The business idea of organizing passenger transportation involves the provision of services for moving customers from one point to another.
The passenger transportation market is highly competitive. To date, most cities and other settlements have developed services:
- fixed-route taxi;
- municipal bus, tram and trolleybus routes.
There are many options for the provision of passenger transportation services, here you need to decide on the one that is suitable for a particular region.
For large cities, it would be a good option to launch a couple of routes across the expanses of the city itself.
How to start a passenger transportation business plan?
Therefore, first you need to choose the direction in which you will organize your business:
- What services will be provided (taxi, fixed-route taxi, specialized transportation)?
- In what directions will transportation be organized (routes, city districts, intercity transportation)?
- Who will be your client (high income passengers, women, children, passengers with pets)?
The passenger transportation market is saturated. Even Yandex, a well-known Internet service company, offers taxi services (Yandex Taxi service). Therefore, the company that sees and takes its narrow niche will be able to make money in such a competitive market.
For example, there are taxis for women. It is known that many women are afraid to ride in a taxi alone. Especially for such clients, taxis appeared, where drivers are exclusively women.
You can read more about how to open passenger transportation here .
Organizational Steps to Start a Passenger Transportation Business
To start a passenger transportation business, you need to do the following:
- define the target group of your customers;
- determine the list of services provided;
- find drivers and transport;
- equip an order acceptance point, find a dispatcher to receive customer orders;
- determine the procedure for receiving and processing requests for transportation (how to accept and execute an order);
- run ads
Passenger transportation business plan: choice of premises and staff
An important aspect in the organization of passenger transportation is the search for orders. In order to have a stable flow of customers, you need to clearly work out:
- order of search and attraction of clients;
- the procedure for submitting an application by the client for the provision of services to him;
- application execution procedure
To fulfill the first two points, it is necessary to organize a good dispatch service.
Well, drivers will fulfill the application, the hiring of which must also be taken care of in advance. Will it be drivers with their own transport or just hired employees who operate your transport — it’s up to you.
Passengers need to ensure a safe and high-quality trip, for this it is necessary to take care of choosing drivers with experience, competent and responsible.
Advertising will be a large expense item for a passenger transportation business plan. Without it, it is quite difficult to provide the flow of customers necessary for the «survival» of the business.
Advertisements can be placed:
- in transport;
- in the Internet;
- by posting ads…
The main thing is that advertising at the same time finds its target client.
Passenger transportation business plan: income, expenses, profit
What should be included in a business plan? First of all, the following aspects:
- investment at the start of the project;
- forecast of current income, expenses, cash flow of the project.
Funds that will need to be spent immediately to open a transportation company:
- rent of premises (first 2 months);
- hiring a dispatcher (first 2 months);
- control room equipment for registering orders;
- buying a «recognizable» phone number;
- service advertising;
- purchase of vehicles (if you plan to purchase your own transport).
Current costs of the project:
- rent of the control room premises — 20 thousand and more;
- dispatcher salary — 50 thousand dollars;
- the cost of hiring drivers (from 70-80% of the amount of income).
Before implementing a passenger transportation project, it is important to calculate the payback of the project. In order to calculate the payback of your business idea, you can follow this link:
The payback of the passenger transportation project (without investments in transport) will be 3-4 months. But this is not strange, because passenger transportation is the fastest paying business.
The main risks of the project:
- wrong choice of route or target audience
- wrong choice of personnel.
Organization of business in the field of passenger transportation: