Electric Scooter Franchise Cost by RexSoft in 2022
Table of Contents
The electric scooter sharing business has more and more progress every year and it isn’t weird. Problems with energy sources caused by the war in Ukraine in 2022 make people give up cars in favor of electric means of transport. For investors, the electric scooter business is interesting because it has high profitability and during the season this business can cover the main costs and at the same time allows the owner to earn well.
In the article “Electric Scooter Business: How to Start And Gain Profits As Fast As Possible” we write about it (profitability) in more detail.
In this article, we will talk about the electric scooter franchise, which allows you to launch the e-scooter business quickly with minimal costs and mistakes. We will also analyze the electric scooter franchise cost, what does it include, and what you get for this money.
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One of the main advantages of the electric scooter franchise is the price. Let's explain everything in numbers. The cost of developing a custom e-scooter app is about $40,000 and it’s in case it will be developed by a team from Eastern Europe (Ukraine), the average rate of which is $35-40. If you choose a team from the United States or Western Europe - the cost can increase 2-3 times to $80,000-100,000. The electric scooter franchise cost consists of the first payment for setting up the application and programs and monthly subscription fees. The first payment can cost from $5000 to 7000 and this is 10-20 times less than the development of a custom e-scooter app cost. Let's consider what is included in the first payment in the electric scooter franchise cost.
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Scooter franchise cost: list of works and their cost
At the initial stage of the electric scooter business launch in terms of the franchise, we prepare a unique design for a rental e-scooters application, set up the application and CRM according to your wishes and the needs of doing business in your country (payment methods, promo codes, promotions, trips ratings, taxation). Let's look at the main works of this stage and their approximate cost.
|List of works||Work Description||Time spending, hours||Cost, $|
|Unique UI design of the e-scooter sharing app, promo-site||We prepare a unique application design according to your preferences and wishes (brand colors, logo).||40||1600|
|Setting up of the e-scooter sharing app functionality||We adjust the work of the application to the specifics of your e-bike rental business (payment methods, promo codes, promotions, rates, etc.)||20||800|
|Software configuration (CRM) for company managers||We adjust the CRM to the specifics of doing business in your area (taxes, other costs)||32||1280|
|Scooters connection to the application and CRM||We connect your scooters fleet to software to track and manage them.||24||960|
|Publishing the e-scooter sharing app on mobile platforms.||We publish the e-scooter sharing app in the Play Market, iOs Store.||16||640|
|CRM publishing for company managers||We publish the necessary software (CRM) to manage the Electric Scooter Business.||8||320|
|Testing||We test the correct operation of the software and their synchronization with the scooters fleet.||20||800|
The cost estimates of starting an e-scooter business are approximate because there are a number of factors that affect the amount of work required. Including:
- Payment methods integrated into the software
- Number of scooters and their model
- Specifics of doing business in the country (taxes, other expenses)
- Additional software functionality
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Scooter franchise cost: monthly subscription fee
The franchise owner pays a monthly subscription fee for using software for sharing electric scooters (client application and CRM for managers). The subscription fee amount depends on the number of scooters and ranges from $5 to 8 per scooter. The larger the fleet, the lower the rating per scooter is. Let's consider the examples of different companies that have different fleets of scooters to understand the monthly subscription fee better. There are examples for 30, 50, and 120 scooters.
|Scooter number||Scooter rate||Monthly subscription fee|
|30 scooters||$ 8||240|
|50 scooters||$ 6||300|
|120 scooters||$ 5||600|
From the table, we can see that the monthly subscription fee depends on the number of scooters. For example, the electric scooter business which has a fleet of 50 scooters, will cost $300 a month. So, we figured out the electric scooter franchise cost on the example of the franchise from the product IT company RexSoft. Scooter franchise cost consists of the first payment and monthly subscription fee. The first payment can cost $5000-7000, and the monthly subscription fee for an e-scooter business that has 50 scooters, will be $300 per month.
What is the electric scooter franchise cost in 2022?
E-scooter franchise cost includes 2 payments: first payment and monthly subscription fee. First payment is $5000-7000, and and monthly subscription fee is from $ 5 per scooter.
What factors influence electric scooter franchise cost?
The franchise cost is influenced by following factors: payment methods that need to be integrated into the software, number of scooters and their model, specifics of doing business in the country (taxes, other expenses), additional software functionality.
What does a customer get from the electric scooter franchise?
The client gets individual settings up of the franchise software (unique design of Scooter Sharing App, customization of software functionality, the right to use the necessary software, technical support).