Passenger transportation as a business. Let's ride with the breeze!

Many cities throughout Russia (and the situation in the CIS countries is no better either) are deprived of normal bus service. Even in bad weather, people have to stand for at least half an hour to wait for one of the few cheap buses, or use the services of taxi drivers. Although the latter will take a person quickly, they will also ask for a decent amount of money - you can’t travel like that on a regular basis.

The minibus taxi service is a worthy alternative and a golden mean between comfortable taxis and cheap buses. They are maneuverable, appear more often at bus stops and have a passenger-friendly interior.

Calculation of business payback period

The fact that urban transport systems in the country are not always as developed as we would like makes minibuses unusually promising from the point of view of a business idea. Even those who do not have enough budget to purchase cars and equipment for their repair/maintenance can become the owner of their own minibus

Just one minibus traveling along a route with an average influx of clients can exceed the average Russian salary by up to five times in terms of profitability. The profitability and liquidity of passenger transportation allows you to receive income in an almost completely passive mode.

But not everything is as simple as it seems at first glance. This type of auto business has many nuances that you should get an idea about. No one will ever tell you in advance the exact profitability of an enterprise - it will depend on the presence of competitors, various restrictions imposed on route transport by city authorities, and many other variables.

Therefore, a novice entrepreneur should first get acquainted with the local market, and only then decide which form of this activity to choose - what kind of transport he will choose, whether he will only transport or engage in dispatch services, maintenance or renting out cars.

Types of minibus taxis in the Russian Federation

Minibuses can be classified into those strictly tied to a specific route, taxi minibuses and so-called “minibuses without a route”. In the latter case, passengers can directly influence the route of transport, choosing the most convenient trajectory for themselves. One way or another, in Russian legislation these categories do not exist at all, and minibuses were assigned the category of public transport back in 2013 - this also includes trolleybuses, trams and everything like that.

Public transport should carry passengers and luggage only within a regular, predetermined route, and nothing else. The transportation permit is a public contract based on the law on transportation by public transport. This suggests that only two types of route transport can operate:

• Those who pick up and disembark people at stops within the intended transportation route;
• Those who pick up and unload people at stops and other places where this is not prohibited by traffic rules, also within the intended route.

The routes themselves also have their own classification, which is enshrined in legislation and has four categories:

1. City communication . Transportation does not go beyond the boundaries of the locality;
2. Suburban service . Route transport runs from one settlement to another (maximum distance - 50 kilometers);
3. Intercity communication . Similar to the previous category, transportation is carried out between populated areas, but the distance exceeds 50 kilometers.
4. International communication . During transportation, crossing of the state border is provided.

Russian legislation also contains another classification related to passenger transportation and luggage transportation: regular transportation, passenger taxis and transportation on request. Minibuses refer to regular transportation , and are officially called minibuses or low-capacity buses. It is also worth noting that minibuses, as a rule, are not municipal transport, but are privately owned, earning money from passengers.

Requirements for servicing minibuses

The list of documents required to obtain a license is easy to collect. However, the list of licensing requirements includes two more items:

• compliance with the requirements of Art. 20 of the Road Safety Act;
• compliance with the Road Transport Charter and the Rules for the transportation of passengers.

In fact, their implementation can only be checked during work, and control over this is exercised by the State Traffic Safety Inspectorate and Rostransnadzor. If a patrol car from these services stops a minibus and discovers inconsistencies or absence of necessary documents, this will be considered a violation of licensing requirements. These include:

• pre-trip monitoring of vehicle technical condition;
• preparation of waybills for each bus;
• pre-trip medical examination of drivers;
• civil liability insurance of the vehicle owner;
• equipping transport with technical means of control.

In addition, buses must run strictly according to a schedule, there must be a route diagram in the cabin, and all passengers must have a ticket for travel. At the same time, the functions of control services are strictly delineated. For example, an ordinary traffic police patrol is not authorized to check the presence of technical inspection and medical examination stamps on the waybill; this can only be done by Rostransnadzor employees.

How to open your own route transportation business

This area of ​​entrepreneurship is controlled by the Charter of Motor Transport and Urban Ground Transport, as well as Law No. 220-F3, which regulates passenger transportation and luggage transportation. In accordance with the law, the carrier must have special parking and, if he plans to simultaneously transport more than 8 people, he must obtain a number of documents.

This includes a license, route map or permit from authorized city/regional authorities, legalizing your route transportation activities.

The main and most difficult thing in obtaining documents from this list is the license. Its presence with the carrier confirms that the services it provides comply with all safety requirements, and that the employees have a sufficient level of qualifications to perform route transportation. Rostransnadzor issues a license based on the submitted list of documents:

1. Registration of you as a business entity (legal entity);
2. A correctly completed application indicating one of the four types of transportation;
3. Constituent documents, documents regulated by the “Licensing Regulations” (notarized copies will be sufficient);
4. Documents about your tax registration status.

And this is just a short list. Each working driver will be required to provide proof of work experience, medical certificates confirming the absence of medical restrictions on driving route vehicles, and documentation of the premises where your fleet is maintained.

The last category includes extracts from the Unified State Register, documentation on technical equipment, a list of certificates and other papers on the premises (about its compliance with safety standards, etc.). The same is true for transport - you cannot do without a diagnostic card, a registration certificate for each transport and an agreement on a pre-trip medical examination.

