Jun 18th 22

How to Start an Electric Scooter Rental Business in 2022

Table of Contents

One of the most successful types of seasonal business can be considered an e-scooter rental. Escooter business brings excellent profits and enjoys great popularity. At the same time, it will be very easy for an entrepreneur to work in this field, as it is very simple to start your own electric scooter business, although it will certainly require some investments.

RexSoft company has been in the electric scooter business for 5 years since 2017. And although the main focus of our activity is e-scooter app development, we have already managed to accumulate an exhaustive amount of knowledge in this industry. And now we are happy to share our expertise with you and help you start an electric scooter business. In this article, we will tell you what is required for the electric scooter business, how to deal with the scooter sharing app, where to get scooters & spare parts, and how to manage them properly. Also, you’ll understand what kind of staff is needed and most importantly what is the profitability of the electric scooter business? Let's do it!

What is required for an electric scooter business?

The most important thing during electric scooter startup is the scooters themselves. To begin with, you need 10-12 of them, and in the early stages of organizing your electric scooter business, you should find a reliable e-scooter sharing app supplier of these vehicles. They can sell electric scooters, and sometimes even rent or buy on credit (it will be repaid fairly quickly). In addition to e-scooters, you will also need scooter rental software to track and manage them.

Another equally important step is the selection of staff, and the electric scooter business requires quite a big team to maintain. You need managers and technical specialists to monitor the condition of scooters and carry out their repair and maintenance. Let's take a closer look at these aspects.

What App is needed for the electric scooter business?

Quality software is the heart of your electric scooter business. It's in your best interest that it beats smoothly and without any delays. It is also in your interest to have all the necessary features in such an application. And it’s even better if you’re able to add new features when you need them or when you are in dire need of competitive advantage in a heated market. Let's break down this aspect of the electric scooter business in more detail.

e-scooter app development consultation

To get free tech consultation on the e-scooter app. The RexSoft company has been in the electric scooter business for 5 years since 2017. Our specialists are ready to share their solutions which will make your business successful.

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Necessary Electric Scooter App Functionality

The required minimum for an app for an electric scooter business is as follows:

  • GPS
  • QR Scanner
  • Smart Lock

So, the basic functionality of an electric scooter business app is the ability to track the movement of the vehicle, a QR code scanner to unlock the device via smartphone, and a smart lock to lock it after use. In addition, each application should have a convenient admin panel for users and the administrator of the service. It includes the following functions:

Main E-scooter App Features

User panel

  • registration/authorization
  • map showing scooters
  • possibility to view information about the status of the scooter and its rates on the map
  • scooter rent for the trip
  • personal account
  • travel history
  • balance (refill, cost history)
  • promo codes
  • referral program
  • messages (incoming notifications and mailing)
  • settings (password, beginner mode with limited speed)
  • about us (info page and feedback form)

Admin panel

  • user management (editing, blocking for a period of time with a message to the user)
  • managers (setting up staff rights)
  • scooters (add devices, edit, view travel history and rent a device)
  • trips (travel history)
  • territories (creation of territories for separate cities, districts of cities, creation of movement zones in these territories)
  • batteries (scooter battery management)
  • battery replacement (accounting for battery replacement work by the staff)
  • promo codes (creation)
  • messages (mailing list creation)
  • editing the text content of the application
  • settings
  • franchise (feedback)
  • command history (login)
  • statistics

We have already reviewed the necessary functionality required for the application.

Now let's move on to reviewing the development possibilities and how much it costs.

The cost of developing an app for the electric scooter business

So how much does it cost to develop a solution for the e-scooter business? Well, it directly depends on what you need and the service provider. For example, RexSoft offers 3 types of e-scooter sharing app development solutions:

Electric scooter
franchise

You have an opportunity to launch a scooter share business within 2 months due to the franchise by RexSoft. You don't need to develop an e-scooter rental app - use our ready-made solution which is easily customized to your needs and pay for the franchise from $5 for a scooter per month. E-Scooter Franchise Cost includes basic payment for setting up the application and monthly payment for app use.

