Electric Bike Franchise Costs in 2022
Table of Contents
The electric bike business develops every year and it is not surprising. Global problems with energy carriers are forcing people to give up their cars and switch to electric vehicles (bikes, scooters, etc).
Statista's analysis implies the electric bike market will double in size during 2021-2027.
For investors, the electric bike business is interesting as it has high profitability, and for a season can cover the basic expenses and at the same time allow to earn well.
In this article we will talk about the electric bike franchise, allowing you to quickly launch an electric bike business with minimal costs and mistakes. We will also break down in detail the electric bike franchise cost, what is included in the franchise cost and what you get for your money.
FOne of the biggest advantages of an electric bike franchise is the price. Let's explain it in numbers. The development cost of a custom e-bike app is about $40,000 and that's assuming you get a team from Eastern Europe, where the average per hour rate is $35-40. If you choose a team from the U.S. or Western Europe, the cost can increase 2-3 times to $ 80-100000. Electric bike franchise cost consists of the first payment for setting up the application and corresponding management software, as well as a monthly subscription fee. The first payment can be anywhere from $5000-7000, which is 10-20 times less than the cost of developing a custom e-bike app. Let's take a look at what is included in the first payment in the electric bike franchise cost.
Electric Bike Franchise Cost: First payment
At the initial stage of the electric bike business launch under the terms of the franchise, we prepare a unique design for the rental e-bikes app, customize the app and the CRM to your wishes and business needs in your country (payment methods, promo codes, ads, free rides, taxation). Let's look at the main activities of this stage and their approximate cost.
|Job list||Job Description||Time spending in hours||Price in $|
|Unique UI design of the e-bike sharing app, business card site||We prepare a unique design of the according to your preferences (brand colors, logo).||40||1600|
|Setting up the functional the e-bike sharing app||We customize the app according to the specifics of your e-bike rental business (payment methods, promo codes, promotions, rates, etc.)||20||800|
|Setting up software (CRM) for managers||We customize CRM to the specifics of doing business in your region (taxes, other expenses)||32||1280|
|Connection of bikes to the app and CRM||We connect your bike fleet to the software to track and manage them.||24||960|
|Publication of the e-bike sharing app on mobile app stores.||We publish an e-bike sharing app in the Play Market and App Store.||16||640|
|Implementation of CRM for company managers||We implement the necessary software (CRM) into your company to manage the electric bike business.||8||320|
|Testing||We test the software itself as well as its synchronization with the bike fleet.||20||800|
Calculating the cost of running an electric bike business is approximate because there are a number of factors that affect the amount of work required. Among them:
- Payment methods integrated into the software;
- The number and model of e-bikes;
- The specifics of doing business in the country (taxes, other costs);
- Additional functionality.
Electric Bike Franchise Cost: Monthly Subscription Fee
The owner of the franchise pays a monthly fee for the use of the electric bike-sharing software (client application and CRM for managers). The monthly fee depends on the number of bikes and ranges from $5 to $8 per bike. The larger the fleet, the lower the rate per bike. To get a better understanding of the monthly subscription fee, let's break down the examples with different companies with different fleets of bikes, which are 30, 50, and 120.
|Number of bikes||Fee per bike||Monthly fee|
From the table above we can see that the monthly subscription fee depends on the number of bikes. This means, that for an electric bike business, which has a fleet of 50 bikes, the subscription fee would be $300 per month.
So we broke down an electric bike franchise cost using the example of a franchise from a RexSoft IT product company. The e-bike franchise cost comes from the first payment and the monthly subscription fee. The first payment could be $5,000 to $7,000, and the monthly subscription fee for the electric bike business, which manages 50 bikes, would be $300 a month.
What does the electric bike franchise cost in 2022?
The electric Bike Franchise cost includes 2 payments: the first payment and the monthly subscription fee. The first payment is $5000-7000, and the monthly subscription fee is $ 5 per scooter.
What does a customer get from the electric bike franchise?
The client gets individual settings up of the franchise software (unique design of e-bike sharing app, customization of software functionality, the right to use the necessary software, technical support).
What factors influence electric bike franchise cost?
The electric bike franchise cost is influenced by the following factors: payment methods that need to be integrated into the software, number of e-bikes and their model, specifics of doing business in the country (taxes, other expenses), and additional software functionality.