Thinking about expanding your business to open up a new rideshare company in your area? If so, there are several important considerations to work through first. Beyond securing high-quality rideshare insurance, for instance, you’ll also have to draft a thorough rideshare business plan, narrow down your niche and ensure compliance with local laws.

Before you start contacting investors and buying up a fleet of vehicles for a rideshare company, read on to learn about the basics of this up-and-coming business.

Conduct Competition Research and Define Your Niche

Before you can launch a successful business, you’ll need to scope out the competition and discover what makes your company uniquely useful to local consumers. For starters, you should:
  •     Conduct an open survey and other types of market research to discover what drivers and riders do and don’t like about competitor rideshare businesses
  •     Carefully examine competitors’ phone apps and websites to figure out which features are popular and which are clunky or dysfunctional
  •     Examine the popularity of certain services in different areas to narrow down a geographical range or target demographic
  •     Find a gap in the market or a niche that your business could fill by offering unique services
  •     Consider tailoring your services to underserved demographics or offering specialized types of vehicles, such as hybrid cars or luxury vehicles, to attract more customers

Flesh Out a Business Plan and Work Out Your Finances

Once you’ve locked down a general vision of your rideshare company, the next step is to draft a thorough business plan and start detailing company finances. This step entails:
  •     Choosing a concise and memorable company name and securing a website domain
  •     Working with professionals to develop an accessible app for your business
  •     Deciding what your pricing model will be, depending on rates in your area and competitors’ offerings
  •     Finding an investor, backer or other financial support system, or instead applying for bank loans
  •     Hiring an accountant to keep track of tax documents and other company finances
  •     Deciding on a general marketing strategy, potentially including both inbound and outbound strategies

Ensure You've Covered Legal Requirements and Secured Insurance Protections

As you narrow down a unique niche, call up potential backers and draft a marketing plan, make sure you’re not overlooking the basics of legal compliance. While thorough insurance can provide your company with many protections, meeting all legal requirements is ultimately the business’s responsibility. You can put legal protections in place by:
  • Ensuring you have commercial insurance, auto insurance, general liability insurance, and other types of coverage to protect the company's employees and assets
  •     Checking drivers’ qualifications and ensuring any relevant licenses are secured
  •     Running all company vehicles through safety inspections and other requirements as mandated by your state
Before you expand your business into the up-and-coming rideshare niche, it's important to lay a strong foundation first. By securing adequate rideshare insurance, fleshing out a business plan, and more, you can help set your rideshare business up for long-term success.

About Amalgamated Specialty Group

Amalgamated Specialty Group, along with its predecessor entities, has provided public auto business owners with coverage for their vehicles and operations since 1938. We provide coverage to taxis, sedans, limousines, ride-sharing vehicles, sightseeing tours, courtesy shuttles, school shuttles, last-mile delivery, and couriers across the Washington, D.C. metro area. Our expertise and experience in the commercial transportation industry allow us to provide our clients solutions that fit their unique risk profiles. To learn more about what we can offer you, call us today at (202) 547-8700.