Suppose you are going on a trip, the weather is great, everything's just going fine, and all of a sudden your car just stopped for some unknown reason, amid a highway. Wondering what to do? In this time of urgency, comes the roadside assistance business plan.

A mystery person, which happens to be a highly trained technician, comes to the rescue whenever something goes wrong in your car, leaving you stranded amid nowhere, no matter where you are, they will be there for you. A Highly trained professional would come to your rescue within a stipulated time, getting you back on the road in no time.

It not only renders you protection against any mishap but also gives you peace of mind. These services are like insurance for your ride as it protects against any possible eventuality. 

It doesn't matter the kind of trouble that you are facing whether you need your vehicle towed, you have a flat tire, the battery is dead, there are minor repairs or your vehicle is stuck, you ran out of fuel or you locked yourself out of the car, you need a battery replacement, you name it and roadside service app have got you covered!

Why Towing App Development is Necessary?

Well, we cannot control the weather and with the increasing volatility in the weather proportionately, it increases the risk faced by the cars. During excessive rains, your car can get stuck in mud or get stuck in a ditch alongside the road. While drivers do not face that level of difficulty when conditions are normal but when the weather gets grim pulling your car out of mud, snow or even a pit hole is a whole new adventure that you don't want. And here comes the to your rescue roadside assistance app.

1.Ease in Worst Case Scenario

In the case when your car is not starting, towing services will test your battery, and to make it work, the attempt to jump-start your vehicle will be given. Or in the worst case, it can be replaced with the new battery on the spot.

The art of replacing tyre is not known to everyone, hence whenever you get a flat tyre the technician would come to replace the tyre with an inflated tyre kept in the car, or the absence of the inflated tyre, the technician would possess a spare tyre and in no time you will be back on the road.

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The habit of not checking in on the level of fuel while going out on a trip is a habit common to all. But don't worry, towing services like uber would be there when you run out of fuel and fill up enough fuel in your car to get to the nearest station.

It happens to all of us, forgetting our keys inside the car and getting locked outside. But now instead of getting into panic mode you just have to pick up your phone and roadside service assistance is one call away. And if the locksmith cannot open your car, your car can be towed away on the spot.

Minor auto repairs are taken care of by roadside services as the mechanic is trained to check fluids or any wire outbreak and repair it right there. The battery just runs out without giving any warnings, hence in this case technicians can come to the vehicle to test the battery, starter, and alternator, or even can replace the battery with the new one and take your old battery away.

Read Also: How to Start a Pickup and Delivery Service Business

The above given are just the examples of the most common problems faced by people and while some problems can be solved by ourselves. Then another half of the problems need special assistance and to fill this gap roadside services play a major role. Some travelers resist long-distance trips due to the fear alone of getting stranded amid the highway where no one could help them. But now, towing services have presented this opportunity to all the people to travel with safety and protection.

2. Highly Sustainable Economic Growth 

The roadside service business plan is seeing an unprecedented boom. As per "Global Vehicle Roadside Assistance Market 2020-2024", global vehicle roadside services are projected to grow by $1.75 billion during 2020-2024. It will be increasing at a CAGR of 2% during the forecast period. 

A great business opportunity that is not missed by the entrepreneurial mines of this generation. The increment of the number of vehicles on the road proportionately increases the accidents that take place. This is one of the major factors driving this market.

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The vehicles that have been on the road for quite a while are getting old and they need services and roadside services are the perfect matches. You can say that the gap between the high on demand services and the low number of shops present everywhere is filled by roadside assistance app development.

Now after knowing that this market has such a huge potential and is growing at unprecedented rates. The first step to start your roadside services would be to study the market that you want to operate in.

3. Growth in Dynamic Market 

Markets all across the globe are diverse and dynamic due to cultural differences or just infrastructure development. But they need to be analyzed properly to see an opportunity. Feasibility studies should be the premise of market analysis. 

