Skip to Content

Startup Cost for a Non-Medical Transportation Business

Non-Medical Transportation Business

It cost an average of $350,000 to start your own non-emergency medical transportation company. You need to register your business; cover legal, insurance, permit, and licensing fees; acquire a facility; purchase vehicles; pay utility bills and wage expenses; launch a website; and cover other costs.

Establishing a non-medical transportation company may prove to be a costly undertaking. This sort of enterprise offers transport services to people who need help getting to checkups, social engagements, as well as other locations.

Although there is a large market for non-medical transport services, the cost of setting up the business could be prohibitively expensive for some business owners.

Obtaining appropriate automobiles is among the significant expenses involved in setting up a non-medical transportation enterprise. Business owners may have to buy additional automobiles to increase capacity, based on the scale of their business.

Furthermore, the costs of gasoline, insurance, as well as upkeep can quickly add up. Recruitment and training of drivers would be another expense related to setting up a non-medical logistics company.

Drivers need to hold appropriate permits and accreditations, as well as undergo screenings and drug tests. Likewise, business owners will have to provide continuous education to drivers to guarantee they possess the requisite skills to offer outstanding client care.

Factors That Influence the Cost of Opening a Non-Medical Transportation Business

  1. The Cost of Acquiring an Ambulette

You would need to acquire or lease ADA-compliant vehicles, as these are wheelchair convenient. A modern wheelchair-accessible vehicle can cost $50,000 to $100,000 or above, based on its dimensions and attributes.

Ambulettes are non-emergency wheelchair vans which are typically used by businesses and facilities to transport both ambulatory and wheelchair passengers.

Ambulettes are the vehicle of choice for nursing homes, adult day care centers, hospitals, transport companies, medical transportation providers, EMS facilities, fire departments, group homes, facilities for the developmentally disabled, and for your business.

When starting this business, you should note that your biggest expense will be the vehicles you need to transport clients in wheelchairs or motor scooters.

Numerous companies sell converted vans, both new and used. If you already own a suitable vehicle, you can have it converted for accessibility.

Access can be provided through a rear-load system or side-load system, depending on the vehicle and your own preference.

Rear-ramp systems are less costly to implement, and they can start at around $13,000 and going up from there, while side-ramp conversions can cost you a few thousand more, and already-converted vehicles cost more again.

You might also opt for accessible buses, which offer the ability to carry more passengers at a time and therefore generate more revenue per trip.

Even if you have substantial startup funds at your disposal, it is recommended that you lease or finance your vehicles or conversions rather than committing your capital to an outright purchase.

  1. Insurance Cost

Insurance is another place you would spend substantial capital. You need to obtain insurance for your ambulette vehicle operators, as well as for your business. You would need liability coverage to safeguard your company from litigations in the case of a collision or injury.

California regulations mandate that ambulette operators must possess both comprehensive general liability and comprehensive auto liability with a combined single limit of $1,000,000 per incident. Insurance deductibles must be at most $5,000; greater deductibles may be allowable if the county’s risk manager grants permission.

The form, as well as the threshold of insurance you require, the size of your vehicle, as well as your location, influences your insurance premiums. Insurance costs could indeed rapidly add up, particularly when you own a lot of vehicles or conduct business in high-risk areas.

  1. Cost of Getting a License and Permit

Licenses are another form of expenses you need to keep in mind while starting your non-emergency medical transportation business. Depending on your location, getting a license might not be so prohibitive. To start, you need to submit your application for a non-emergency transport business license to your county’s emergency medical services agency.

This application must include all applicable profit-and-loss statements, a detailed description of the geographical area within which the ambulette service will do business, a schedule of rates charged, insurance and liability coverage as well as a description of business facilities and vehicles. As of 2011, California licensing fees for non-emergency transport services were $361.72 per ambulette.

  1. Cost of Hiring Drivers

Even if you plan to launch as an owner/operator, you really would need staff as soon as you can. You’ll need at least one extra driver as soon as possible so you can maximize your vehicle’s potential while giving yourself time to manage and promote the company.

As you grow, you’ll need to hire additional drivers to keep up. Each driver should have a clean driving record and pass a criminal background check. Ideally, they should be bonded so your clients can feel confident about dealing with your company.

The people you hire should be personable and presentable to represent your company well. The national average salary for a Medical Transport Driver is $960 in united states. The average wage per hour is usually between $8 to $12. With that, you know how much you get to pay your drivers.

  1. Cost of Marketing and Advertising

Marketing and promotion are major elements of just about any company or organization. To lure clients and expand your company, you must actively advertise your offerings.

The cost of advertising and promotion can differ tremendously depending on the technique employed as well as the intended audience sought. To access prospective clients, you might have to put money into marketing campaigns, digital marketing, as well as referral programs.

  1. Other Employee Expenses

Employees are another massive cost for any non-medical transportation company. To operate your business, you would have to recruit not just drivers but also schedulers and administrative personnel.

Pay packets, perks, as well as tax payments are all examples of staff costs, and the expenses could really rapidly add up, particularly when you have a lot of staff members. Staffing costs vary according to the number of people employed as well as their credentials.

  1. The Cost of Technology

In today’s competitive environment, technology is critical to the progress of just about any company. To operate your non-medical transportation business successfully, you might have to put money into development tools, devices, as well as other software applications.

To expedite your operational processes, you will require GPS tracking devices, dispatch tools, and electronic methods of payment.

  1. Legal Fees

Opening a non-medical transportation enterprise necessitates adherence to a number of legislation and policies. To guarantee that you are obeying all the recommended standards, you might have to communicate with legal experts. Legal fees can largely depend on your company’s sophistication as well as the amount of official documentation needed.

As a result, one of your non-medical transportation company’s significant expenditures would be vehicle costs.

9. Fuel Cost

The next massive cost to take into account when starting a non-medical transportation firm is fuel costs. Fuel prices vary depending on the region, fuel type, as well as economic conditions. As a non-medical transportation company, you might have to take into account the price of repairs and upkeep.

10. Cost of Leasing a facility

On other heavy expense you have to take note of when starting your non-emergency medical transportation business is getting a facility for your office. You indeed need to have a location which you can operate from.

Yes, you can decide to run your business from your home in the meantime, or online, but note that you would have more credibility if you have an office space. Note that most office spaces usually go $3000 for 1,200 square feet. This could increase or decrease depending on your location and what you want.


The cost of opening a Non-Medical Transportation Enterprise can be influenced by a number of variables. The cost of procuring appropriate automobiles, acquiring appropriate permits as well as insurance, recruiting skilled drivers and employees, as well as marketing and promotional expenditures constitute a few of the most important factors.

To know the true capital needed to start a Non-Medical Transportation Business in a specific area, substantial investigation, as well as counsel from industry professionals, is required