A license for passenger road transport is usually issued within 1-1.5 months; before submitting the papers, you will have to pay 7.5 thousand in state duty.
This is quite a small amount for a perpetual license, especially considering the fact that for transportation without official permission, an organization can be fined 400 thousand rubles, and if the violation is repeated, the transport in some cases is subject to confiscation.

Organizational aspects

Next, we will briefly consider the main organizational aspects of the business plan.

Registration

Once you have chosen the direction of your business, you need to take care of registering it. An entrepreneur can start his activities as an individual entrepreneur, but his capabilities will be limited and in case of expansion he will have to re-issue documents.

Therefore, it is best to immediately register as an LLC or CJSC. It is easier to register an LLC, which will allow you to provide a full range of services not only to individuals, but also to legal entities .

Registration with the tax authorities will take from 2 weeks and will cost the entrepreneur about 10,000 -15,000 rubles. Based on the results of registration, you will receive a “Certificate”, “Extract”, open a bank account and receive a seal of the organization.

Obtaining a license

It is prohibited to transport passengers without the appropriate license. Therefore, after registering a company, you will need to apply for a license to the Ministry of Transport.

In order not to be denied a license, you need to worry in advance about hiring experienced drivers with extensive work experience . If the organization’s vehicles have more than 8 seats, then the drivers must have category “D”.

When applying for a license, you must pay a fee of 6,000 rubles. The license is issued for a 5-year period.

More detailed information about licensing requirements can be found here https://lawyer-consult.ru/other/terminy-i-opredeleniya/litsenziya-na-perevozku-passazhirov.html.

The total cost of registering documents, taking into account unforeseen expenses, will be 25,000 rubles .

About the difficulties of organizing a business for passenger transportation by minibus and the features of vehicle equipment, watch the video:

I want my own minibus: The nuances of choosing and agreeing on a route

Entrepreneurs have a lot of trouble with choosing and coordinating routes, because no one will allow carriers to engage in amateur activities. Large cities are already jam-packed with transport routes, so integrating into this area will be extremely problematic. It is recommended to explore small settlements for the presence of a free niche.

For example, if the local bus fleet is not in the best situation with the quality of service and the vehicles are outdated, this can be taken advantage of. You can find out about the possibility of obtaining a route from the local transport department or at transport events that maintain routes (it is with them that the agreement is concluded to provide you with the necessary line).

If you need to build a new route, the difficulties will be much greater. Everything needs to be coordinated with the local government, collected a bunch of documents that will deal with the economic feasibility of the route, organization, technical implementation and other nuances. In addition, you will have to compete with other applicants who have also applied for the tender and want to grab a lucrative route. And in the conditions of Russia and other countries of the former USSR, this almost always ends in failure (unless, of course, you have connections in the administration).

Before doing anything in terms of organizing a business in passenger road transport , you should first study all its components. First-hand information is best suited for this - interview the owners and drivers of minibuses, and other people involved in this area. They probably have a lot of useful data that is unlikely to be written about on the Internet.

Route planning

It should be said right away that this is not an easy matter. Everything related to drawing up a competent route requires a lot of free time and effort. If you plan to transport people around the city, then you need to find a route that would generate profit throughout the working day, and not just in the morning or evening. You also need to pay attention to competition: the less it is, the better.

If this is intercity transportation, then a well-thought-out route is also required. Firstly, you need to take into account the number of transportations per day, the condition of the roads, etc. As a rule, outside the city there is no such struggle for passengers as within its boundaries. Again, for this you will need a high-quality business plan, in which you can calculate the approximate payback of the vehicle and rental premises. The determining factors are how busy the route you choose is.

The influence of public transport on the operation of minibuses

Everything here is not as clear as it might seem at first glance. Logically, the metro and trolleybuses with trams should deprive private owners of minibuses of part of their profits, but in practice, running routes near places with high passenger traffic still remains profitable. And if the city authorities also raise the fare, the entrepreneur will probably notice an increased interest in convenient and comfortable minibuses, while public transport will deal mostly with beneficiaries.

With heavy traffic, entrepreneurs have the opportunity to maintain the profitability of their business in passenger road transportation , even without resorting to increasing the cost of their services following the rise in prices of the metro and buses with trolleybuses. But for novice players in this market, it often does not make sense to rush into this zone due to the attendant difficulties. Less popular suburban destinations are often a promising niche, as many cities continue to expand in size, acquire infrastructure, and after active development and settlement, the income level of minibus taxi owners will noticeably increase.

How to put a bus on a route

Over the years, the country has developed a standard system of urban and intermunicipal transportation. The main managers of routes (actually sellers) are administrations at the regional and municipal levels. Permission to service them has long been received by various joint-stock companies, LLCs, and individual entrepreneurs, usually those close to the authorities.

The third in this chain are the direct executors, the owners of the buses, that is, small individual entrepreneurs who are not independent players in the transportation market. They work with route owners according to different schemes.

1. An agreement is concluded between the owner of the route and the owner of the bus, for example, on joint activities, that is, the right to operate on the route is sold. It is clear that each of them has its own price.
2. The intermediary enters into a fictitious bus rental agreement with its owner, and registers him as an employee. The real relationship comes down to the fact that the driver daily “unfastens” a share of the proceeds for the route sheet.

