Cost of Launching Roadside Assistance Business in 2024

Cost of Launching Roadside Assistance Business in 2024


It’s a chilly winter evening you are deserted on a highway with a flat tyre. Do not panic! The roadside assistance truck will pull you with a warm smile. Situations like this will help us to know how important and invaluable roadside assistance is. Many people around the world are experiencing the same problem every day. Have you ever thought of being on the other side of the equation where you will be on the helping side where you can save people’s day by providing roadside assistance to them? Welcome to the guide to start your roadside assistance service. Whether you are an established business or a budding entrepreneur, grab your toolkit and get ready to know how much it costs to start your roadside assistance business.

Table of Contents

What is a Roadside Assistance Business?

Understanding the Scope of Roadside Assistance Business

Essential Startup Expenses for Launching Roadside Assistance Business

How Can a White Label On-Demand Roadside Assistance App Help Your Business?

Wrapping Up

What is a Roadside Assistance?

The company offers help to any car or truck that breaks down or stuck on the highway. The assistance can be in any form like gas, giving a jump start, fixing a flat tyre, or towing the vehicle. These services can be charged by the company that offers roadside assistance.

Understanding the Scope of Roadside Assistance Business

Every one of us will adore the vehicle we own but sometimes these vehicles malfunction and leave us stuck. It is unbelievable that the roadside assistance market is worth 11 billion dollars. This service in the United States has increased to 43,000 in the past ten years. In 2022, the industry made a net income of 10 Billion dollars, which is 1.3 % less than in 2021.

Even though the industry's income is dropping it is likely to grow faster in the future as most of the companies are recovering post-pandemic. The growth drop is likely to be blamed on the pandemic-induced shutdown. The growth of the industry depends on the rise in new car bookings and mileage. If you love cars and know how to handle them then it’s high time to start your own uber like roadside assistance business.

Essential Startup Expenses for Launching Roadside Assistance Business

With an increasing number of cars on the road, this industry is booming in the United States. Starting a roadside assistance company can bring in more money but it requires a considerable sum of money as the initial investment. The startup expense and the capital for business success should be estimated before starting an assistance company. In the upcoming section, you will know the budget for your company.

Please note that the cost estimated can vary based on various factors like place of operation, size, and the services offered. Thorough research and detailed planning will help you to start a roadside assistance company.

Purchasing of Towing Vehicles and equipment

The first crucial step is to purchase the essential equipment that is necessary for towing and other services. The purchasing cost will depend on various factors like model, brand, and age of vehicle, type, and the quality of the equipment.

Depending on the size of the vehicle, type, and features it has the price in the US will be from $50,000 to $150000. The cost will vary for trucks with additional features. The basic tool set will range from $5000 to $15000 and might cost even high if additional equipment is needed. The purchasing cost can be reduced while purchasing used trucks but make sure they work in good condition. This should meet the ongoing regulations and repair costs should be within budget also the vehicle should be in top condition.

Establishment of a Call Center with Necessary Technology

It is important to establish a call center with new technology as it can provide quick and convenient service. This establishment purely depends on the cost of equipment and the technology that is to be used.

Depending on the scale of the company the cost of call center technology and equipment will cost around $5000 to $20000. The essential technology will include a telephone system, computers, caller identification and tracking, software for call routing, and customer relationship management software.

The investment will also include the salary of the call center staff. The average salary of the staff will be $15 per hour. To provide quality service to the customer the cost of training and hiring will also include.

The cost of office space in the call center will vary from place to place and the average cost could be $1000 to $5000 per month. Outsourcing can reduce the call center establishment cost.

Lease or Purchase Property to Store Vehicles and Equipment

The major investment for any roadside assistance company is to lease or purchase a property to store vehicles and equipment. The cost of this depends on the location, condition, and size of the property.

The average cost of leasing a property will range from $2000 to $10000 per month. The cost of purchasing will range from $500,000 to $5 Million.

The other costs might include insurance, maintenance, repairs, taxes, and utilities. In this case, you can easily reduce the cost by sharing the unused space from the property with other business owners. This can be in the form of rent or mortgage payments. This will be a long-term saving and could be the best ROI.

Insurance Policies for Liability and Property Damage

Before starting a business it is necessary to protect the business from potential damage. These damages might arise while providing service to the customers. Some of the popular and common policies are liability and property damage insurance.

