A rapid change in public transportation is seen nowadays, with electric vehicles replacing fuel-powered ones.
Over the past few years, e-scooters have taken off and generated a lot of buzzes worldwide. Do you know why this is happening? What makes electric scooters so popular?
This is largely due to its eco-friendliness. There are electric scooters with batteries, enabling them to be driven without burning fuel.
The popularity of electric vehicles such as scooters is increasing, and many people may be considering setting up rental businesses where they rent out e-scooters because they are a green option, electric, have minimal consumption, and are eco-friendly.
Hence, opening up an e-scooter rental company would be the right business concept for addressing and anticipating the future mobility trends in the market even in the future.
Recent statistics in Electric Scooter Business
Before we move on to setting up an electric scooter business? Look at the stats that show the buzz of electric scooters all around the globe.
- Electric vehicles are also generating a lot of demand for electric scooter-sharing apps. Businesses can earn money by renting out their e-scooters for a specific period. Segment revenues are forecast to reach $1588 million by 2023.
- It is also interesting to note that, by 2026, the number of owners will be expected to number in the region 124.8 million, and it is expected that the number of users will grow quite fast shortly.
- Online sales will generate 100% of the revenue generated by electric scooter sharing by 2026. As a result, the rental of e-scooters is among the most profitable businesses.
- There are projected sales of electric two-wheelers to exceed 55 million USD by 2024. Therefore, it can serve as a motivating factor for those seeking to establish an electric scooter business.
The importance of developing an e-scooter rental app
For several reasons, an e-scooter rental company would benefit from an e-scooter rental app.
1. Develop a presence online
In today’s world, most people use mobile apps when they need to access a particular service or want to discover a new opportunity.
Consequently, without an e-scooter rental app, you cannot expose your business to the masses since you cannot reach people interested in renting an e-scooter.
2. Operational simplicity
With E-scooter sharing apps, you can reduce the workload for your business, make your life much easier for your customers and improve the customer experience.
By using the website, users can find out the price of the rides and availability of the rides, and they can book them instantly, only a few clicks away.
With the help of their mobile devices, they can unlock their e-scooters and ride them to their destination, then park them back at the dockyard when they have reached their destination.
3. Pay on-the-go
It is often the case that customers don’t always have the necessary coin on hand when it is time to pay for their e-scooters.
Does this mean they should not be able to use your services? No, of course not!
Using an e-scooter application, your customers can save the details of their credit cards so they can pay in one easy step.
Tips to start e scooter rental business
The idea of running an electric scooter rental business has become very popular because it offers a convenient, affordable way for people to get around town. It is now the ideal time to start a business of this kind, especially since the popularity of e-scooters is rising all the time. The following are some tips that can help you get started:
1. Conduct market research
If you want to figure out how successful your business will be, you must understand the market you plan to serve. You must identify potential customers, investigate your competitors, and determine which laws and regulations will likely affect your business in your local area.
2. Decide on your business model
If you would like to offer scooters to your customers, you will need to decide which type and what kind of pricing structure you would like to offer. Renting a scooter can be done daily, weekly, or monthly, depending on how many days you wish to rent it.
3. Creating a Business Plan
Once you have a good understanding of your business model, you should create a detailed business plan that contains everything you need to know about your business, such as a market research plan, projected expenses, and marketing strategies.
4. Obtain insurance
Investing in a quality insurance policy for your business is crucial to protect yourself against potential lawsuits. As well as any other policies that may be required for your location or state be sure to include liability insurance.
5. Choosing a Scooter
To choose the right electric scooter, you need to consider factors such as size, power, and more to determine which type is best for your needs. Choosing a model to purchase should be based on customer preferences and researching how reliable different models are before spending your money.
6. Get your business noticed
When you have established your business’s physical location, it’s time to begin marketing it to the public. Consider investing in a website, creating social media accounts, establishing a relationship with local businesses, and considering discounting or promoting your products to attract customers.
What is the expected cost of starting an e-scooter rental business?
When you start an electric scooter rental business, it can be very challenging and costly if you have yet to research the costs and fees that need to be paid to rent e-scooters at competitive prices to customers with convenient payment plans.
Launching a scooter rental business is estimated to be close to 150,000 dollars, depending on whether the scooter is purchased from a dealer or rented from a device rental service operator. As a result, only around 80,000 dollars will be used to buy scooters (roughly ten vehicles).
Besides hiring staff and finding a location, there will be other startup costs, such as upgrading equipment, upgrading the electrical system, furniture, installing charging stations (especially the electrical system), business startup costs, taxes, marketing and vehicle fees, and expenses related to launching a business and meeting administrative regulations.
What are the Business Models of the Electric scooter business?
Electric scooters are becoming increasingly popular among people today, and they have had a substantial impact on a variety of industries. The automobile industry is the biggest. As e-scooters become more popular, people want better and more options.
Now let’s explore the different e-scooter business models you can use to start your own company.
1. Rent-Based Model
Rent-based businesses are good models for starting electric scooter businesses. Cities are increasingly adopting it to provide residents with transportation options and improve their quality of life.
2. Subscription-Based Model
Subscription-based e-scooter businesses are another wonderful way to generate revenue and a steady income stream. A recurring subscription model allows users to subscribe to an electric scooter regularly, usually monthly or yearly, by signing up for the service.
As a business owner, you can guarantee your customers will have a positive experience when they use your services. As a result, you can offer various subscription packages to your customers, allowing them to select the right one.
3. Demand-Based Model
Demand-based models rely on mobile apps. With the assistance of an e-scooter app development company, users can book their rides via the app they have downloaded. As a result of this model, the users are provided with a ton of flexibility to choose exactly what they want.
Here we covered everything you need to know about setting up the e-scooter rental business and its cost. To take your e-scooter rental business to the next level, the e-scooter app is crucial. To help you develop an e-scooter app, SynergyWorks is your best bet with the high-class team and techniques to develop the application that stands out in the market. Count on us and give your business a top-class application.