Sometimes an entrepreneur who owns several buses enters into an agreement with an organization that has the official right to put the bus on the route and hires drivers. But most often, an agreement is concluded with individual entrepreneurs who have their own car. They are the actual owners of the business: they bear the cost of gasoline, maintenance, are responsible for everything before the law, pay taxes and insurance premiums. Intermediaries only collect “tribute” in cash. For them, minibuses are a “gold mine”; they do not show real profit, and it is almost impossible to check and take it into account.

Currently, the sale of tickets for travel on buses, including minibuses, does not require the use of cash register equipment (CCT). However, Law No. 192-FZ dated July 3, 2018 introduced an amendment, according to which the benefit is canceled from July 1, 2019.

Selection of vehicles for route transportation

Traditional “Gazelles”, which were once a generally accepted option and practically synonymous with the word minibus, now no longer meet European transportation quality standards. Uncomfortable dimensions, low ceilings, limited passenger space - all this does not play into the carrier’s hands and does not allow them to maximize profits. However, these machines also have an advantage that somewhat compensates for all the problems - their budget.

You can get a used car for mere pennies by the standards of road transport (100-300 thousand rubles), although it all depends on the condition, mileage, model year, etc. The price of new Gazelles, for example, can exceed 1 million rubles.

But it’s worth asking yourself a question: if there are several million available, is it even advisable to spend money on GAZ? Foreign manufacturers with famous brands, such as Ford , Volkswagen , Fiat , Citroen and other Europeans, provide much more interesting solutions for a similar price, both small minibuses and minibuses with a capacity of up to two dozen seats. In the table below you can see examples of current models at the end of 2020 and their approximate cost on the used market.

Table: prices for imported minibuses

It should be noted that you need to be careful with the secondary minibus market . Since savings at the initial stage often result in additional costs in the future. If your budget does not allow you to immediately buy a fleet of vehicles from dealers on the primary market, you should think about leasing as a solution to the problem. Legal entities and individual entrepreneurs can also save money thanks to leasing, since payments under the leasing contract are taken into account as current costs, added to the cost price.

A little about the positive and negative sides of business

First, let's look at the main advantages of running such a business. Firstly, organizing passenger transportation does not require large initial investments, since we will basically rent everything. This is undoubtedly a huge plus. Secondly, such a business pays off very quickly. In just 2-3 months you will have at least a small, but net income.

But as noted at the very beginning of this article, there are also disadvantages. For example, unexpected expenses. This could be payment of a traffic police fine, bus repair, etc. But this is quite normal; in other areas, you have to pay the SES and other organizations. And we also need a license, and it’s not so easy to get one, which we’ll talk about now.

We are hiring staff. What requirements must a minibus driver meet?

The most obvious thing is, of course, having a D-category driving license , as well as at least three years of driving experience. The next required document is a medical certificate authorizing the employee to drive a vehicle. It is necessary to make sure that unprofessional drivers and people who were fired from their previous place of work due to their insolvency as workers do not get hired.

Drivers need to follow all instructions from dispatchers, follow the route strictly, and know the city infrastructure in the route (traffic crossings, stops, dangerous places, gas stations, etc.).

Drivers are usually paid according to the “excess income” scheme. They need to earn an agreed amount per day , and the income from above is their earnings. Most entrepreneurs do not use a salary system with a fixed income, which is both a minus and a plus. It is beneficial for the owner of a route transportation business to motivate employees , but this often leads to overwork on the part of the latter, clashes on the roads with competitors, violations of speed limits in an attempt to earn more, which can put passengers in danger.

In some route business schemes, the owners of the vehicles are the drivers themselves, who wash and refuel the cars themselves, carry out repairs and maintenance, and also have their own parking place.

The downside here is that the driver who wants to save money (of course, since he has to share profits with the business owner) does not properly maintain the car, and passengers have to “enjoy” the ride in a dirty and beaten-up minibus. To prevent this from happening, it is recommended to choose a more practical cooperation scheme.

This scheme completely relieves drivers from all types of activities other than direct driving of the vehicle. The cost of gasoline, maintenance, washing and repairs is reimbursed by the entrepreneur from his own pocket. In order not to go into the red because of such generosity, you need to carefully monitor the profitability of the route.

And since the majority of people in our country are still far from digital technologies and pay for their trips in cash, drivers have a lot of ways to fill their pockets with funds not received by their employer. In order to correctly set the minimum rate, it is better to spend some time as a conductor on the route and calculate the real revenue.

By the way, since the topic of unscrupulous drivers has been touched upon, it is worth noting a number of negative qualities with which a person cannot be hired. The driver should not be hot-tempered, confrontational, or neurotic. Inappropriate and violent people travel on public transport all the time, and if your employee solves the problem with force, this will not benefit the passenger road transport business.

How to choose transport for a minibus

The main choice of transport category lies in the available funds; between foreign and domestic cars the price difference is about 200%. The GAZelle car has a small capacity of 8 - 15 passengers, low safety, and therefore low cost. Imported analogues of Peugeot Boxer, Ford Transit and Iveco Daily have a larger passenger capacity of 16 - 26 seats, are much more reliable and last longer. Purchasing cars secondhand carries great risks, which will lead to problems with vehicle repair and maintenance. It is necessary to clarify the availability of the necessary documents for the car, specifically OTTS. You can get advice from a certified seller, as well as warranty service.

