The meteoric rise of companies such as Uber and Lyft has entrepreneurs going wild. “I can do the same and make a killing,” is the thought that runs through the mind. All you need is an app, a fleet of vehicles, and a quality marketing campaign. It’s the same way people view cryptocurrencies – get in on the ground floor and watch the money roll through the door.
There is a lot more to cab calling services than meets the eye. Even without the obvious pitfalls, the little things can cripple a taxi firm. Below are the dangers and how to avoid them.
Sourcing Cars
Without taxes, there is no way that the business can be a success. This is a fact that is impossible to deny. The problem is that vehicles are incredibly expensive. Add to the fact that the budget is small and there is an instant stumbling block. Where on earth are you going to find suitable cars on the cheap? The answer is the drivers. Uber doesn’t supply people with vehicles because it would cost a fortune. Instead, they get their employees to modify their car. This works perfectly because the odds are high that the driver will have a vehicle.
Obtaining Licenses
Note the plural form of license. There isn’t only one permit to obtain. Depending on the local authority, there may be dozens. For example, a cab company needs a business license to trade and make money. However, it also requires paperwork for its employees to say that they are fit to drive. And, there is a specific qualification for taxi drivers too. This is a lot to secure, and it’s worth testing the waters first. Imagine investing money in the process only to find out it was never going to happen. Speak to people at the organization and ask for info before committing.
Corporate Lawsuits
The world is changing and businesses are more liable than ever. An accident involving a company taxi can, therefore, result in legal action. Also, there is the AI factor to consider. To keep up with Uber and Lyft, your firm is going to need to invest in driverless technology. The issue with this is that bugs still exist and they can cause catastrophic accidents. Everyone has seen the video of the woman who was killed crossing the road. Neufeld, Leinberg, and Pinkiert, PA has experience in the sector. Always pick a law firm with an understanding of the industry, especially one that is quite a niche.
The Competition
From the beginning, it’s going to be hard to break into the market. Uber, in particular, has the market in its pocket at the moment. As a huge corporation, they can make life pretty tough for the little guys. But, there is a card up your sleeve: local customer service. Uber is being dogged by controversies at the moment, from employee pay to the loss of their London license. Promoting a wholesome cab service, then, may appeal to customers who disagree with their policies.
Now that you know the risks, are you willing to take the plunge?
