save
Processing payment even if you don’t have a storefront anchored by a cash register is easier than ever before with the advent of devices like the Square swipe and chip readers. They attach to your phone or tablet, are secure, and offer competitive per transaction rates. They can even be used if you are in an area with no signal; swipe anyway, and they process when you are in range.
Transportation Business Options
The following represent many of the possible types of transportation businesses you could decide to start. It all depends on what your personal interest is and what skills you want to employ in your business.
Despite its initial controversy and claims of unfair competition and lack of licensing requirements from the established medallion-holding taxi companies, San Francisco-based Uber has staked its claim across the world—in fact, in 400 cities and 65 countries (“The Inside Story of Uber’s Radical Rebranding,” Jessi Hempel, www.wired.com, 2/2/16). Uber’s attraction as a small-business opportunity is that you are an independent contractor and on your own schedule. To sign up as a driver, start by going to their website at www.uber.com, and click on the “Become a Driver” button. A short questionnaire initiates the process.
There is no hailing of an Uber cab; Uber’s service is based on the Uber app. When someone needs a ride, they submit a trip request through the app. Uber drivers in the area get the request and must respond quickly to get the fare. The person requesting the ride can track the Uber driver on the app as it makes its way to pick them up.
As a driver you use your own vehicle, so startup costs are relatively low. Uber handles all the financial aspects of the ride. And not only can riders rate drivers using the app, but drivers can also rate users!
Payment to the driver is on a weekly basis. As independent contractors, drivers take on overhead costs (gas, maintenance, insurance, etc.) themselves. SherpaShare (www.sherpashare.com), a financial analytics site, says Uber drivers everywhere (except New York City where rates are highest), make in the range of $8.80 to $11 per hour gross before Uber’s percentage is taken.
Of course anything that is as successful as Uber immediately generates competitors. Lyft, which operates similarly to Uber, is one. Sidecar is another, but the Los Angeles Times reported that Sidecar did not make the cut and ceased rideshare operations at the end of 2015.
Renting bicycles is a thriving business in certain areas. The two key environments where renting bikes is a natural are in recreational tourism areas and cities.
In tourism areas, you might look to set up near a large hotel or resort where extended vacations stays create ready customers. In this type of business, you are going to need a storefront. Depending on your location you will need an open space where you can store all your rental bikes, or, if outdoor space allows, you can construct a simple canopy-style covering to keep your bikes under cover.
You will want to distinguish yourself as renting to the more serious cyclist with high-quality bicycles or leisurely riders with simple bicycles.
Another possibility for bicycle rentals is the bicycle-sharing approach like Hubway in Boston. Bicycle stands around the city allow riders to rent a bicycle in one place, ride to their location, and drop the bicycle at a stand near their destination. Hubway offers annual or monthly membership or daily passes. Perhaps your town is ready for a mini version of this business.
You could provide limo service to celebrities or to regular people and make them feel like celebrities; the choice is wide open. While these two services are very different in many ways, there are some fundamental similarities. We’ll focus here on the “regular