Route transport service

The entire fleet is subject to regular inspection at a service station, which must be carried out by a competent mechanic. The minibus must be equipped with vehicle cards, satellite monitoring and tachographs. In case of a technical malfunction, the car is removed from the flight. The driver himself, before going on a trip, must also obtain permission from a regular doctor (if there is none, it is necessary to conclude a service agreement with a third-party medical institution).

The business owner must decide where to park cars during non-working hours and the nuances of vehicle maintenance (for example, whether this will be done by internal employees or a third-party organization). Car parking with an office can become a significant item of monthly expenses, so do not forget about the economic benefits of the location. It is usually cheaper on the outskirts, and more expensive in the city center.

How much money do you need to start?

We will compile an approximate list of expenses that will be needed to open a business

The amount of expenses at the start was 5,355,000 rubles. Such an investment may be too impressive for 1 person, so if possible, it is worth finding partners to work together.

Business on minibuses - the financial side of the issue (how much to spend/earn)

No one will tell you the exact cost of starting a route transportation business, and it is impossible, if only because of the need to take into account a large number of variables - regional location, cost of cars (new or used) and their number, presence/absence of in-house maintenance and other nuances.

The prices of people who offer budding entrepreneurs to purchase a ready-made business, which already has a fleet of vehicles, hired personnel and all the necessary list of papers for legalizing the activity, can help to estimate a little by the numbers. The average cost of a ready-made business is between 600 thousand and 1.5 million rubles.

Many people will want to bypass the initial bureaucratic obstacles and quickly start making direct money, so for them, buying a ready-made business will be a real salvation. But you need to be careful and first find out why the previous owner decided to dump such a promising asset, and whether there is a catch in the offer that seems profitable at first glance.

It is necessary to calculate all expenses, which include maintenance, refueling of vehicles, tax and insurance deductions, rent and other forms of costs, and also take into account the minuses in the event of force majeure - unscheduled repairs of the vehicle fleet and downtime of vehicles not allowed for the trip.

Fixed assets for business in passenger transportation

The main necessary means for this type of activity are cars. Mostly these are buses.

You can purchase a car with a one-time payment and become its owner directly, or take it out on credit.

Also, with a small capital, you can purchase a used vehicle, but you should be careful here and make sure that it is in good condition in order to avoid unpleasant expenses for restoration.

You need to choose how many people you plan to transport, and based on this, decide what type of car to choose: capacity for 50 people, 25 and 15.

At first, having acquired one car, send it on a journey, and then, when the business begins to gain momentum and you see that you are in demand, you can put other cars into business.

The most important and necessary thing in this matter is the personnel that will have to be found and hired.

You should be very strict in the selection of personnel.

A good driver must have experience in his field, must not drink (meaning while driving), be careful when driving, and not frisky on the road.

Make sure your license category matches the type of bus. By law, all drivers must undergo a medical examination before starting work. .

Based on this, the number of personnel in the organization should increase after the introduction of the necessary positions:

• medical service representative
• locksmith (checking vehicles before departure for breakdowns and malfunctions),
• engineer.

Every activity aimed at making a profit needs advertising and customer loyalty.

It is necessary to conduct a full-fledged advertising campaign.

This could be posters, radio, TV, etc.

Recommend yourself as follows:

• the flight you need and need,
• cleanliness and order in the car,
• competent drivers.

It is necessary to remember one of the important parts of building this business - an effective financial scheme.

It needs to provide for all the nuances, from the price of the purchased car to the price of gasoline consumed for the car.

Proper management of your finances will have a positive impact on your final earnings.

How much can you earn on route transportation?

This is probably the first question that concerns readers. If we take average values, one minibus can bring in about 90 thousand rubles, but significant deviations up and down are possible. A fleet of three minibuses can already bring the owner 150-500 thousand (this includes maintenance costs and other deductions).

Income is also affected by the chosen route, season of work and the contingent being transported. The most profitable are transport routes connecting residential areas with places of work/study. On weekends, revenue usually decreases noticeably, increasing only in the situation with commuter flights at the expense of gardeners/dacha owners, and even then, not in every season.

An additional means to increase profitability can be advertisements placed on the inside and outside of the minibus. Salons are hung with banners, leaflets, and booklets are placed in prominent places. Advertising material is also glued as a special film on the sides of the minibus, on passenger windows (the translucent structure allows you to maintain visibility, while showing advertising to others).

The registration is handled by employees of the advertising agency with which you have entered into a partnership agreement. Rates are individual in each case. By the way, a very interesting and profitable type of business is advertising on cars!

Transporting people by minibus as a business

Companies involved in passenger transportation have appeared relatively recently, but it is believed that this business idea is quite profitable.

There are many companies conducting exactly this type of activity. But this does not mean that it will be difficult to fit into this area.

On the contrary, motor transport is one of the simplest and most convenient ways of transportation and there will always be customers.

Where to start organizing a business in passenger transportation

This area of ​​activity can have several types. To start any business, you need to develop a project that will be aimed at making a profit.

In this project you need to pay attention to every detail, and most importantly, determine which categories of transport you will be dealing with.

These can be: city traffic, traffic outside the city, hired car.

What documents are needed to register passenger transportation?

By law, any company starting its activities must register itself with government agencies.

