Operating a Pedicab Business - Licenses and Insurance
A legitimate pedicab business often needs the approval of their local officials before they can operate. Check with your local government before you go too far in your plans. Several pedicab operators didn't do this and deeply regretted it afterwards.
Local Regulations
Local regulations effecting pedicabs vary widely. In many communities, they are completely unregulated, which allows you to do whatever you want. Others treat them as they would automobile cabs, and give out a limited number of licenses. Still others have strict regulations that include things like background checks for all operators, tests, and proof of insurance. These type of regulations can severely hurt a pedicab business if the business didn't plan for it. One unfortunate example of this is found here.
Keep in mind that there may be other interests in your community that may feel threatened by a new pedicab business. Horse-and-carriage businesses and automobile cab operators have, in a few instances, tried to get local regulations written in such a way to make operating a new pedicab business difficult. Be aware of this potential problem, and try to build friendship rather than animosity with other businesses. If you behave in a professional manner and comply with all local regulations, you shouldn't have any problems.
Insurance
Although it is not always required by local regulations, I strongly recommend getting liability insurance if you are serious about operating a pedicab. If you plan to charter out your cab for major events, being insured will make your business much more attractive to potential clients.
Finding affordable pedicab insurance can be difficult. Two sources you might try are McKay Insurance Agency and Stanton & Associates. Both agencies specialize in insurance for bicycle-related businesses.
We hope you've found this information on operating a pedicab business useful. If you have any questions or comments, please email us. Thanks.