  • Development of a unique design of the app.
  • Customizing the app's appearance.
  • Customizing the app functionality.
  • Integration of payment systems in the app.
  • Setting up the scooters to work with the app.
  • Publishing the app in the app stores.
Time requirements:

150-200 hours + support

Cost

From $5 for a scooter per month

Customization
of the Ready Solution

RexSoft specialists have developed a ready-made e-scooter sharing app, which has the ability to be customized to the needs of the client.
Such an e-scooter app is cross-platform (works on both Android and iOS). The creation of this e-scooter solution includes the following work:

  • Development of a unique design of the app.
  • Customizing the app's appearance.
  • Customizing the app functionality (for users/administrators).
  • Integration of payment systems in the app.
  • Setting up the scooters to work with the app.
  • Publishing the app in the app stores (Android, iOS).
Time requirements:

300-600 hours

Cost

$11000-22000

Custom App
Development

Turnkey e-scooter app creation from scratch. We use Flutter and Node.js technologies for development. The choice of this particular tech stack allows not only to develop cross-platform software solutions (Android, iOS) but also to ensure the stability of the work, no matter how high the load on the server is. The creation of this solution includes the following work:

  • Creating prototypes, and unique design.
  • Development of a custom app.
  • Development of custom app functionality (for users/administrators).
  • Integration of payment systems in the app.
  • Configuring the scooters for the app.
  • Publishing the app in the app stores (Android, iOS).
Time requirements:

1000-1300 hours

Cost

$35000-45000

Which scooters are suitable for electric scooter business?

The most popular brands in the electric scooter business are Chinese brands. Among them, there are ready-made offers, where after the purchase it is enough to connect a SIM card.

When choosing, it is worth paying attention to the battery capacity. The better the battery, the more distance the vehicle will be able to travel without charging. A low-capacity battery can cause a sudden stop, which will negatively affect the reputation of the company. It is better if the charge will be enough for a distance of 25 km.

Technology

The inner workings of the electric scooter should have Cloud Monitoring support and/or IoT technology. These technologies allow the vehicle to communicate with other devices and monitor its status in live mode.

In addition, the electric scooters must be configured to alarm administrators about a hard fall (breakage) and reports of unauthorized movement (movement outside the allowed route, theft of the scooter).

Physical features of Scooters

  • An electric scooter's power should start from 500 watts. A person with a weight of 200 lb/ 90 kg must be able to climb a hill of 15 degrees. This is important for hilly terrain. If you choose scooters with insufficient power, users will not be able to get to the necessary places on them and the reputation of the brand will be lost (users will throw the scooters in the middle of hills).
  • Vandal-resistant.
  • Waterproof.
  • The suspension must be able to withstand a load of 120-150 kg.
  • Replaceable battery. The charged scooter has to work for 2-3 hours of active riding. For the scooter to continue working you need to replace the batteries 3-4 times a day.
  • Theft protection. Difficult to access the battery and program access to traction charging.

What parts are needed for Scooters

You need to stock up on parts for electric scooters to keep your business running smoothly. The parts fund is a must and you need to consult with the factories, which parts have high wear and tear and buy them before you start the e-scooter business. In particular, you will most likely need:

  • Replacement batteries. For 50 scooters, 120 batteries are required.
  • Headlights.
  • Stops.
  • Wheels.
  • Humpers.
  • Brake systems.
  • Other parts with high wear and tear.

The order is calculated by the necessary set of spare parts and consumables for the appropriate number of scooters. If we are talking about a rental business, these quantitative indicators and information is calculated by the factory engineers and the experience of customers. In addition, there is a possibility to order any spare parts additionally, the factory provides maximum cooperation and assistance to all customers. Ordering spare parts is not a problem.

How much do scooters for a scooter sharing business cost and where do you get them?

The Chinese market for electric scooters is the largest in the world and provides a large selection of electric scooters and scooter parts. You can buy them yourself or you can rely on us.

RexSoft cooperates with many electric scooter manufacturers and has representatives in China who will help you in choosing scooters and arrange delivery to any country in the world.

Get advice on choosing scooters

Order electric scooters and app for their management now. RexSoft is your reliable partner for creating successful businesses.

CREATE AN ELECTRIC SCOOTER BUSINESS

Example of scooters, perfect for a scooter sharing business

Let's take a concrete example of an electric scooter model that's great for starting your own fleet of vehicles. Our clients nicknamed the model of the Shenzhen X890 scooter "armored car" for its technical characteristics and reliability in operation.