Here you will need to immediately select a legal form for your organization (IP, LLC, JSC, PJSC).

For this field of activity it is easier to choose an individual entrepreneur or LLC.

Also, do not forget that for passenger transportation you must obtain a license.

If you decide to engage in regular transport in a locality, you must contact the administration of this locality and report the route you have chosen.

Since management decisions take a lot of time, it would be more economical to hire a prerogative to conduct transportation on the selected flight.

To conduct business, you will need a place where the office will be located. This could be a building or an office, preferably with parking nearby.

The parking lot must be equipped with a security system. Provide for a situation so that a repair area as well as a car wash can be located in the parking lot.

However, if there are not enough material resources, then parking and car wash can be used on a rental basis.

It is not necessary to look for an office location somewhere in a prestigious area; the end of the settlement or even outside it is quite suitable, which, of course, will save the budget.

Fixed assets for business in passenger transportation

The main necessary means for this type of activity are cars. Mostly these are buses.

You can purchase a car with a one-time payment and become its owner directly, or take it out on credit.

Also, with a small capital, you can purchase a used vehicle, but you should be careful here and make sure that it is in good condition in order to avoid unpleasant expenses for restoration.

You need to choose how many people you plan to transport, and based on this, decide what type of car to choose: capacity for 50 people, 25 and 15.

At first, having acquired one car, send it on a journey, and then, when the business begins to gain momentum and you see that you are in demand, you can put other cars into business.

The most important and necessary thing in this matter is the personnel that will have to be found and hired.

You should be very strict in the selection of personnel.

A good driver must have experience in his field, must not drink (meaning while driving), be careful when driving, and not frisky on the road.

Make sure your license category matches the type of bus. By law, all drivers must undergo a medical examination before starting work. .

Based on this, the number of personnel in the organization should increase after the introduction of the necessary positions:

• medical service representative
• locksmith (checking vehicles before departure for breakdowns and malfunctions),
• engineer.

Every activity aimed at making a profit needs advertising and customer loyalty.

It is necessary to conduct a full-fledged advertising campaign.

This could be posters, radio, TV, etc.

Recommend yourself as follows:

• the flight you need and need,
• cleanliness and order in the car,
• competent drivers.

It is necessary to remember one of the important parts of building this business - an effective financial scheme.

It needs to provide for all the nuances, from the price of the purchased car to the price of gasoline consumed for the car.

Proper management of your finances will have a positive impact on your final earnings.

How much money do you need to organize passenger transportation?

Initial, one-time expenses:

• about 46,000 rubles will be spent on licensing and registration with government agencies;
• at least 1,800,000 rubles will have to be spent on purchasing a car.

Systematic expenses (things that will constantly be spent):

• rented flight in a populated area - at least 22,000 rubles;
• gasoline and other transport equipment – ​​52,000 rubles and above;
• salary to employees - 49,000 rubles.

How much can you earn on passenger transportation?

The expected income is calculated by knowing the percentage of the car's occupancy (with a constant flow of customers, it is about 80 percent) and the ticket price (approximately 15 rubles).

Based on these approximate prices, the income per shift will be equal to 21,000 rubles, and this business will pay for itself in about 4 months.

This type of activity will always be necessary for people. The initial capital here is small and it achieves payback fairly quickly.

But in order for things to “go smoothly”, you need to come up with a well-thought-out financial scheme and action plan.

How to choose equipment to provide services

Forming your own vehicle fleet is not an easy task for an entrepreneur. After all, buying buses is not a cheap undertaking. In addition, there is currently a huge selection of technology. Many people prefer to buy GAZelles, but this car is expensive to maintain. This is why experts advise purchasing foreign buses. For example, Ford Transit, Peugeot Boxer and others. True, they cost several times more than their domestic counterparts.

When purchasing a vehicle, you should pay attention to the availability of the appropriate package of documents.

Which OKVED code must be indicated when registering passenger transportation?

When registering a business providing passenger transportation services, the OKVD code 49.31 is indicated, which is used for the activities of land road transport.

Which taxation system to choose to start a business?

UTII can be used as a taxation system for a small fleet (up to 20 buses). But many entrepreneurs, when registering a business, switch to the simplified tax system or a patent.

Do you need permission to open passenger services?

In accordance with the Law of the Russian Federation on licensing, passenger transportation requires a special permit. Licenses are subject to:

• Transportation of people of a commercial nature in passenger vehicles;
• Transporting passengers using vehicles that can carry more than 8 people.

The entrepreneur issues a license for a period of 5 years for each bus.

At the initial stage of development, it is optimal to enter into an agreement with a transport company that holds a license.

Technology for starting a business to provide services to the public

Like any business, passenger transportation services begin by conducting market research and drawing up a business plan. Next, you need to buy a vehicle, register your activity and obtain a license.

There is a lot of competition in this business, but the profits are also significant. Providing services by a comfortable bus is more popular among the population. This point should be taken into account when creating your own fleet. Quality and safety will help make passenger transportation successful and business profitable.

Newbie in the passenger transportation business

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Publication date: 08/06/2019

Passenger transportation by minibuses is a business that, if properly organized, can make a profit even in a crisis, since such services are in stable demand. Organizing passenger transportation by minibus as a business is a rather complex process that requires compulsory licensing when servicing more than 8 passengers. From March 1, 2019, the rules for obtaining a license became even more stringent, which made it even more difficult for entrepreneurs to enter this market.

