Kids Taxi Service Business Idea

Business Summary:

As the owner of a kid’s taxi service, you will transport children of various ages to and from predetermined destinations such as, to and from school, from school to an evening care facility or to their homes, from school to home or other predetermined location when the child becomes sick, and to extracurricular activities and/or events.

You will have the flexibility to set your own hours of operation and to set up your office inside your home or in a commercial structure. You will also decide the area(s) you intend to service, maximum miles to travel per day, and the services you will provide for a specified fee.

Depending on what services you choose to provide, you may need to be on standby all day in the event a child gets sick and needs to leave school or has a doctor or dental appointment. Because of these circumstances, you and any others you employ as drivers will need cell phones to stay in contact with the office.

It will be imperative that you have vehicles, most likely vans to accommodate the number of children you will be transporting. It is also important that all vehicles get routine repairs and maintenance for optimum service and have a backup vehicle in case you have a breakdown.

Start Up Cost: $2,000 – $30,000

Can Be Home Based?: Yes

Can Be Operated Part Time?: Yes

Skills Required:

You will need to have a predetermined area of service with extensive knowledge of that area in order to travel from place to place with ease and in a timely manner. Clean driving and criminal records for you and any other drivers you employ as well as proof of insurance should be in personnel files and updated every six months. Regular drug testing should be mandatory to ensure the safety of passengers, satisfy insurance requirements and avoid liability on your part.

In addition, excellent organizational skills, attention to detail, and patience with children are also necessities in this business.

How Much Can You Earn:

Potential earnings for operating a kids taxi service will vary based on the number of hours you want to work per month, the number of kids you taxi, the number of vehicles in your fleet, and the fees you charge. When determining your price list, you will need to consider demographics, total mileage travelled, gas prices, vehicle maintenance charges, and other factors to arrive at a profitable price per child per month.

Most kid taxi services charge by the month with payment made in advance. Fees will vary depending on full time, part time, or occasional shuttle. You have the option to charge per seat or give discounts to families with multiple children being shuttled at the same time. Average full time rates range between $250.00 and $350.00 per month per child. Based on these rates, you can easily earn $30,000 to $42,000 per year by having as few as 10 children signed up. The potential earnings can be significantly higher depending on the number of children you shuttle and the number of vehicles you have in service. For example, three vans transporting thirty children would bring in gross wages of $90,000 to $126,000 per year.

Understanding Customers:

Your clients will be busy career oriented parents who will depend on you to transport their children to and from predetermined destinations.

Marketing Strategy:

The best was to find new clients is by word of mouth but until you become established, you will have to rely on other means of advertising.

There are many ways to get your business noticed and off to a quick start. Useful techniques would include putting business cards and flyers at daycare centers and pediatricians offices. Placing classified ads in the business directory section of all newspapers covering your intended area of service, short radio ads, and church bulletins can also be effective.

A website is a strong advertising tool, giving you additional options for collecting payments. Using paypal on your website will give you the ability to accept credit cards and e-checks without having to set up a costly merchant account.

Requirements:

The most essential requirement to operate a kid’s taxi service is to be thorough. Policies and procedures need to be in place as well as all documentation pertaining to employees, (insurance, driving and criminal records, and drug tests). You will also be required to have a business license to operate. For more information and specific requirements, contact your local department of revenue.

To get started you will need:

  • Vehicle(s) for transport – Van
  • Vehicle Decals
  • Booster and Car Seats
  • Cell Phones for all Drivers
  • Insurance Verification on all Drivers
  • Driving and Criminal Records on all employees
  • Drug Tests
  • Pricing Chart
  • Safety and Weather Policies
  • Passenger Rules
  • Other Policies – (pertaining to cancellations, refunds, payments, etc)
  • Employee Policies and Procedures
  • Website - Optional
  • Basic Office Supplies (business cards, flyers, pens, receipt books, paper, forms for each child, file folders to set up each customer account, and a filing cabinet)

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