Shuttle services – risk and returns
Risk in shuttle services. The higher the risks the greater the potential for profitability. The risk associated with taxi services can be very costly to the industry. Specifically the risk of accidents, which is the number one concern for shuttle services Pretoria and Johannesburg. This means potential for insurance companies to do business is high for shuttle services providers in Pretoria for example.
Television and electronic space has been invaded by large Insurance companies offering vehicle insurance cover for both private and business
Insurance companies have found a large but delicate market in the form of shuttle services.
The introduction of Uber and Taxify in Pretoria and Johannesburg has presented individuals and small SMEs some space to enter into the transport market, however this comes with risks
Taxify and Uber drivers are prone to violent confrontations with traditional meter taxi drivers, car highjacks and thefts. This is a challenge that insurers should factor in and solve. Some companies have actually opted out of covering Taxify rides and Uber rides, although not many.
In light of these factors, most companies prefer to cover shuttle services Pretoria rather than Uber. However, the large volume of cars operating taxi hailing Apps makes it impossible to completely ignore Uber and Taxify
Role of Insurance Brokers in shuttle service industry
Brokers have been very helpful in providing insights on insurance options available to shuttle service providers.
At Uber Offices and Taxify Offices, brokers’s agents are often seen collecting data and interviewing drivers to get their feel on the environment, and hoping to get business from them through educating them.
Common commercial Insurance cover in public transport:-
Individuals using Uber App
Individuals using Taxify App
More on cheaper shuttle services
Find out more about car insurance here