Business ideas for making money by transporting passengers in a minibus

The organization of passenger transportation begins with the choice of its type, since the licensing process depends on it. Possible options:

• Urban passenger transportation. They involve transporting a large number of passengers within the city. This area is characterized by high competition and tough pricing.
• Intercity transportation. They have pros and cons. The flow of passengers is less stable compared to urban transport. The number of people depends on the day of the week. Pros: Greater pricing freedom and less competition.
• A minibus is like a taxi. It involves the transportation of passengers to order, which relieves the business owner of the need to draw up a specific transportation route.

How to start a business with your own minibus: stages of the process

After choosing a specialization you must:

• Prepare a fleet of rented or own cars. Each vehicle must have a registration certificate and an inspection certificate. Copies of them and the MTPL policy are also required.
• Find employees (if necessary), draw up employment contracts with them, make copies of documents on their qualifications, and obtain their medical records.
• Register as an individual entrepreneur or LLC.
• Go through the licensing process at Rostransnadzor.

For passenger transportation within the city in some regions, a contract with the local administration and approval of the route are required.

Stages of obtaining a license

Before you start making money by transporting passengers by minibus, you must obtain a license from the territorial body of Rostransnadzor. To do this you must provide:

• Application with a request to issue a license, drawn up in accordance with Order of the Ministry of Transport No. 144 dated April 29, 2013.
• Certificate of registration with the Federal Tax Service.
• Receipt for payment of the duty.
• Vehicle ownership certificate or lease agreement.
• Copies of technical passports and inspection tickets.
• A certificate of ownership or a lease agreement for real estate and parking lots, an alternative is an agreement with a service organization.
• Employment contracts with employees, labor and medical books.
• OSAGO policy.
• A document for a tachograph, the installation of which is mandatory for passenger carriers.
• Notification that the vehicle is included in the Register of Categorized Transport Infrastructure Objects with a category designation.
• List of documents provided.

Review of the submitted package of documents lasts 30-45 days. The obtained license is unlimited. Carrying out passenger transportation without a license entails serious fines, the amount of which depends on the status of the carrier (individual entrepreneur or LLC), primary or repeated violation.

What amendments to the licensing process are in effect from March 1, 2019?

In accordance with these amendments, you cannot transport people without a license, even on a non-commercial basis. Previously, without a license, it was possible to transport company employees and make other trips for which passengers were not charged a fee. The amendments also apply to school and excursion buses.

Which vehicle should you choose?

Today there is a wide range of minibuses on sale. For beginning entrepreneurs who are just entering the passenger transportation market, in terms of the combination of price and quality, various modifications of GAZelle minibuses are most suitable, which show stability in operation in the first 3 years.

Having accumulated enough funds during this time, it is advisable to purchase foreign-made vehicles. It seriously competes with domestic cars in terms of reliability, safety, comfort and service life. Volkswagen Crafte, Ford Transit, Iveco Daily models are very popular.

Private passenger transportation by minibus is a profitable and stable business if you correctly select the optimal type of transportation: city, intercity, taxi. The difficulties of opening it: significant initial investment, which will pay off in 2-3 years at best, and a complex licensing process.

Financial model of passenger transportation

Brief investment memorandum

The company in question is engaged in passenger transportation using its own minibuses. The main focus of the company is regional intercity transportation. Prices for new cars are high, so it is planned to purchase three used imported minibuses with a capacity of 19 people in good technical condition. This will allow you to start a business with less investment and pay it off faster.

In the business plan, we assume that each bus will transport an average of 10 passengers daily over a distance of 500 km. In this case, it will be possible to recoup the initial costs in less than 2 years.

The amount of initial investment is 4,002,500 rubles;

Monthly costs - 746,873 rubles;

Monthly profit - 183,521 rubles;

Payback period - 23 months;

Break-even point - 3 months;

Return on sales is 27%.

Description of business, product or service

The company's fleet consists of imported vehicles with a capacity of 19 people. To reduce the amount of initial investment and achieve payback as quickly as possible, it is planned to buy cars with a 3-5 year mileage. To minimize the risk of technical problems, choose buses with a transparent history and undergo a full diagnostic of components and assemblies in a specialized service center. As a rule, the resource of such buses is enough for 10 years of intensive work, after which they sharply lose value. The business plan provides for complete depreciation of the vehicle fleet over 5 years.

It is assumed that travel routes will pass between regional centers, since they usually generate the largest passenger traffic. It is possible to diversify routes in favor of current seasonal destinations.

It is worth noting that owning a vehicle fleet incurs a number of additional costs: motor vehicle liability insurance, maintenance, and transport tax. In order to minimize repair costs, you need to enter into an agreement with a car service center that will regularly service your fleet. You also need to enter into an agreement with a company that will conduct medical examinations of drivers before leaving.

Description of the sales market

Competitors in the fight for passengers will be municipal bus carriers, private carriers in cars and minibuses. The passenger can also choose an alternative mode of transport: plane or train.

The “BlaBlaCar” service is very popular, which allows car drivers to look for travel companions and give them a ride for a small fee, thereby saving on fuel. In reality, it is often used by illegal taxi drivers to find clients. The prices for such a trip are lower than the cost of a bus ticket, but such trips are unsafe: no one checks the condition of the drivers before the trip, and the transport may be technically faulty.

