Over 22% of the Australian population uses Uber regularly.
In fact, so many Aussies use Uber that in 2019, the app became the preferred private transport service over taxis.
And that’s just for Uber.
The Australian rideshare industry has boomed over the last few years, and with ramping inflation underpinned by a significant increase in energy prices, the trend is here to stay.
Often considered a side hustle, starting a rideshare business can, in fact, allow you to earn enough to quit your nine-to-five job and help you achieve your goals as an entrepreneur and business owner.
So, if you want to know how to start a rideshare business, keep reading.
In this blog post, we’ll first highlight what a rideshare company is before sharing seven actionable steps to start a successful rideshare company in Australia.
What Is Rideshare?
Rideshare (also called carpool) refers to people carpooling together to share a ride and split the cost. Travelling together to the same destination allows passengers and drivers to reduce travel costs.
In other words, ridesharing involves multiple people using the same vehicle to arrive at the same destination.
What Is A Rideshare Company?
A rideshare company is an online business that provides its customers with an app allowing them to request real-time transportation.
But how do rideshare companies work?
Once customers have entered their current location into the app and requested transportation, registered drivers in the area are notified that someone is requesting their services. Through the app, they can accept the ride and use the integrated GPS to drive to the location indicated. Once they’ve picked up the passenger or passengers, they’ll drive to the desired destination to drop them off.
The transactions are always carried out through the app, meaning there isn’t any processing outside of the mobile app, making it easier and safer for the customer.
Uber, Ola, and Didi are prime examples of rideshare companies in Australia.
And if you were wondering why people would choose rideshare over public transport or taxis, here are four major benefits of rideshare companies for users:
- Rideshares are more flexible than public transport and available in all the major Australian cities and towns
- They’re usually cheaper than taxi services
- They bring people closer together
- They’re better for the environment
7 Actionable Steps To Take When Starting A Rideshare Business In 2023
Now that we’ve established what a rideshare company is, let’s review the steps you need to take when starting a rideshare business in 2023.
Find Your Rideshare Business Niche
Now, we know what you’re thinking. Isn’t rideshare already a niche? Shouldn’t I simply start a ridesharing business by providing standard rides for passengers?
Well, the problem with this is that you’d be competing with household names like Uber, which could prove a difficult endeavour as a new company.
Like in any industry, the best way to stand out from the competition is to niche down and serve a specific market. By catering to the needs of a particular market and offering specific services, you’ll be able to build a strong brand that will resonate with your target market and prompt them to choose you over the likes of Uber.
For instance, do you want to cater to big groups travelling to events together? Or perhaps you’d like to offer rides between cities?
Whatever the case, do your research to ensure there’s a market, and you’re answering a need.
Conduct Market And Competitive Research
And this takes us to our second step.
Not only is market research critical to identifying your target market’s pain points, but it’s also a great way to analyse the competition and assess how you can do better.
Some of the best ways to conduct market research include:
- Scouring forums and social media ridesharing accounts to see what web users and social media followers need.
- Spying on your competition by reading reviews and social media comments.
- Using free tools such as Google trends to spot opportunities.
Validate Your Business Idea
No matter what your business is, before spending time, energy, and money on your new venture, you need to validate your idea. And starting a rideshare business is no exception.
Is there really a market for your service? Who would use it? And how much would people pay for it?
The easiest way to validate your business idea is to create an early feedback group. Once you’ve found your niche and created an elevator pitch, invite your friends and the friends of your friends and ask for their feedback. Be careful, though. Everyone in the group should be within your target market.
Also, try to spark one-on-one conversations with engaged members of the group. They might point out strengths and weaknesses and help you refine your plan.
Check The Business Laws And Regulations
You’ve found a great rideshare niche, and your target market seems to be responding positively to your idea.
Before jumping the gun, you need to ensure your idea isn’t illegal. This will prevent you from starting a rideshare business adventure off on the wrong foot! For instance, if you want to provide school drop-off and pick-up services, you’ll need to ensure that this kind of service isn’t prohibited in the state in which you operate.
Apply For An ABN
Starting a rideshare business doesn’t only come with legal requirements. It also comes with administrative ones.
As a business owner, you’ll need to apply for an Australian Business Number (ABN). An ABN is a unique 11-digit number used by the government, community, and third parties to identify your business. And it’s also necessary if you want to apply for a domain name.
You can apply for an ABN for free using the official Australian Business Register website.
Create Your Rideshare App
It’s time to create your app!
There are two ways to create a rideshare app when starting a rideshare business. You can either create your app from scratch, which can be extremely costly, or purchase a Uber clone.
The benefit of purchasing a Uber clone is that you can rebrand the app and easily tweak it to meet your business’s specific needs.
Besides, instead of spending months developing and testing an app, you’ll be able to market it in no time.
Uber clone apps typically offer features such as:
- Fully automated driver management
- Multiple destinations
- Multiple service requests
- Driver wallet
- Customer wallet
- Landing page
- Heat maps for drivers
- Online/offline availability
- In-app pick-up and drop-off locations
- A functional admin dashboard
- Reports and analytics to help you improve and scale your business
Work On Your Marketing Strategy
Once your app is ready, you need to market it.
Now, when starting a rideshare business, keep in mind that marketing is the fuel of business growth.
Therefore, the idea is to develop an effective marketing strategy that will allow you to reach your target market and prompt them to use your app.
Here are the best marketing strategies to promote your rideshare business:
- Create a user-friendly website clearly highlighting your services
- Create a landing page and use lead magnets to collect emails
- Send regular newsletters that provide helpful information to your target market
- Work on your social media pages
- Use video on your website and across your social media pages
- Invest in paid ads
Invest In Rideshare Insurance
Starting a rideshare company means that you need to protect your business and drivers against a range of risks specific to your industry. For instance, one of your drivers could be involved in an accident while driving one of your customers or inadvertently damage someone else’s vehicle while parking. To prevent your business from being liable and having to fork out thousands of dollars in compensation fees, you need rideshare insurance.
At upcover, we’re committed to protecting small business owners like you by offering them tailored insurance solutions. So, don’t hesitate to jump on our instant quote generator, where you can get an estimate on market-leading insurance in seconds! Simply enter your occupation and expected revenue to get started.
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