Tow Truck App: Start a Roadside Assistance Business in 2027

If you are already running a taxi fleet in the US, you understand demand, dispatch, and drivers.This existing knowledge can lead to a second business that then supports taxi work instead of replacing it.

A Tow Truck App allows you to provide towing and roadside help in the same way customers book a ride, through a simple app instead of calling a dispatcher. For taxi owners and CEOs looking to expand beyond rides, this is a practical way to create a new revenue stream in 2027.

Why Are US Taxi Owners Moving Into the Tow Truck Business?

The data says it all. The automobile towing industry in the United States is valued at about $11.8 billion in 2026, spread across nearly 40,000 businesses nationwide. Additionally, the overall roadside assistance market is growing at about 5% a year, as more drivers expect quick, app based help instead of waiting longer.

For a taxi owner, this demand fits perfectly with existing operations. Drivers who sit idle between rides can take on towing or roadside jobs instead. Your dispatch skills, driver management, and customer service for taxis apply just as well to towing; the main difference lies in the type of jobs coming through the app.

Step 1: Understand the Tow Truck Business Model

Before you start building anything, it helps to know what services fall under this business.

Towing typically divides into light-duty work for cars and small vehicles, and heavy-duty work for trucks and larger vehicles. Roadside assistance includes smaller jobs that may not need a full tow, like jump starts, tire changes, lockouts, and fuel delivery for out-of-gas cars.

Revenue can come from charging per job, a fixed service fee, plus a per-mile rate, or through membership plans similar to how some drivers already pay a yearly fee for roadside coverage. Licensing and insurance rules vary by state, so check with your state DMV or transportation authority early, before committing to equipment or hiring.

Step 2, Choose the Right Tow Truck App for Your Business

An Uber-like Tow Truck App needs three main parts: a customer app for requesting help, a driver app for accepting and completing jobs, and an admin dashboard to manage everything.

This approach is different from simply giving drivers a phone number to call. An app-based system automatically captures the customer's location, shows an estimated arrival time, and keeps a complete record of every job, without anyone needing to write details by hand.

What Should a Roadside Assistance App Include?

Some features are more important than others. Live GPS tracking allows customers to see their truck approaching in real time, just like tracking a ride. Automatic driver matching sends jobs to the nearest available truck, rather than relying on a dispatcher to make calls. Initial pricing, even as an estimate, builds trust with customers already having a stressful day. In-app payment means no one has to fumble for cash on the side of the road.

Also Read: Fleet Utilization Rate Explained: The Key Metric Every Car Owner Should Track

Step 3: Set Up Smart Dispatch with Tow Truck Dispatch Software

Manual phone dispatch works, but it doesn’t grow easily once you’re running more than a few trucks.

Tow Truck Dispatch Software automatically assigns jobs based on driver location and availability. This reduces response times and cuts down on the back and forth of phone calls. Customers receive live updates on their phone instead of having to call back to ask about the truck’s location, allowing dispatchers to focus on exceptions rather than manually routing every single job.

Step 4: Price Your Services and Build Revenue Streams

Pricing usually works best as a base call-out fee plus a per-mile charge for towing, with roadside jobs like jump starts or lockouts priced as flat fees.

For example, a flat $75 call-out fee plus $5 per mile for a 10-mile tow totals $125 for that single job. A roadside job like a jump start might carry a simple flat fee since there is no towing distance involved. Completing a few of these jobs a day, per truck, can add up quickly compared to having a truck sitting idle.

Step 5: Launch, Market, and Scale Your On-Demand Towing App

Once the app and dispatch system are ready, growth mostly depends on visibility and trust.

Partnering with local auto repair shops, insurance agents, and your existing taxi customers provides an early base of referrals without needing heavy advertising. Reviews after each job help build trust that encourages drivers in need to choose your app over a generic search result. As jobs increase, a solid Uber-like truck management software system becomes important as well, giving you insights into driver performance, busiest hours, and which services generate the most revenue.

Simple Takeaways You Can Use

Start with the vehicles and drivers you already have, as idle time between taxi rides is often the easiest time to be used for towing or roadside jobs.

Confirm your state's licensing and insurance requirements beforehand, since these vary and can influence your launch timeline.

Track your job types from day one tow, jump start, lockout, fuel delivery so you know which services deserve focused marketing.

What Should You Watch Out for Before Launching?

Some challenges often arise. Demand for roadside help improves during storms, cold weather, and holiday travel, so you need enough trucks ready for busy periods without paying for idle capacity the rest of the time. Insurance and liability can become more complicated than standard taxi coverage since towing requires handling someone else's vehicle directly. Competition from insurance backed roadside programs, which are already included in many US auto insurance policies, means your pricing and response time need to be genuinely competitive, not just convenient.

How UnicoTaxi Fits Into This

UnicoTaxi is designed as a flexible dispatch and fleet platform, not just a taxi-specific tool. This makes it a practical base for launching an Uber-like tow truck and roadside assistance App under your own brand.

The same engine that assigns taxi rides to nearby drivers can assign tow and roadside jobs to nearby trucks, with live tracking, automatic dispatch, and a driver app included. For a taxi business wanting to expand into a Roadside Assistance App without building software from scratch, UnicoTaxi shows how a connected, multi-service dispatch platform works in real time.

Final Thoughts

Starting a tow truck and roadside assistance business does not mean abandoning what you already know; it means applying those skills to a second, additional source of income. The demand is real. The US towing industry alone is worth nearly $12 billion, and you already have the skills in operations, dispatch, drivers, and customer service that taxi owners need.

Ready to explore launching your own Tow Truck App? Contact UnicoTaxi for a free consultation and live demonstration.

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Frequently Asked Questions

1. Do I need a separate app for towing, or can it run alongside my taxi app?

It depends on the platform. Some providers, including UnicoTaxi, can support both taxi and towing services from one connected system, so you won’t have to manage two completely separate platforms.

2. How much does it cost to start a tow truck business with an app?  

Costs vary based on how many trucks you start with, whether you buy or lease vehicles, and which software provider you choose. Getting a direct quote based on your fleet size gives you the best way to plan a budget.

3. Do I need special licensing to offer towing services in the US?

Yes, in most states. Requirements differ by state, so check with your local DMV or transportation authority before launching to understand what licenses and insurance apply to your area.

4. Can I start small with just one or two tow trucks?  

Yes. Many operators start with one or two trucks, often utilizing available taxi capacity, and then expand as demand and reviews grow.

5. What is the difference between a tow job and a roadside assistance job?  

A tow job involves moving a vehicle from one location to another. Roadside assistance covers smaller fixes done on site, like a jump start, tire change, or fuel delivery, which do not require moving the vehicle at all.

About the Author

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Bala

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Bala serves as a Digital Content Specialist at UnicoTaxi, crafting comprehensive guides and resources tailored for taxi business owners and entrepreneurs. Drawing on extensive experience in mobility and transport tech, he transforms industry insights into practical, actionable strategies for launching, scaling, and thriving in taxi operations.