Sales and Marketing

A study of the passenger transportation market showed that the price of a bus ticket is directly proportional to the travel distance and ranges from 1.5 to 3 rubles per kilometer, depending on the competitive environment. In addition to the ticket price per kilometer of travel, revenue for a certain period depends on the number of kilometers traveled by buses during this period and the number of tickets purchased for these flights. The product of these indicators will be revenue. Thus, to increase transportation income, one must strive to improve these indicators.

Bus load depends on the region, route and day of the week. Before and after the weekend, passenger traffic usually increases. Fluctuations in demand throughout the year depend on the specific region; most of Russia is characterized by a decline in the summer and a rise in the autumn and winter.

The main sales channel in this area for a new market participant today will be aggregators: Ros-ticket, Busfor and Tutu. To work with the aggregator, you need to enter into an agency agreement. The average commission for online booking and ticket sales services is 15%. The platform takes on all the costs of attracting passengers and allows them to quickly and conveniently purchase a ticket.

Production plan

In order to legally engage in transportation, you need to obtain a license to transport passengers by buses and minibuses equipped to transport more than 8 people, which is issued by the Federal Service for Supervision of Transport.

To include buses in the register of licenses of Rostransnadzor, you must provide information and documents:

• Details of a legal entity or individual entrepreneur;
• number and date of issue of license for passenger transportation by buses;
• state registration number;
• vehicle identification code (VIN);
• make and model of vehicle;
• year of issue;
• a document confirming ownership of the bus (property, or rental agreement, leasing, etc.);
• date of the last technical inspection of the bus;

To obtain a license you must have:

• MTPL insurance policies and compulsory passenger insurance;
• tachograph verification report;
• service agreements for the GLONASS control system (or GLONASS-GPS);
• the presence on the licensee’s staff of a responsible person qualified in the following areas: “Specialist responsible for road safety”, “Technical condition inspector”;
• documents for the driver: driver's license, new medical certificate, work book (with a record of place of work);
• a document confirming completion of the vehicle categorization procedure in Rosavtodor;

The carrier is also required to include passenger insurance in the price of each ticket.

OSGOPP is compulsory insurance of the carrier’s civil liability for damage to the life, health and property of passengers. The OSGOPP agreement is concluded for a period of at least 1 year and applies to the entire fleet of the carrier’s vehicles. The minimum and maximum rates of insurance tariffs for OSGOPP are established by the Decree of the Government of the Russian Federation and are the same for all insurance companies. Premiums are taken per passenger and for intercity and international bus transportation they are set at a level from 9.14 to 18.40 rubles.

In order to start operating, you need to register an individual entrepreneur, the tax form of the simplified tax system (6%). You should select OKVED code 49.39 “Activities of other land passenger transport, not included in other groups”

Other nuances of the route business that you should know about

Firstly, the passenger road transport industry is a highly profitable area of ​​activity where big money circulates, so it is characterized by a lack of publicity. In a large city it is difficult to find a profitable route that is not registered with one of the major players; this is a competitive and corrupt area.

Honest adherence to legislative requirements does not always allow you to achieve what you want, and many businessmen are forced to look for not entirely legal ways to resolve organizational issues, obtain permits, etc. Also, do not underestimate the list of expenses - some entrepreneurs make an overly optimistic forecast and ultimately face a lack of funds for business implementation.

For example, harsh operation of vehicles, no matter how high quality they are, will invariably lead to the need for repairs. And high-quality maintenance and repairs become a significant share in the monthly expense sheet. What can I say, even the situation when a minibus is under maintenance for several days and cannot leave for a flight is an expense.

Plus, every year the cost of servicing, refueling cars and renting parking/premises will only increase. Tariffs will have to be adjusted to compensate for losses, and this is not always possible due to a number of circumstances.

Yes, when thinking about starting a route transportation business , you must definitely analyze the prospects. Now in large cities of the Russian Federation and other countries there are problems with traffic on the road - the number of accidents is increasing, a large number of cars creates traffic jams. In such a situation, small transport with its low capacity loses to more spacious trolleybuses and trams.

Agree, instead of many minibuses scurrying back and forth, in a certain situation, a bus with 120 seats will be enough, moreover, it takes up much less space than several minibuses equivalent to it in terms of the total number of passengers transported.

On the other hand, “minibuses” are in some way even protected, since in the municipalities of many countries there are many people who lobby their interests, preventing minibuses from being forced out of the passenger road transport market or restrictive reforms being introduced. Black cash is often laundered through the route business and the business is covered at the level of the city administration.

The ban on raising tariffs for transporting people is usually lifted very quickly, as soon as minibus drivers simply do not go on a flight. It’s difficult to say who will win in the end, but minibuses have already been abolished in the capital of the Russian Federation and several large cities.

Where to start organizing a business in passenger transportation

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This area of ​​activity can have several types. To start any business, you need to develop a project that will be aimed at making a profit.

In this project you need to pay attention to every detail, and most importantly, determine which categories of transport you will be dealing with.

These can be: city traffic, traffic outside the city, hired car.

Let's summarize. Is it worth doing business on minibuses?

Based on all of the above, we can characterize passenger road transportation as a field of activity with a high entry threshold. An entrepreneur will not only need impressive start-up capital, but also remarkable organizational skills, because before launching flights, he will have to resolve many issues related to obtaining licenses, permits, hiring staff and purchasing a fleet of vehicles.