The damage caused by the employee or the equipment during service is called liability insurance and it will cost around $500 to $2000 per year.

The damages that are caused to the customer's vehicle during service are called property damage insurance and it will cost around $1000 to $3000 per year.

This will depend on the type of service provided, the number of available employees, and the location of your business.

Employee Salaries and Benefits including Roadside Technicians and Call Center Staff

The quality of the business depends on the staff that are being employed. This industry is labor intensive and in need of skilled technicians and well-experienced call center staff to handle all the situations.

The roadside technicians will cost around $15 to $20 per hour and will be paid extra for working after hours. Employee benefits like health insurance, retirement plans, and paid-offs will cost $5 to $7 per hour per employee.

The salary of the call center staff will be $12 to $15 per hour and their other benefits will cost around $5 to $7 per hour per employee.

Marketing Expenses to Retain Customers

The average marketing budget of small-scale roadside assistance companies is $5000 to $10000. This cost will depend on the location of the company, and the number of marketing channels they want to invest in.

Purchasing and Installation of GPS Tracking Technology for Vehicles

For improving efficiency and customer service in the fleet GPS tracking technology has to be installed. The cost of the GPS tracking technology depends on the size of your fleet and the services that are to be offered.

The cost of purchasing and installing GPS technology for a single vehicle will range from $300 to $500. This will also include the cost of installation and the additional fleet management software or subscription fees that are needed.

Regulatory and License Fees

The regulatory and license fees will vary from state to state and will impact the overall launching cost of the business. The cost of the license will range from $100 to $5000 based on the state and the scope of the business that is offered. Additionally, some states will cost a certain amount of insurance coverage which might also impact the cost of getting the regulatory license.

Legal Consultation Fees for Drafting Contracts and Agreements with Partner Providers and Clients

Before starting the business it is important to have legal binding with the partner providers and the clients for the smooth functioning of the business. The cost of this will vary with the complexity of the document, the legal profession, and the location of the company. The average consulting fee per hour for legal service will range from $100 to $300. The cost of drafting contracts and agreements with partner providers will be around $2500 to $7500. The cost of drafting contracts and agreements with clients will be around $1000 to $2500.

Investing in an Uber-like Tow Truck and Roadside Assistance App development

If you are an entrepreneur looking for potential growth then a Uber for tow truck and roadside assistance app is the best option. Let’s explore some of the reasons for investing in this roadmap to success.

No Entry Constraints

Usually, traditional businesses might have high overhead costs and complex logistics whereas roadside assistance has very less barriers. Physical store is not necessary instead you will need a creative app with skilled labors.


The biggest advantage of this on-demand roadside assistance app is that it starts from the local community and expands its business nationwide using a single dashboard. This will help you to accommodate in the market and to meet the growing demand.


Uber for tow trucks always has room for earnings. Their revenue streams include loyalty programs, subscriptions, and promotions that keep the customers engaged. This income will bring in financial stability and predictability.

Are you looking for Developing an Uber like tow truck app to start your Roadside Assistance Business?

How Can a White Label On-Demand Roadside Assistance App Help Your Business?

Here is how the white-labeled on-demand roadside assistance app helps your business achieve high profitability.

Multi-language support

The Uber clone app for roadside assistance supports multiple languages so that the user can select their preferred language.

Multiple-payment options

Many options like credit/debit cards and in-app payments are integrated with the tow truck app like Uber.

Push Notification

Once the booking is complete the user will get a notification. The information about the booking request and the waiting time of the service provider will be shown to the user.

Referral System

To expand the reach of the app having a referral system is the best option. When the users sign up for their friends or family, then they will get rewards assigned by the admin.

Coupon Codes

The loyal customers can get coupon codes assigned by the admin. This will encourage the customer to use the app very frequently.

Wrapping Up

So starting the roadside assistance business is not easy and will require a certain initial investment and it is a long-term potential business. The above-mentioned are the cost requirements and the process of starting the business. The overall cost will be affected by various factors and range from $50,000 to 500,000. With a streamlined plan and the right business strategy, it is possible to achieve profit from the business within one year of operations. At Unicotaxi we help you to develop a towing app like Uber that can help you in managing your overall roadside assistance business.

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