Transportation is one of the oldest businesses in the world and is one business that can never go extinct because as long as the world continues, people would always need to move around from place to place. The transport business is also one business in which you can make cool cash.
Large transportation companies enjoy economies of scale as regards purchasing and the ability to provide a more extensive service. Small transportation businesses can compete better in local and regional areas. The industry is largely fragmented with 40% of revenue generated by the 50 largest firms.
The following are some of the profitable transport business ideas that can prove to be successful and lucrative.
1. Towing Service
One of the most profitable transportation business ideas is a towing business, as you can start with just one towing truck. Your job will be to help move broken down or illegally parked vehicles to a designated place.
In order to open a transportation company, you need to obtain a license or operate an automotive towing business can be a frustrating task since auto-towing licenses are heavily regulated.
Some operators of towing companies forego the license entirely and don’t provide towing services to the general public; instead, they only subcontract their services on an exclusive basis to car dealers and property managers. The alternative to waiting to be awarded a towing license is to purchase one from an existing towing operator or company. Purchasing a towing license and tow truck in an urban area can cost you as much as $200,000 with no towing accounts in place.
2. Taxi Cab Business
Cab business is preferred by those who want to have a chauffeur drive them. While taxi cabs are known to pick customers off the road, private hire taxi cars serve customers who make a prior booking. One of the most profitable driving business ideas is of a driver, as they can use their own vehicle, so startup costs are relatively low.
Depending on the brand and condition of the car (new or second hand), a suitable vehicle for a taxi or cab business can cost between $5,000 and $15,000. The cab business is the most successful transport business idea because taxi cabs are often regulated in most cities, they have to be registered with the relevant city council authorities. This is why Uber and Ola have become successful unicorn companies.
The truck business is another profitable transport business idea in India as there are large chunks of imported goods that need to be transported to several towns and cities until they reach the small retailers and final consumers. Trucking and haulage are the vital links that connect imported, manufactured, and cultivated goods to final consumers like us. Lorry businesses like hiring heavy-duty trucks and tankers, commerce may somewhat be at a halt.
4. Car Rental
The car rental business is similar to cab business ideas as they are both lucrative careers, especially when you are located in a strategic place especially a city with a huge population, commercial centres, and entertainment outfits. The vehicles you hire to customers must meet higher safety standards before you can provide them for hire.
So how to start a transport business such as car hire? You should first buy vehicles for your business, and be aware of the safety features common in many modern vehicles and any features that could affect the environment. This service is also popular amongst tourists and people visiting a place for a few days.
5. Bus Transport Services
Some travellers cannot afford air travel, so they resort to ground travel through buses or trains. Transport business ideas like these with a van or bus require you to purchase a bus, hire a driver to help you drive it if you cannot drive it yourself and there you go; you are ready to start your own transportation business. You can also become an affiliate and attach your bus to an already established transportation company.
6. Shipping Services
With the increasing demand for shipping services that offer reasonable prices and promise convenience, speed, and reliability, no other time could be better than now for taking a plunge into the shipping business. The industry is growing and rapidly changing—thanks to the increasing dependence on online shopping. The business ideas in the shipping industry are highly capital intensive and competitive. However, it is one of the most profitable businesses in the transportation sector.
7. Driving School Service
If you are very good behind the wheels, you can start a driving school and teach people how to drive. Every year, anxious teens who have attained the driving age requirements and even adults alike who don’t know how to drive, approach driving schools to learn how to drive.
If you are looking for a steady source of income in the automotive industry, the driving school business is a lucrative business where you can teach people how to drive.
It is important to state that before starting a driving school, you will be required to obtain the required license, permits, and approval from the appropriate authority in your country. But apart from the little stress involved in securing approval, permit, and license for a driving school, it could be fun teaching people how to drive especially if driving is one of your hobbies.
8. Limousine Services
Limousine is a profitable transport idea, you could provide limo service to celebrities or regular people. Whenever anyone is entrusting you to drive them, a clean reputation is important. But in the case of the personal limo service, typically you’ll be driving a group of people who aren’t paying attention to where you’re going or how you’re driving but are enjoying the ride.
In order to start a limousine transport company, the driver needs to be supremely trustworthy, and the vehicle needs to be safe and well-maintained. For this, you can provide all the services yourself, from scheduling to driving. If you want to expand, just add vehicles and drivers, and keep expanding your marketing to keep business flowing.
9. Boat Charters
Boats are more than a source of transportation or a fishing aid. They are now used as a recreational facility. It is not uncommon to see people take boat trips during the holidays. Some people even hold events onboard boats.
If you have sufficient funds, you can have a boat made for you or buy one that you can start renting to people. For businesses like boat charters, a transportation business license is a must.
10. Air Cargo Business
The sea is not the only means through which cargo can be brought in, starting a transportation business like air cargo is also profitable as the air can also be utilized in transporting containers. In 2014, airlines transported 51.3 million metric tons of goods, representing more than 35% of global trade by value but less than 1% of world trade by volume.
With the right tools and equipment even though very costly, you can start an air cargo transport business by helping businessmen transport their goods faster and in a safer way.
There are numerous transportation services that are profitable, these services are based on interest, requirements, manpower and your know-how in the business and industry. There are numerous opportunities in this sector depending on the city or town. These transportation business ideas cover important aspects such as ambulance, medical emergency, outstation, shifting etc.
How to start a transportation business?
In order to start a transport business, you must choose your ideal transport business, evaluate the pros and cons, fulfil legal requirements, take a loan, establish a team and come up with transportation marketing ideas to deal with competition.
Is the transportation business profitable?
Yes, it is profitable, as the business trends have changed a lot in the last three decades and the transportation industry has grown tremendously.
What are the top transportation business ideas?
The top transportation business ideas are
- Air Cargo Business
- Boat Charters
- Limousine Services
- Driving School Services
- Shipping Services
- Bus Transport Services
- Car Hire
- Taxi Cab Business
- Towing Service
What are the other transport business ideas?
Some of the other transport business ideas are:
- Interstate Commuting
- Ferry Transport
- Car Storage
- Car Wash
- Courier Services
- Motorcycle Sales
- Transport Blogging
- Kids Taxi Service
- Airport Shuttle Business
- Medical Transportation
Must have tools for startups - Recommended by StartupTalky
Subscribe to StartupTalky
Get the latest insights delivered to you right in your inbox