One decent used car will cost from 6 thousand dollars, and the 3 thousand dollar options offered on trading platforms in practice almost always turn out to be junk, the restoration of which will cost the same amount.

However, if the business is established and the city authorities do not put any obstacles in front of the entrepreneur, nothing prevents you from earning up to 90 thousand rubles per vehicle per month, although it usually comes out much less. That is why it makes no sense to keep less than three or four cars in your fleet, since the breakdown of at least one of them can greatly affect profitability.

You shouldn’t believe those people who talk about earning millions on route transportation - this is a clear exaggeration, but you also shouldn’t underestimate the profit from a correctly chosen route.

Transport issues

The key to passenger transportation is the correct selection of transport. Solving this problem will allow every novice entrepreneur to decide whether he is ready to engage in this type of activity or whether he should choose something else.

Minibuses

When drawing up a business plan for passenger transportation by minibuses, you should take into account the available starting capital. It will depend on its size whether to open a whole fleet of vehicles or whether you will have to limit yourself to a few cars (1-2). In Russia, the most popular public means of transportation are GAZelle minibuses. They have come a long way from other means of transportation such as buses, trams and even the subway.

They are more maneuverable and drivers feel more confident. Due to the limited number of seats in the minibus, the driver will not have to stop at every stop, which significantly reduces the time of the overall route. Whether this can be considered a disadvantage or not, everyone can decide for themselves.

As practice shows, it makes no sense to start engaging in passenger transportation if the vehicle fleet does not consist of 15-20 vehicles. This is the only way to fully ensure quality service for any route. If you do not have the necessary funds, you can establish contact with some large vehicle fleet. And having earned enough money, you can already expand.

Buses

As for buses, you either have to buy transport with your own cash or take out a loan. Accordingly, this should be reflected in the business plan. To save money, you can purchase used buses. However, any vehicle must undergo technical inspection and meet all necessary standards and regulations. When purchasing a used vehicle, it is worth considering that it must be safe for passengers. The costs of repair work should not exceed income.

Taxi service

Speaking of a taxi service, you can hire drivers with personal transport. But there are more negative aspects here than positive ones. The advantage is that all problems with the car are solved by its owner.

Now about the cons. The driver, like any other person, wants to earn good money, and therefore can simply leave if he finds a good place somewhere. It is almost impossible to control the entire workflow. In addition, the profit will be significantly less.

The only correct option in this case is to purchase your own fleet of vehicles. This is the only way to become a full-fledged owner of your business and exercise the necessary control, receiving maximum income.

Domestic or foreign transport?

For all the magnificence of GAZelles, they have a bad reputation as not the safest public transport. Designed to carry 8-15 passengers, in reality they carry much more. It gets to the point where the minibus is completely filled, which poses a danger to all road users. Unfortunately, many drivers allow the car to be overcrowded in order to earn more money.

Now it's worth talking about the price. At first glance, it looks impressive, only 500-600 thousand rubles. But it is worth considering that the service life when transporting passengers is usually no more than 2-3 years, then maintenance problems begin and the need for frequent repairs arises.

As an option, you can purchase foreign transport. At a high cost (1,000,000-1,200,000 rubles), they can seriously compete with domestic transport, since they are designed for 7-8 years of operation. In addition, good capacity allows you to transport from 22 to 26 passengers. But this also implies a large starting capital.

Whatever method is chosen, you must contact a reliable transport manufacturer. This is the only way to ensure that we provide the necessary advice, guarantees and service. Also, if necessary, you can get support in the future on all issues of interest.

Characteristics of the passenger transportation business

This business is aimed at everyone who does not have personal transport and who uses the services of carriers to move around the city and outside the city.

The services of the transport company are used by people of different genders and ages - from schoolchildren to pensioners.

List of transport company services

The transport company provides the following services:

1. Regular transportation around the city. A minibus taxi travels along a specific route and a set schedule.
2. Regular transportation to populated areas located near the city - cottages, villages, recreation centers, etc.
3. Intercity transportation. A minibus transports passengers from one city to another.
4. Transporting tourists to historical and protected places in the region. These are irregular shipments. They are characterized by seasonality. As a rule, a transport company cooperates with travel companies, which are its main customers - they find tourists and accompany them. The carrier’s task is to deliver the group to the place and pick it up at the agreed time.
5. Private transportation. Often, private individuals also use the services of a transport company - for example, during a wedding, anniversary or corporate event.

What do you need to open?

Despite the fact that there are a lot of private and public companies involved in transporting passengers, problems exist in almost all cities of Russia. Because of this, there is little competition in this field .

There are many types of transportation and you need to organize your business strictly based on the chosen direction.

However, to start your own business, you need to solve many general issues and go a long way from an idea to a finished business.

Project profitability assessment

The profitability of the project depends on the following factors:

• seasonality;
• success of the advertising campaign;
• competition;
• approach to business organization;
• price policy.

The average payback time for the project is 1 year.

Passenger transportation is always a relevant and in-demand service. However, this business has risks, the main ones being the lack of stable demand, seasonality and competition. To build a business as efficiently as possible, you need to take into account many factors. An entrepreneur cannot do without business planning, so it is recommended to order a business plan from professionals.