When you think about starting your business, it is especially important to choose the niche where your business talents and skills will be performed at their best providing you with a stable and high income. Why not add some high technologies to this cocktail? We talk about starting a new page in your business by launching an electric scooter business.
Today, e-scooters are among the most in-demand vehicles as they are fast enough for city rides, safe enough to operate without special skills, and eco-friendly. Besides, people even do not need to purchase an e-scooter as there is a more convenient option which is an e-scooter rental service. That’s it! The idea you can take and make your business with ease. Let’s prove it by facts.
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Benefits of the Electric Scooter Business
The first thing to consider is the beneficial part of the electric scooter business. Here are the main benefits you get from it.
- High popularity of e-scooters means you may have customers constantly.
- Fast start as even when you do all the job yourself, you need no more than 3-4 months for launching your business.
- Low expenses. Of course, you need to maintain your scooters and pay managers but it’s less than in any other business.
- High automation. Today, you do not need to communicate with customers or get their payments manually. Everything is automated if you use the e-scooter rental app.
- E-Scooter Rental Business: What Do You Need for It?
So, what do you need to start your electric scooter business?
- Register the company and get permissions for your work as an e-scooter fleet operator.
- Buy the fleet.
- Get the spare parts or a repair station to deal with to maintain e-scooters.
- Get the software to manage the business.
- Launch an advertising campaign to make your future customers know about you.
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Market’s Prospects for E-Scooter Business
Due to the reports of marketers, the forecast for the growth of the micro-mobility vehicle rental market will reach $10.1 billion in 2027.
Today, e-scooters keep second place in popularity after pedal bikes. The situation will be the same in the nearest few years. That is impacted by several reasons in a row:
- The increase in prices for gas and gasoline makes people refusing from cars and gas vehicles.
- The popularity of e-scooters as the alternative to standard scooters and bikes.
- The environmental factor as the number of people who care about environmental protection increases.
- The factor of city jams. E-scooters allow avoid long city jams due to their micro-mobility.
So, you can see that using an e-scooter will increase. But the price for these micro-vehicles is high enough which makes purchasing them not affordable for all the customers. That also plays for your sake as renting an e-scooter is easy and cheaper.
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Profitability of Electric Scooter Business
Now let’s consider the profitability of that business. As analysts say, it is small in terms of absolute income but it is profitable for the fast launching. Talking in numbers, let’s calculate the cost-efficiency of that business taking as the initiatory the following features of the electric scooter business:
- Fleet of 50 e-scooters
- Location – the US
- Average population in the location – 200,000+
As for the time you need to start the business, it will take 2 months if you get an electric scooter franchise and up to 3-5 months if you apply for custom software development. All the expenses for the start of the electric scooter business are as follows:
- The registration of your business – <$1,000;
- Purchasing the fleet – $35,000;
- Purchasing spare parts – $13,000;
- Software development (franchise) – $6,000;
- Charger stations purchase – $30,000.
Overall costs in that way will start from $84,000. Add to this the rental costs for warehouse and office, insurance expenses, managers’ salaries, and taxes, and overall expenses will increase up to $550,000.
Now, what’s about the income. For the fleet of 50 scooters operating for 270 days a year (consider the season of their use from March to November), the income per day per one scooter is $70 on average. That means that each scooter in your fleet will bring you $100,000 per month. And overall income per season can reach $1,200,000. That’s twice higher as you spend.
So, you can see that the electric scooter business is a good idea for the start.