Shenzhen X890

Features Values
Rated power (with Hall): 500w
Peak power 800w
Battery 36V 10.4Ah
Tires 10 inch solid tires
Top speed 25KM
The farthest battery life 35-40KM
Types are heavily dependent on rider's weight, road conditions, and usage habits
Maximum climbing degree 20°
Maximum load 120kg
Battery domestic detachable
Charging time 4-6 hours
Net weight 23kg (including battery)
Gross weight 27kg
Waterproof IP55 (all body), IP68 (battery control pack)
Body material aviation aluminum alloy

How much does Scooters cost for Scooter Sharing Business

Shenzhen X890 price in China is $450-550. The price depends on the order quantity (the bigger the order, the less the cost). Add to this amount the cost of customs clearance, taxes, shipping costs, other consulting costs, and intermediary costs. These costs will vary from country to country, so the cost can go up to $650-800 for 1 Shenzhen X890 scooter.

Staff

Let's talk about personnel for the e-scooter business. Keep in mind that some roles in this list can be combined. We provide an estimate of the number of staff needed to maintain 50 scooters smoothly.

2 Chargers with cars (cargo van):

  • replace dead batteries
  • transport scooters

1 charger at the office:

  • Arranges battery charging
  • discovers places where there is a high demand for scooters, plans scooter parking lots.
  • Repairs scooters

Scooter manager

  • Support service
  • Responds to queries from users (for example, our app has an "Ask questions" section where the customer can ask the support service anything in real-time).

What is the profitability of the Scooter Sharing Business?

From an economic point of view, e-scooter rental is a profitable business. From the point of view of absolute income numbers, it’s rather small.

Let's try to roughly calculate the profitability of the e-scooter business. However, keep in mind that this calculation does not take into account many factors, because it all depends on the country:

  • Taxation
  • Parking fees for scooters
  • Depreciation payments
  • Staff salaries
  • Cost of scooter rental fees
  • Competition
  • Insurance

Profitability calculation is calculated on the example of scooter sharing business with 50 scooters. From the experience of our clients, we know that 1 scooter can bring $20 a day. For this example, we took the weather conditions in the US, where the temperature allows the scooter sharing business to work from March to November (270 days). Temperatures must be above 0. We subtracted 15% from the season for the scooter sharing business, which are days with inclement weather (rains). So we have 230 days, and for one season 50 scooters can bring $230000.

But this is net revenue. To calculate the income you need to know how much this business requires expenses.

Basic costs:

Costs Total,$
50 scooters 40000
Spare parts fund 14000
Scooter Sharing App Development 15000-45000
All together 69000-99000

As you can see, scooter sharing business in one season can cover the main costs and still allow you to make good money.

***

E-scooter business is quite easy to create. You just need a few scooters, a quality application, and a good location to get a flow of customers. The key is to have the right people to help you figure it all out and make your business truly competitive. Contact RexSoft now and we will work with you to make your city's residents more mobile and you truly successful.

FAQ

What do you need to start an electric scooter rental business?

To start an electric scooter sharing business needs software designed for customers (app) and for company managers (CRM), scooters fleet and spare parts for them, as well as staff.

What are the main electric scooter business expenses?

50 scooters with the necessary spare parts can cost $ 50,000, electric scooter software development can cost $ 40,000-70,000. The e-scooter sharing franchise from RexSoft allows you to reduce the cost of developing the necessary software by 10-20 times.

How do increase the profitability of the e-scooter Rental Business?

To start a scooter-sharing business it is better to use ready-made software that allows you to launch a business quickly (1-2 months) and reduce development costs by 10-20 times. Modern analytics modules help identify routes that bring revenue to the company and ones that do not. Due to the correct placement of scooters on the map, the income of your business can increase many times over. The E-scooter sharing franchise from RexSoft will help you with this.

Oleksandr Kryvotsiuk

HEAD OF MARKETING AT REXSOFT
I am a SEO expert and a Full-stack internet marketer. I have been helping small and medium-sized companies in various niches to increase organic traffic, attract more potential customers and improve the return on advertising investment since 2013.
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