Hello peeps,
I'm thinking about starting a business where I drive people to work who don't have reliable transportation. The first 10 or so rides would be free, and from there a rider can purchase a certain number of rides (maybe $5-$8 per ride, cheaper the more ride vouchers you buy at once). I'm not set on the amount, but I would want to make it cheaper than paying for a rideshare app like Uber/Lyft. You would schedule a week in advance the rides you need based on your work schedule, and a van shuttle would pick you up, along with other riders who are starting work within the same hour/half hour as you, and take you to your job.
I think this service might also be useful for folks who can't even get hired somewhere because they don't have reliable transportation. And if the first few rides are free, it would give them a chance to receive their first paycheck before they have to start paying for rides.
Would you or someone you know use a service like this? What problems do you see in a business like this? What advice do you have? I'm trying to gather feedback to see if this would be useful and a good business/service to offer. Please leave a comment if you have a free moment and want to share your thoughts! I really appreciate it!
-Jake 🙂
Would this business be successful?
byu/jjsoyfab inEntrepreneur
Posted by jjsoyfab
5 Comments
To be honest I don’t see this being a successful venture. Even at $5 a ride, that’s $10 a day, $50 a week, $200 a month… The average cost of a monthly bus pass in the US (2019 statistic so a little dated) is $58.53.
Even if you give the first 2 weeks free you’re more expensive than the average monthly bus pass and you’d likely end up just wasting gas, time and money because people would just use you until the free stuff runs out then buy a bus pass with that first check.
It appears that right now NYC has the most expensive monthly pass at $130. That’s still $70 cheaper than what you would be offering.
Not sure tour business model would work. You have to find out your insurance cost to operate your own ride share. Say it is $1000 per month. Would your model support this?
This is why Excel skills are so important in school. You can run numbers by changing values. Figure your yearly expenses divide by 52. How much revenue to cover and how much do you need to pay yourself?
Your biggest issue would be logistics. You have to get X number of people to work by 6am, 7am, 8 am and 9am most likely. Maybe some fill ins after 9 and start again around 2pm If they are on different parts of town or bad traffic times, can you deliver? If you charge $8 a ride and could do 5 rides in the morning, $40 for 4 hours? Might as well go to McDonalds and save the wear and gas on your vehicle. What happens if your in an ac ident or you break down. Angry customers. Your vouchers would have to be based on miles and find clients that make logistical sense. $1 mile. Might as well work for a rideshare.
Now something profitable is driving Medicare/Medicaid and Veterens to doctor appointments. Much higher bill rate but you will need float capital till the checks come in between 30-60 days
I don’t think starting out with a free service is a good idea. If you want to offer credit so people can pay you after they get paid you might try that. Small mom and pop grocery stores flourished in the great depression because despite higher prices than larger markets they offered credit. Supermarkets swept all that away.
Hour, ninety-minute commutes would really go for it. Fuel bills, wear and tear will eat you alive — for one ride. As always, wantrepreneurs go where the money ain’t, confusing need with want.
Where’s the business math on this working out? Oh. Right. Others in this thread did the thinking for you on this.
Why does this person not have a car? They can’t hold a job. Why? They’re the dregs of society, nulls. They are not disadvantaged noble souls. You want to help them. What they want is to drag every living being down to their level.
Brain Fart … Shower Thought … Concept … Idea … Plan. Brain fart it is. That’s all we get here. People who refuse thought posting their homework for others to do. That’s not being an idea guy. Not promising.
Do the math. Get rich. THEN do any batshit crazy thing you want.
What’s stopping ppl from signing up for the free rides, and then just stopping. And signing up afterwards, under a different name…
If you go for ‘cheapest’, you get the cheapest customers.