How To Start An Airport Shuttle Business In Nigeria

Are you the one who is hesitant to commit to a typical mobility business concept? You are not by yourself. Following the predetermined guidelines of conventional business setup methods might be challenging for many people. And this makes it possible to more effectively validate your ideas.

For an early start, some factors should be taken into account because they might serve as the foundation for your company. And most of the time, people don’t take into cognisance some potent factors that might affect the business, nor do they base their ideas on originality that can lead to the growth of the company.

That is why it is important to not have “one eye closed” before going for any business initiative. Proper planning, gathering all the necessary information, and having the essential capital are some of the core steps that drive growth. But in actuality, for any successful business to take off, you would have to outweigh the risks involved, and if the risks are ones you can forgo without much problem, then you may decide to continue with your business idea.

You’ve probably heard how profitable airport shuttle service is, and you’d like to get into it, but you have no idea where to begin or how to get started. This guide will inform you about all the necessary information that is attributable to the business, going from building a business plan to highlighting the risk factors that persist and cogent market strategies that can boost the business

An Overview of the Business of Airport Shuttle Service

People can be transported to and from the airport to their desired location using an airport shuttle service. Business travellers, group travellers, family travellers, and lone travellers frequently favour this kind of mobility service. The designated driver picks up and drops off the passengers at predetermined locations. Each route has a number of stops that allow passengers to be dropped off at the closest location.

The airport shuttles are roomy enough to handle travellers’ bags, unlike other forms of public transportation. Airport shuttles take passengers from the airport to their residences, hotels, or the spots where they park their cars. Business travellers, parties, families, and lone riders all use airport shuttles. The driver picks up passengers at a prearranged spot and delivers them wherever it is necessary; normally, each route has no more than two stops.

Steps on How To Start An Airport Shuttle Business

• Inquiry

The first rule for starting this business is that you must have an airport in mind where you would want to offer your shuttle services. It would be reckless if you didn’t take this into account. This decision would be wholly based on your location.

Nigeria has a total of thirty-two airports operational in the country. If you are based in Lagos, the Murtala Muhammed International Airport would be a good starting point. It is advantageous if you have a general idea of things and how they work.

It is recommended to visit the airport and conduct a survey on how the shuttle service operates; if possible, facilitate with the drivers and ask questions to see how things run; and also consult the appropriate authority to learn if private individuals are granted the right to carry out shuttle services within the airport and how you can go about it.

• Create a Business Plan

A schematic of your business idea’s value proposition will be provided in your airport shuttle business plan. Along with your target market, marketing methods, and business expansion plans, it should also incorporate your company’s goals, values, mission, and vision.

The business plan will give you a general overview of how to approach the business. This would take a phase in evaluative review; the essential cost of the whole business vis a vis your starting capital, your respective target audience, and what is the least amount which a client is required to pay. Which travel routes to and from the airport are the most popular?

Do you know what the recurring costs for the airport shuttle service are? This might seem like a lot of things to project for, but it barely scratches the surface of the detailing that comes with the business. Most would likely hire the services of a professional if the shuttle service was to be on a large scale, as opposed to a one-man business.

If that is not the case, you can gather all the information yourself through research and by facilitating with other shuttle drivers you come into contact, to gain as much knowledge as you can so you may outweigh the risks and see whether the business is feasible for you or not.

• Capital Requirement

As earlier mentioned in the business plan, starting capital forms a vital part of any business. Your capital must be able to cover all essential costs for the business for at least three months. This is because it might take quite some time to gain any substantial profit, and you will have to bear most of the burden from maintenance of the vehicle, and if you have any staff under your employment, and other miscellaneous expenses such as licensing fees, insurance, and other warranties.

It is advised that you have a starting capital of not less than seven hundred thousand naira (N700,000) and this amount is based on whether you want to start on a small scale. It would be beneficial if you already had a personal vehicle which you would use as the shuttle, but if this is not the case, you would have to rent/lease or buy a vehicle, to begin with.

Leasing and renting, in particular, would require significant funds because you would have to pay in instalments regardless of whether you made profits or not. Buying is a good option, but your starting capital would have to increase immensely more than what was earlier proposed.

• Vehicle Requirement

For your airport shuttle business to really begin, you would need a car or van. If you wish to start on a small scale, one vehicle should be enough to begin, but on a larger scale, it is advised you have at least three vehicles. In particular, if your shuttle service is located inside the airport grounds, certain buses are needed to operate as shuttles inside the airport. Therefore, you must obtain the necessary car specifications from the airport administration.

If you wish to operate a shuttle service from outside the airport, you should buy the types of vehicles that would appeal to your target clientele. There are only certain types of cars that are permitted on airport property if you plan to operate your airport shuttle business there. When you go to meet with the airport officials, they will inform you that not just any car can provide shuttle services within airport grounds.

So, try to get this fixed quickly. It is really crucial. For this business, you should probably own a brand-new or excellent sports car. If you plan to operate your airport shuttle business beyond the airport’s grounds, you might not need high-class vehicles. However, whether you buy or lease, it is best to invest in a well-maintained one. It must come with standard air-conditioning and radio, and it is essential that it has a GPS system. Another important thing to highlight is that your vehicle must have the required third-party insurance coverage, and you would need to add this to your monthly costs.

Carmart.ng is the perfect automotive market for you if you wish to get affordable and classical cars for your airport shuttle business. We have a large collection of cars and other automobiles that you can choose from.

• Licenses and Permits Requirement

The Federal Airport Authority of Nigeria (FAAN) and other certified airport facilitators in Nigeria serve as the governing authorities for airport activities in the country. These organizations, as well as the airport authority where you plan to operate your shuttle service, require that you get licenses and permits that are necessary to be able to start the business.

It is imperative you inquire about the cost beforehand, either from one of the officials or the driver himself, to ensure you have the prospective amount required. There might be some other costs fundamental in getting the necessary license or permit. You would have to have this in mind when getting the license.

You must take note of other documents required for this application process and the time that it might take to get approved; you must have a valid driver’s license, car insurance, and other documents deemed appropriate before you may begin. If you wish to start a business on a large scale, your driver must satisfy all these requirements.

of drivers.

• Other Requirements

You may wish to establish your shuttle service with a website and social media page. This makes you more visible to the public, and it’s a way of marketing. Although the launch of a website may make you incur some costs, it would be beneficial in the long run. Through the website, you may make it possible for people to book your services beforehand and for them to be able to track your car within the specified area to meet you. The inclusion of this measure proves a sustainable marketing strategy that can help your business grow adequately.

How To Make Your Airport Shuttle Business Profitable:

Facilitate with other businesses such as restaurants, hotels, and parks, to ensure you are close to their vicinity so as to utilize the opportunity to get passengers. 

Ensure within the airport you wish to operate that you familiarize yourself with some routes or popular places that passengers may visit. Also, ensure you have a good GPD system that would aid you in locating such places.

If possible, build a network with the airport authorities to ensure you are recommended whenever a prospective passenger wishes to use your services. 

Conclusion

This guide will give you a general idea of how to begin the airport shuttle business. Your business plan is a good starting point for determining the feasibility of the business for you and whether the starting capital you have is sufficient to comfortably begin on a small or large scale.The airport shuttle business is very lucrative, but you would have to pay attention to every detail that would make the operation of the business possible.

Frequently Asked Questions