharing businesses, which require vehicles, must understand and adhere to those laws if they hope to operate above-the-board. Typically, this means entrepreneurs must jump through some legal hoops before their ridesharing business can truly begin.

More and more states are requiring ridesharing entrepreneurs to file for Transportation Network Company approval (TNCs). These are most often acquired through a state's public utilities commission or transportation department. TNC approval ensures ridesharing vehicles are equipped with necessary safety equipment and drivers are licensed and trained.

4. Cover Drivers, Passengers, and Cars

While some entrepreneurs may prefer to leave auto insurance up to their drivers, some states mandate that ridesharing businesses must provide commercial insurance to keep passengers, drivers, cars, and the business safe. In such locations, states tend to set minimum coverage; for example, in California, new ridesharing businesses must have at least:

  • $50,000 for death and personal injury per person
  • $100,000 for death and personal injury per incident
  • $30,000 for property damage
  • $200,000 in excess coverage per incident

Ridesharing businesses in Periods 2 or 3 must purchase even more extensive insurance coverage, amounting to at least $1 million for death, personal injury, and property damage. Even in states that don't require insurance, entrepreneurs should consider insuring their drivers to protect their businesses and themselves from potentially ruinous lawsuits.

5. Continue Growing With the Market

Exciting changes are occurring in the transportation sector, and ridesharing entrepreneurs should pay close attention to emerging technologies to find additional opportunities to excel. For example, electric cars and other eco-friendly options should become more affordable and widely available in coming years, and claiming an entirely environmental fleet will likely be advantageous. Additionally, autonomous vehicles are likely to revolutionize the ridesharing market, lowering prices while raising safety and efficiency. As long as rideshare entrepreneurs are willing to adapt to market trends to grow, they should find ample success.

 

Google      

Small Business Tax CenterIdea Cafe HomeSign UpBiz Grant CenterCyberSchmoozCoffee Talk with ExpertsPeople in Biz ProfilesStarting Your BizBiz PlanningRunning Your BizFREE Trade PublicationsMarketingFinancing Your BizHuman ResourcesLegal & Biz FormsManaging Your BizeCommerceYou and Your BizGen XWork@HomeThe FridgeDe-StressSend an AwardSend an eGreetingYoga @ Your DeskWeb GuideIdea Cafe in the NewsAbout Idea CafeAdvertise on Idea CafeContact UsPrivacy PolicySite MapSmall Biz News

Copyright 1995-2017, Idea Cafe Inc. Downloads are for personal use only, not for resale to others, and may not be reprinted in any form without written permission from Idea Cafe Inc.

DISCLAIMER: We hope whatever you find on this site is helpful, but be cautioned that it may not apply to your own situation, or be totally current at any given time. Idea Cafe Inc. and all of its current and past experts, sponsors, advertisers, agents, contractors and advisors disclaim all warranties with regard to anything found anywhere on this family of websites, quoted from, or sent from Idea Cafe. and its related sites, publications and companies. We also take no responsibility for comments published by others on these pages.

TRADEMARKS: The following are Registered Trademarks or Servicemarks of DevStart, Inc.: Idea Cafe®, Online Coffee Break®, The Small Business Gathering Place®, Take out Info®, Biz Bar & Grill®, Complaint-O-Meter®, A Fun Approach to Serious Business™, CyberSchmooz™, and BizCafe™.