In the era of mindful consumption and environmental protection, lots of people refuse from using cars in favor of more eco-friendly electric transport. And e-scooters are among the top-rated types of that transport. Besides, it is not necessary to buy electric scooters to use them as the services of e-scooter rental are more convenient for city residents.
That is the reason for new entrepreneurs to consider how to start their electric scooter business. That’s what we are going to tell you in our article. Let’s define how to start an electric scooter business and make it profitable.
Why Is Electric Scooter Business Profitable?
Today, there are many factors in favor of choosing an e-scooter-sharing business if you want to start an entrepreneurial activity or expand your business by adding a new direction.
- According to analysts, the scooter-sharing market in the US will grow rapidly. If in 2019 the market share of this direction was 60.6 million dollars, by 2028 it is projected to grow by 20%.
2. So far, there is not too much competition in this niche, and the demand for e-scooter-sharing services is growing.
3. This business has a profitability of 50% per year, which makes it one of the fastest paybacks.
Agree, these are worthy arguments, but how to start an electric scooter business? We have some useful tips from 4Sharing, the company that launched the market and provides e-scooter-sharing businesses with effective software.
- Main Steps on Your Way to the Successful Start of Electric Scooter Business
There are some steps you need to make to get your e-scooter business started easily. Here they are!
- Start with the registration of your business. The faster you get all the papers ready and send them to government authorities, the easier it will be to start. Do not forget to open a bank account for your company.
- Buying a fleet is the second step. You can get new e-scooters or choose refurbished devices if you have a reliable supplier. Besides, better think out what spare parts you may need and order them in advance to provide an urgent repair for your scooters if you need it. Do not forget about purchasing charging stations too.
- Hire the staff. You may need at least a couple of operators to maintain the workflow. Besides, you may need a mechanic who will be responsible for the maintenance of your fleet and a financial accountant. Some of these positions can be outsourced.
- Renting the office and the warehouse is also an important part of preparations for the start of your electric scooter business. At least, you need to keep your e-scooters somewhere as well as their spare parts. And you need to manage working space for operators.
- Get software to manage all the processes. This means you need both a CRM to manage your business and an app that will allow your customers to rent a scooter easily. If you want to reduce costs, do not get ready-made software. Better apply for a franchise. This solution offers higher customization and electric scooter franchise cost is lower than buying on-shelve software.
- Think about marketing. You need to make your customers aware of your services. So, advertising is a must.
After you complete all these steps, you can easily say that your business started successfully. Good luck with it!