How to Start a Pet Taxi Business

Part 1 - How to start a Pet Taxi business - Background

From expensive food to regular grooming appointments, pet owners are infamous for spending money on their animals. Getting one’s pet to their veterinarian and/or grooming appointments, however, can prove quite challenging to work into our already busy lives. Full-time professionals, the elderly, and individuals in poor health face even more obstacles, particularly with the limited hours many businesses hold. For this reason, consumers are now turning to pet taxi services to transport their pets to their various appointments. The animal is picked up, safely secured in the vehicle, and transported where they need to go. At the end of the appointment, he/she is dropped back off home. The peace of mind one gets from knowing their furry friend is being properly cared for is invaluable for most pet owners.

Our guide is in 3 parts:

• Part 1 - How to start a Pet Taxi business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a pet taxi business?

Startup costs for a pet taxi business are relatively low, ranging from $15,000 to $40,000, depending upon the supplies you already have on hand. Your initial investment should include the following:

• Vehicle – Large enough to fit several crates and easy to get in and out of for those animals that have difficulty getting around. Proper climate control is also imperative.

• Location – While you won’t have a lot of visitors throughout the day, experienced pet taxi business owners recommend having a small brick and mortar shop in a visible and easily accessible location.

• License – Under the Animal Welfare Act, you may be required to acquire a license through the United States Department of Agriculture. Visit their website for rules and guidelines. Be sure to check with your state, city, and county guidelines as well.

• Insurance and bond – Your insurance agent can recommend the best policies and bonds to ensure you are fully covered.

• Business software – Since you are on the road most of the time, having the ability to take payments from your mobile device is essential. There are a variety of options available today, including Square, PayAnywhere, PayPal, and QuickBooks GoPayment. Booking software will help you keep track of appointments and store essential client data.

• Pet essentials – Various sized crates, dog harness seat belts, toys, treats, water bowls, etc.

• Website – Try one of the free website builders or hire a professional, depending upon your budget and skill level.

Many new business owners prefer the peace of mind of investing in a franchise. There are a number of franchising options available, with fees ranging anywhere from $12,000 to $21,000, including franchise fee, setup, training, and orientation.

What are the ongoing expenses for a pet taxi business?

Your greatest ongoing expense will be fuel costs and insurance. If you choose to have an office, plan to budget for standard expenses such as rent, utilities, phone, and Internet. While you’ll likely start out as the sole employee, payroll expenses should be considered before you start building a team.

How does a pet taxi business make money?

A pet taxi business charges a fee for services rendered. Fees are charged by the hour, with additional charges for special services and last minute requests.

How much can you charge customers?

When setting your rates, consider factors like mileage, time per trip, number of animals you can transport at once, ongoing costs, and additional services you plan to offer (e.g. dog walks, trips to the dog park, medication administration). Rates are typically a set amount for the first hour, with an additional charge per half hour after that. Additional fees apply for after hours services, last minute bookings, holidays, and short notice cancellations.

How much profit can a pet taxi business make?

If each transporter was able to take four animals to their appointments and work five days a week at $47 per animal, your business will collect $3,760 per month. Deduct your standard expenses to determine the business’ profit. As you start to gain traction, you can add team members and improve profits.

How can you make your business more profitable?

Consider offering additional services, such as cat and dog sitting (overnight or just daytime), dog walking, picking up pet food and other necessities, and walks to the park. Get to know your client base and learn if there are any retail items they would be interested in purchasing from you.

Day-to-Day and Growth

What happens during a typical day at a pet taxi business?

Your day will vary depending upon the level of service you offer, the type of animal you are transporting, and where you are transporting them to. Some pet taxi businesses offer a whole suite of services, including trips to the park and long distance travel. For the most part, your days will consist of collecting the animal, securing it in your vehicle, and transporting them to the desired destination. Once the client’s pet is transported back home, it may need a walk and some fresh water before the house is locked up.

In addition to caring for clients’ pets, there are administrative duties to handle and phone calls and emails to answer. You or a member of your staff must remain vigilant with the organization’s marketing efforts to ensure the business’ success.

What are some skills and experiences that will help you build a successful pet taxi business?

While a pet taxi business doesn’t require a specific degree or training, there are a number of skills that would prove beneficial. Like humans, each animal you come in contact with will have a unique personality and set of needs. Familiarizing yourself with animal behavior and health will help keep both you and your client’s pet safe. Consider working/volunteering at a veterinarian’s office, groomer, or shelter to gain invaluable hands-on experience.

It is also recommended that you familiarize yourself with the basics in business management. Your business’ brand and growth are reliant on your ability to effectively communicate with both your two-legged and four-legged customers. Strong interpersonal skills and patience are critical. Additionally, show the public and your colleagues that you are committed to safely and humanely transporting each animal by becoming a member of International Pet and Animal Transportation Association (IPATA).

What is the growth potential for a pet taxi business?

Reports indicate the pet industry is a $70 billion industry, promising continued growth well into the future. While this business concept is gaining traction around the world, it is still a relatively new service. The market is not oversaturated and promises significant growth in the coming years. This, coupled with the low startup costs, ensures a profitable business venture for entrepreneurs working their way into the industry.

What are some insider tips for jump starting a pet taxi business?

When developing your business plan, consider the following advice:

• Start out with a small servicing area, expanding further as the business gains popularity.

• Draft a standard contract to be signed by the pet owner. It should address liability issues and explain the terms of service, including: cost, pickup and drop off details, pet’s information and medical history, emergency contact information, and veterinarian’s contact information.

• Before opening your doors, conduct thorough research. Learn your competition’s strengths and weaknesses. Identify areas that are lacking and create your own niche.

How and when to build a team

The quality of your staff is important for long-term success. Complete background checks, run driving reports, and work to make sure your staff is trained properly. Additionally, it is recommended that you retain an attorney to assess the legality of your business and receive guidance regarding client contracts, etc.

Part 2 - Is a Pet Taxi business the right fit for you?

Part 3 - Action plan to launch your Pet Taxi business in 90 days