Profits that can be made from the region, challenges that will be faced in the region, the resources required initially to set up the business, and the budget that you have set for your business must be studied well. Thus, the gap between the budget and the resources required becomes imperative.

4.Feasibility

Feasibility analysis will play a crucial role in the incorporation of your business plan. The roadside assistance business plan should be used as a blueprint for running the company. A business layout helps to analyze any deviations that start to occur while running the business and offers a solution on how to mitigate them. 

A business plan should be a step-by-step comprehensive plan for the product or the service that the company will be rendering. A business plan would also include a market analysis of the region in which your business would be operating. The market analysis would give details about the best opportunities present in that particular market, detailed analysis of the competitors, strengths, and weaknesses of the competitors, product or service that is already existing in the market, and the company's rule to improve that product or service in an innovative way which is also cost-effective.

How to Start Your Own Roadside Service Business?

Looking back in the statistics, some of the pioneer banks and finance industries have also included roadside services in their vehicle insurance. A great business plan like banks & other companies will give you all the details that are required to start a business. 

1.What Kind of Details Would You Need?

Details like resources required to start the business that depend upon the size of the business. Simultaneously, the place from that the business will be operating, and others. The complete overview of the business is quite crucial which is in the properly framed business plan. Also, the details like 

  • Resources Needed
  • Manpower required, 
  • Return on Investment (ROI) Predicted, 
  • Potential Challenges that can be faced by the business, 
  • Total Investment Required for the Business Working.

This business plan would act as a guiding stick for the business and also would attract all the potential investors for investing in your on-demand roadside assistance app.

Read Also: How You Can Develop Uber for Trucking

2. Business Speciality 

Area of specialization should be selected as the resources are limited. By choosing the area of specialty, funds can be used most effectively. Based on the financial strength of the organization, the type of services to be rendered is selected.

Competition helps the business in various aspects. It is crucial for the growth of the business. Generates innovative ideas and cost-effective methods to satisfy the customer at the lowest cost. The highly competitive market would leave you no choice but to come up with an innovative idea and the best cost-effective methods. This will help you survive in the market which in turn is beneficial for the customers and the business organization itself. 

3. Area of Operation

One of the crucial aspects of “how to start a roadside assistance business?” is the Place of Operation. The location of the business is also a determinant of the competition. By analyzing different places, you have to figure out the gap between the demand and supply of roadside services. Roads that are present in remote areas or newly constructed roads should be focused upon to start a new roadside assistance app.

As the existing roads will already have plenty of other companies operating which would lead to more competition and more competition would lead to fewer profits. The prices have to be competitive for the long run. Eventually, fewer profits for a new business is not a favorable condition. Roads having tough terrain should also be considered as not many other roadside services will be operating in such regions. 

4. Enough Resources

The extent and the magnitude of the business operations should be constrained by the financial limitations of the organization. Initially, the expenses of the business should be rationalized. To run the business smoothly, certain operational resources are several required at all times, and these include:

  • Mechanical Equipment
  • Servicing Vehicles
  • Towing Truck 
  • Manpower, 
  • Spare Equipment of the respective vehicle
  • Extra Fuel at all times 
  • Batteries and so on

5. Develop Towing App or RSA Website

The first question would be how will the customer approach you? either you'll have a customer care call number or you'll have an app like Uber. If you are going with an app, then the location will be picked up by the service station and the customer can request a pickup. 

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In the initial phase of the business, a customer care unit should be set up which will directly engage and assist the customer via a call to make it easier for the customer, and depending on the quality of the customer care, the customer base will expand. In this realm of business, 24*7 assistance should be rendered.

6. Owing Right Tools

Purchasing the right equipment and tools is very important. It will be required at all times during the operation of the business. The technician has to identify what kind of equipment would be required in the respective car that seems to be problematic. As different types of cars, bikes, trucks require different types of equipment, to identify which will be used, and what is very important. 

