The auto rickshaw business is one of the most successful and risk-free businesses. It can give a sustainable income and livelihood. Investing in a good three-wheeler auto rickshaw can be a good decision if you want to start your own rickshaw business. In addition, you can follow these simple yet effective tips that include keeping auto rickshaws in good condition, doing competitor analysis, maintaining transparency with the customer, and negotiating well to have a successful business.
Auto rickshaw rides are the backbone of metropolises as well as small towns. It is not an exaggeration to say that the auto-rickshaw is one of the cheapest and quickest modes of transportation as it is easily available. Be it their daily commute, a visit to the nearest grocery store, or a trip to a relative’s place, people of all ages use auto rickshaws to reach their destination on time.
So, if you are wondering whether starting an auto-rickshaw business is lucrative or not, you should know that the three-wheeler market is estimated to grow up to $15.54 billion by 2028. It is surely a profitable business that has good money in it. Three-wheeler auto price are affordable and are manufactured by some of the top companies in the country at affordable prices. You can either buy a three-wheel auto upfront or on finance.
You can follow these tips to get exponential growth in your auto rickshaw business:
1. The Appearance of Your Auto Rickshaw
If you have made up your mind to start an auto-rickshaw business and purchased a three-wheeler vehicle, always keep it in good condition to attract customers' attention. The appearance of the vehicle plays a key role when the customer wants to have a safe and comfortable ride to their destination. It surely creates a positive impression in the minds of the customer when they have to choose from the options for their next ride.
2. Accept Maximum Number of Trips
If you want to unlock incremental growth in your auto-rickshaw business, try to take more trips. A profitable business can only be built if you say yes to short as well as long trips. You can use standard rate cards to charge for the trips as per the distance and waiting time. This will help you keep a considerable profit margin.
3. Competitor Analysis
When you decide to start any business, doing a competitor analysis will help you understand its know-how. You can interact with your peers to know the standard charges during peak hours, regular timings, and night rates. Peak hours and night hours charges are usually higher than regular timing. As a result, you can add a surcharge during peak hours while making more trips during regular hours.
4. Negotiate Well
Negotiation is a crucial skill that makes a huge difference in any domain or business. If you are a sharp negotiator, you will make extra money in your business. When a customer approaches any auto rickshaw, they negotiate a fare to drop the passenger off at their desired destination. If you are good with words, you can maximize your profit. Knowing the standard rickshaw rates in the area can help you set the right price. However, price depends on several factors, such as distance, roads, and traffic. Other than this, peak hours, rainy days, or afternoon hours in the summer can be used to charge a higher fare.
Driving an auto rickshaw can be an extremely good business if you put your mind to it. Being well-behaved, maintaining your three-wheeler rickshaw, and charging fair prices can help you a lot in being successful in this business.