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.

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.

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.

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.

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.

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.

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.

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.