Start an Airport Shuttle Service With a Family Minivan

[tomx]

All,

I am thinking to start an Airport Shuttle Service With a Family Minivan. I live in Portland, Oregon. My questions are,

1. Is it possible to start with 1 man and 1 family minivan?
2. Do I need special licences from Oregon DMV?
3. Do I need an agreement with the airport (PDX)?
4. Is there any special requirement for the minivan? Or it'll be OK as long as it passed the DEQ inspection?

Also, I am thinking to take reservations only, not to wait at the airport for random customers. What do you guys think? Any input is welcome!

Thanks a lot!

Tom

[Harold Mansfield]

All,

I am thinking to start an Airport Shuttle Service With a Family Minivan. I live in Portland, Oregon. My questions are,
1. Is it possible to start with 1 man and 1 family minivan?

I would imagine that it is possible. Many cabs, and smaller hotel shuttles are mini vans.

2. Do I need special licenses from Oregon DMV?
Absolutely. Depending on your pricing structure, you either need to be classified as a taxi, a shuttle, a limo or some kind of commercial vehicle.

Oregon is probably not as strict and expensive as where I live in Vegas, but there are a crap load of rules, licenses, safety regulations, permissions, and insurances that you need to get.

In my town you have to have a public hearing where other livery companies have a chance to speak on your application.
The licenses are expensive.
The insurance you need to carry is expensive
Your vehicles have to pass inspection for the DOT.
Drivers have to take random drug tests and a lot of other things that I could list for days.


3. Do I need an agreement with the airport (PDX)?

Again, speaking from my experience as a Limo Driver in Vegas, if you are staging at the airport to pick up rides for hire, you need permission from the airport that usually comes with a license to stage there. Here, that medallion is $50k a year (per spot) and spaces are limited. If you are just dropping off at the airport, you don't need any special permissions.

Keep in mind that if you are picking up a scheduled client FROM the airport, that most airports have special parking for limos and such that is closer to the baggage claim areas that allow for easy in and out of the airport. You have to have a permit to access these areas and again, it cost money.
Otherwise you'll be walking your clients to the far away parking areas that the rest of the schleps have to use, which is not very quick or convenient, not to mention paying for it every time.

I don't think you can meet passengers at the gate at any airport anymore.

4. Is there any special requirement for the minivan? Or it'll be OK as long as it passed the DEQ inspection?

Your vehicle also needs to pass U.S. Department of Transportation inspection and have the proper insurances. Oregon probably has specific rules of their own.


Also, I am thinking to take reservations only, not to wait at the airport for random customers. What do you guys think? Any input is welcome!

Thanks a lot!

Tom

Off the top of my head, I'd say there is no way that one mini van will recoup enough money from all of the licenses that you need to get started as a shuttle or livery company.
I'd look into opening a Concierge/ Errand Running Service that does airport drop offs and see if you can side step some of the normal taxi and limo rules and expenses.

Also, I think the rules are different for courtesy vehicles owned by hotels and such, that are only used to transport their own customers and guests for free. Not sure if there is a loophole there. Maybe if your people were members of your concierge service, you could fall under the courtesy vehicle exemption....not sure, just spit balling some possibilities.

Remember, the quality of your vehicle is extremely important. Driving people around is hard miles on a vehicle. Maintenance is going to be often and that takes your money maker off of the road if you only have one vehicle.

Competition is steep. If I were in the area, and given the choice of just calling a Town car or limo service for an airport pick up, why would I call a mini van shuttle?

I'm not saying it can't be done, but if you intend on being classified like a Town Car service this is a very expensive industry to get into and I'm not sure the mini van approach is the right one.

If it were me, I wouldn't even consider doing it unless I could at least start out with a nice luxury SUV. When people hire a car, they want to ride in style, and you need to have plenty of storage space. If it's just a free shuttle, a mini van will do. But compared to the other companies in your area that already exist, you need to be prepared to compete on even a basic level and a mini van is not going to cut it. Even if your approach is a lower price, there's only so low that you can go when you only have one vehicle...no to mention the price of gas alone.

Now, if your business model is to contrct with a particular business to provide shuttle service, then that may work, but you will need more than one van. You can't keep your obligation when one car is down for maitenence.

Edited:
I absolutely DO NOT recommend that you try and start this on the side, unlicensed, under the table. The consequences if you get caught or have an accident with someone in the car are STEEP. You could lose everything. Maybe even go to jail if anyone is injured. Even if they are in the other car.

[Steffanblue]

Absolutely. Based on your budget, you may easily get budgeted rental cars from a near car rental services providers or you may either need to be categorized as a cab, a family budgeted ride or some kind of commercial vehicle. When i did booked my ride from the car rental servicing agency my overall experience was just great.