How to Start an e-Scooter Rental App Business?

“Rising oil and gas prices add to U.S economic challenges”– The New York Times

Increasing fuel prices is an important concern to be considered in the current era. Well, an alternate option can work here.

With an issue, an opportunity knocks on the door. If you can identify it, be ready to become a millionaire in the future.

Electric motor vehicles should be a major determinant and are adding a choice to fuel-based vehicle alternatives.

Now, the question arises “How to start an e-scooter rental app business?”

Here, all you need is a complete guide to initiate an e-scooter rental app business. The present blog will help you to address all your doubts, but only if you read it to the end.

Let’s begin it together.

What is an e-Scooter Rental App Business?

Before you skip to the process of starting an eScooter rental app business, let’s understand what it looks like and mean.

An electric scooter rental app business that can be called scooter sharing is one of the transportation models that is designed for people for short-term use.

Within the e-scooter ridesharing business, an app is avail to the users so that they can avail the service of transportation that does not harm the environment, is effective for short-term purposes, and is easily accessible.

Now, let’s learn about its working process in the next section.

How Does an eScooter Rental App Business Work?

After learning the concept of the e-scooter rental app business model, let’s switch to learn its complete working procedure.

Learn them whole with a stepwise guide.

Step 1: Profile and Authorization

After downloading an e-scooter sharing app, users make their profile that includes an authorization process for safety. It helps users to keep their data safe and secure with the app.

Step 2: Search for Nearby eScooter

With the help of GPS tracking, users see all the available e-Scooters within the range of their location. The app allows them to know their nearby places where they can get and start a ride with an e-scooter.

Step 3: Finding and Booking

After users go through available nearby eScooter options, they can book one for their ride. Based on the feasibility and accessibility of the eScooters, booking it is a crucial step.

Step 4: Unlock the EV

When users reach the location of the booked eScooter, the next step is to unlock it. They can unlock the eScooter through a QR scanner that quickly tracks booked QR available on eScooter.

Step 5: Start the Ride

With all the instructions to drive an e-scooter, they get to the seat and start their ride. This assists the eScooter app businesses to keep track of the riders and ensures safety.

Step 6: Lock and Pay

Now, after reaching the destination, users can pay via the inbuilt payment integration process. Later they can lock the eScooter just after they complete the payment process.

Step 7: Reviews

The App will ask to rate their ride experience from the users. This further helps the business to improve the e-scooter rental app services for their target users.

Till now, you learned about the concept of the eScooter app business along with the process of its workings. Now, it’s time to know, why should you invest in an e-scooter rental business.

Why Start a Business eScooter Rental App?

Are you eager to develop an e-scooter rental app, but still confused about why should you proceed?

Well, then it’s time to know the requirements of the eScooter app business in 2024.

• Market Demand

Increasing pollution, traffic, and rise in oil prices are certain reasons for people to switch to electric scooters. This raises the need to discover this new market segment. Learning about the current e-Scooter trends can assist you here.

In the world, the e-scooter revenue is projected to reach US $2,041 million by the year 2024 and is expected to reach a volume of US $3,046 by the year-end of 2028. These stats create an opportunity to explore the market successfully.

• Cost-Effective Business

Well, you must be wondering about what is needed to start an e-scooter business. Moreover, will it be in your budget?

A few e-scooters or a collaboration with its manufacturing units, an internet connection, an app, and software. Yes, these are the only assets required. It is a simple business that can be even started from the comfort of home. With very little investment, you can capture a huge market.

• To Meet User’s Satisfaction Score

With an innovative idea to enter the e-Scooter market, you can meet user’s expectations after starting a business.

Road traffic eats up most of the valuable time and pollution generated by vehicles causes harm to the environment. Hence, an e-scooter rental app business can assist you in serving users struggling with transportation issues.

• Low Maintenance

If you want to have a transportation business then the e-scooter rental app is the best option. Compared to other vehicles, it needs very low maintenance. How?

All you need is to connect with app maintenance service providers with effective skills and a team to take care of e-scooter maintenance. On the other hand, if you compare it with another transportation model, you will need to worry about fuel, parking, and a lot of other elements.

• Growing Environmental Awareness

People have struggled during the period of pandemic which has made them to learn the importance of health. They know the value of saving fuel and the environment together.

This has resulted in increasing sales of EVs. In 2022, EV sales have outbreak a record of 10 million sales where 14% of new cars sold were electric. Hence, it can be stated that people are inclined towards electric vehicles that can assist you in approaching this niche market easily.

• Source of Revenue

Starting an eScooter ridesharing app business can become your prime source of earning revenue. With the help of effective monetization models, you can earn a handsome amount.

You can charge the users based on their ride where the rate may fluctuate depending on the demand and time of the day. This can be one of the important sources of earning revenue from the business of eScooter rental app.