There will be different types of machinery that will be required to cater to different issues such as to inflate a tyre, a machine with a motor would be required, for welding you have required some other kind of machinery. Hence, it is best to consult a specialist while purchasing these machineries. If any machine is expensive, in the initial phase of the business, it is advisable to take it on a lease instead of purchasing it.

A towing vehicle will also be required at all times with the technician. If in the case the car doesn't start, the respective vehicle will be towed. Towing truck will help in picking up the car and taking it to the servicing station for repair.

7. Skilled & Well-Trained Manpower

The mechanic is a crucial human resource in the business of roadside services. Mechanic with good training and experience should be hired. A technician who knows to fix all types of vehicles should be preferred otherwise the business will have to hire different mechanics. For different types of vehicles, separate technicians would end up increasing the cost of the business. Mechanics should be put into training at regular intervals and be equipped with the latest techniques which are less time-consuming and more cost-effective.

8. Deciding Right Roadside Assistance Model

Choosing the type of business model is important. It can be either a fully owned new business or could be a franchise of already established roadside services. Both models have their equal share of advantages and disadvantages. It depends on the individual choice, their financial budget, and many other factors that are determinant in choosing the type of business model. 

Read Also: Logistics and Transportation Mobile App Development Cost and Features

A new business that will be fully owned by you alone, would take away more effort than setting up a franchise of already established roadside services. But the share of profits of a fully owned business will be higher. The new business faces difficulty entering into the market, building brand loyalty. Goodwill is something that is hard to achieve and takes a lot of time and resources. While in a franchise, these things are already in place. The franchise of a well-known company doesn’t face much resistance. As it already has the brand value that is associated with the company. Also, it carries the same goodwill, hence helping and kicking off the business.

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9. Franchise Business

A franchise model is a bit expensive as there is a premium to be paid to the parent company along with the regular profit sharing. The franchise has to comply with the norms of the parent company to make it seem standard, which leads to certain operational limitations. It's important to register the business as it shows legitimacy and legality. It is important to make all the procedures standard and get accredited by well-known companies. This would help customers to rely on the company and instill trust in the customers for the company. 

In the case of the future expansion of business, registration plays a crucial role. Arrangement of finances for the business has to be done at an early stage. Sources of finance can be through personal savings or bank loans or investors, who are willing to invest in the business model in return for a profit share.

10. Go Digital

Patience is required while entering a new realm of business. Expecting instant profits is not a wise thing. Businesses take time to reach their full potential. Advertising and marketing play a major role in taking off a business. In these modern times, digital marketing should be focused upon. Digital marketing is cost-effective and has a vast reach. 

Digital marketing gives you the option of selecting the target audience to which the ad will be shown. Hence, this type of marketing turns out to be the most effective method. The main focus should be on rendering quality services rather than extracting profits from the business. 

In the early stages is the best thing to do is to invest the profit back into the business to improve the quality of services. This is been given to the customers and come out with innovative ways to subside the plight of the customer.

11. Specified Service Area

The coverage area of the services should not go beyond a certain distance as it would deeply impact the cost and the operations of the business. The initial phase of the business cannot be draining resources. To get a competitive edge over the competitors, you need to offer something that your competitors are not offering. 

A Complete SWOT analysis of all the competitors and understanding the tradecraft in the market is very important. For this, feedback should be taken from the customers after the services and ensure that the customers are fully satisfied. If there are any grievances from the customer, they should be addressed on an immediate basis that would make sure that the customer comes back and it would build brand loyalty.

Reminders for service of vehicles can also be sent to the customers. Business procedures should be continuously updated and improved for higher customer satisfaction. Once, by giving regular quality services, the brand is established in the market, it will be relatively easier to make a profit, sustain and grow in the market.

Final Words:

So this was all about the Roadside Assistance Business. Anybody who is up for towing business app like Uber, or with a new idea has to be very cautious and intelligent while operating. 

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Arun Goyal

Managing Director @ Octal IT Solution, a prominent Mobile App Development Company offering cutting-edge iPhone App Development and Android App Development services to Startups, SMEs and Fortune-500 Companies.

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