How to start an electric scooter sharing (rental) business?

How to start an electric scooter sharing (rental) business?

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Experts predict that by 2030 the size of the micro-mobility market in European countries will reach $ 100-150 billion, and in the United States - approximately twice as much. As for Ukraine and the CIS, the scooter rental business has begun to develop relatively recently, but it is already clear that it has great potential. It is spurred on by the situation with the coronavirus. Due to the risk of infection, many people have increased rental scooters usage. Moreover, the duration of such trips increased by 30-40%.

The kick sharing niche in Ukraine and the CIS countries is less busy than carsharing or bike-sharing, but this is only for now. According to experts, the fullness is not more than 5%. However, services specializing in scooter rental are already actively entering the Ukrainian market. Namely, the Bolt, Scroll, and Kiwi started working last year, and in 2021 - Vzhooh, Zelectra, Bikenow. In total, they have more than 40,000 electric scooters.

Scooter rental service: what is it and for whom

First, you need to figure out what kick sharing is, or scooter sharing, as it is also called. This is an electric scooter rental service that works with a binding to a rental station or even stationless ("dockless"). A few years ago, under this type of business, some meant, among other things, renting ordinary sweat-powered scooters, but now they have been almost completely replaced by electric models.

Payment in kick sharing is made within one of the proposed tariff plans (per day, hourly, or per minute). Rent is done via a pre-installed mobile application, where you need to specify personal information and link a bank card. Money is debited from the account after the end of the rental.

Where and for whom is it relevant?

Basically, kick sharing services in Ukraine and on the territory of the CIS countries are only developed in large cities where you need to travel long distances, as well as in resort centers. Among the main clients are:

  • - people who do not have their own car, and they refuse to use public transport during a pandemic;
  • - young people who lead an active lifestyle (riding on electric scooters is equated to light fitness);
  • - teenagers who do not yet have a driver's license to drive mopeds, cars, etc .;
  • - tourists who are eager to visit as many events, museums, and cafes as possible in a short time during their stay in another city, country.

In Ukraine, electric scooter rental is currently provided mainly in regional centers: Kyiv, Kharkiv, Dnipro, Odesa, Lviv, and several others. Moreover, even in them, one can already feel not only increased demand for this service but also a real shortage of players in the market. If we add to this the return on investment on average for 10-15 months, depending on the location and the profitability from 15%, it is not surprising that more and more interest is shown in this type of business.

How to start an electric scooter sharing (rental) business?

Starting a scooter sharing business: from A to Z

There are several critical points on the road to starting and promoting a kick sharing business. Let's consider them in more detail.

Business registration

In order for the scooter sharing service to work in the legal field, first of all, it is necessary to register a company under the requirements of local legislation (for instance, according to KVED in Ukraine, this type of activity belongs to the section “Rent, leasing, rental”).

Purchase of electric scooters

This is one of the more costly parts of the kick sharing business. In particular, Bolt said they have more than 5,000 scooters. The calculation of costs is simple: one item costs an average of about $ 500. Plus, you need to add about 30-40% more to this amount for customs duty, VAT, and excise duty on imports.

Experienced owners of scooter services recommend when choosing an electric scooter to pay attention to models with wheels of 8-10 inches, a good battery (its charge should last at least 25-30 km), high-quality shock absorption for a smooth ride. When planning your purchasing budget, be sure to consider the cost of maintenance in the city of location. On average, the "life" of one rental device is 60-90 days, then repair or replacement is required.

What is more, consider the fact that not all scooters can be used for sharing. You need a "smart" filling to determine the geolocation of the device, transfer data from it to the Network, and vice versa. Only such electric scooters can be equipped with specialized kick sharing software.

Mobile app development

Without software, the user will not be able to rent an electric scooter via kick sharing. That is why it is especially important to pay attention to the quality of the software, its functionality, as well as usability. The development of a scooter rental app is a task that is best entrusted to specialists who have experience in this area or close ones (logistics, car rental, and the like).

The main functions of such a product are:

  • - availability of all necessary information about the client;
  • - history of their trips and reservations;
  • - available payment options and pricing;
  • - free vehicles and their location;
  • - current promotions.

Some IT companies are ready to offer ready-made software for electric scooter rental services. This is the optimal solution. In addition, the customer can personally communicate with the contractors and provide them with a statement of work for software development and the provision of a range of services.

Service promotion on the Internet

Creating your own application and placing it on Play Market and App Store (or on created accounts) is not enough for a business. To attract the interest of users, it is necessary to popularize the service for the rental of electric scooters on the Internet.

You are able to use various methods to promote. One of the most popular is to launch a one-page website (landing), which provides all the necessary information about the features of the scooter sharing app, its functionality, and you can also click a button to download the software to your mobile device. To attract potential users, contextual advertising is used. In general, you can try any marketing tools for promotion: from a brightly decorated station to distributing leaflets on the street. The main thing is that it was initially calculated correctly by an experienced specialist.

Quazom service developer

You have an opportunity to order software development services for the kick sharing service at Quazom. This Ukrainian IT company has been specializing in the development of complex solutions for business for over 11 years. The organization points out as the main advantages the following ones:

  • - full ccycle of software development. Experts offer a full range of work, from prototyping and working with the SoW, ending with the promotion of the service after placing the software on the Play Market and App Store.
  • - the company operates officially and thoroughly knows the wishes of the market and the requirements of local legislation.
  • - a formal agreement is concluded with the customer, in which all the terms of cooperation are clearly spelled out.
  • - the development uses advanced solutions and many years of experience.

Quazom's arsenal includes IT solutions for ordering cargo taxis, managing heat pumps, etc. The team of professionals even helped the Vzhooh, Ukrainian kick sharing service. This company started working in June 2021. At that time, it was already the sixth electric scooter rental service in the country. Three months later, the organization opened representative offices in Lutsk and Rivne. This is active growth of the business - and all thanks to an integrated approach.

Quazom took care of the development and launch of comprehensive software for Vzhooh. It is a server and mobile app introduced to Android and IOS devices. The software can be downloaded from the Play Market and App Store official app stores. The functionality is at a high level, but at the same time the interface is intuitive and simple, so it will be possible to deal with it even without the help of a technical specialist of the company (support). The software makes it easy to find the nearest scooter available for rent, pay for services, and view the trip history. Judging by user reviews, the software works flawlessly.

Other completed Quazom products can be viewed directly on its official website in the "Portfolio" block. The company declares that it is ready to implement any project and will provide a range of services at an affordable cost. In addition to development, professionals will help with the promotion of the scooter sharing service on the Internet. They will quickly create and fill the landing page with all the necessary information, take care of increasing traffic. Quazom also has partnerships with a Chinese manufacturer of electric scooters suitable for rental service. The company will help with the selection of devices, if necessary.

Launching a promising business

If you want to start a promising business, you should not postpone this issue for better times. As time goes on, competitors can occupy a promising niche. You need to take advantage of the fact that it is not full yet. Now there is a good opportunity to make money on scooter rental by opening a scooter sharing service in your city as the first.

By contacting Quazom, you have an opportunity to order a full range of services at an adequate price so that you will be able to get a ready-made business in a couple of months. Still, have questions? Details of cooperation and contact numbers for communication with consultants can be found on the official Quazom website.

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