These were some of the reasons to continue with the electric scooter app business.

Now, let’s come to know the process to kick start your e-scooter app business in the next section.

The Process to Start an Electric Scooter Rental App Business

What’s the right process to start an electric scooter app business?

After learning about the concept, working process, and reasons, let’s know the in-depth process of starting an electric scooter rental app business.

Step 1: Market Research

Market research is one of the important and first options when you think about a business.

Here market research includes the study of the target audience, their niche market, and learning about the competitors in detail. E-scooter statistics can help you here to draw important insights.

Step 2: Decide the Location

E-scooter app business totally relies on location, thus, here you need to look for three important segments that comprise location, city regulations, and opportunities.

Selecting the right location and looking for areas with a high foot, public transportation or tourist attraction is one of the important elements, you can consider here.

Step 3: Make a Budget

Now, it’s time to make a budget for your e-scooter business. Here, you should create an Excel sheet for predicting all the costs and gaining insights from the existing companies with their cost structures.

Within the sheet, you should include all kinds of costs comprising hiring app developers, maintaining the EV, and concerned costs related to marketing and customer support.

Step 4: Apply for City Tenders

Depending on the size of the business and target locations, you have to take tenders from the local government. This can be one of the important yet highly competitive processes.

Now, you should consider the requirements of each tender and then can implement them, in your application. This process can assist you to get the contract successfully to have a competitive edge.

Step 5: Select the Right e-scooter and Draft a Contract

In this step, you need to select the right e-scooter for your fleet. You should compare the e-scooter of one manufacturer to that of the other to have the best option.

You can create a contract with e-scooter manufacturers with details that include information about supply and branding.

Step 6: Develop Your App

Now, it’s time to hire app developers with effective and competitive skills. You all need to discuss the business model with them and details about your dream app.

They will make out a plan to design an e-scooter rental app that can result in increasing your competitive position in the market.

Step 7: Plan e-Scooter Fleet Management

Under this step, you need to plan daily operations that might include charging and maintenance as crucial concepts. Additionally, you should plan to expand a certain amount of e-scooter spare parts.

A team to manage the fleet should be hired based on the required skills and talents. Moreover, you can hire customer executives to address any user’s queries related to the app.

These were some of the essential steps that needed to be undertaken for starting an e-Scooter app business. Now, if you’re bothered about the features to include in it, the next section will help.

Essential Features to Enhance an e-Scooter Ridesharing Business App Presence

Once you decide to design an e-scooter app, looking for the essential features that can increase its online presence in the competitive market is essential.

Here is the list of e-scooter app features that should be undertaken to start a business.

1] Signing-Up and Profile Creation

This feature will assist the users in making their profile over the app and can assist them in proceeding with it. Here all you need is to ensure authorization by securing users’ data. You can allow the users to use animation or the latest technologies for drafting their portfolio on the app

2] QR Code Scanning

Allow users to drive through assisting them with a QR code on the app, once they book their ride. It will help in security e-scooters to get stolen and assist users to lock and unlock them after as well as before the ride.

3] Push Notifications

Push notifications feature should be developed to engage the users in the long run. It can create awareness among users related to any recent updates, new features, and sale or discount parameters. This is an important feature that can keep users informed and notified resulting in user satisfaction.

4] Ride History

Users can keep track of their ride history through this feature. It is the most underrated feature, although it assists users in knowing about their previous rides, expenses made over such rides, and time or location.

5] Payment Gateway

You need to add a payment gateway integration within the e-Scooter app to allow users to pay through the app without switching to any other application. Here you should ensure a secure and safe payment option for the users to increase the overall functionality of the e-scooter app business.

6] GPS Integration

Within an e-scooter app, it is important to connect and track the location of the app’s users. Thus, it is essential to add a GPS tracking system. This process assists the users in locating the nearby e-scooters based on their preferences, battery status, and location.

7] App Compatibility

The app should be compatible with different devices irrespective of their screen size. Ensuring the app’s compatibility to achieve the target audience is important. Riders should be enable to operate the app from anywhere which should add to their seamless user experience.

These were certain features that you can consider to include in your next e-scooter app while initiating a business. Now, let’s consider the cost in the next section.

The Cost Required to Start an eScooter Rental App Business

Determining the cost to develop an e-scooter app is important.

However, identifying the exact amount is difficult to examine and it depends on multiple factors. Here is a range you can consider.

The cost to start an eScooter rental app business can vary from $25,000 to $355,000.

You should consider factors including complexity, app design, app compatibility, and tech stack and development team before you arrive at cost estimation figure.

How to Monetize the Business of an eScooter Rental App?

How do you think, the top e-Scooter apps make money?

An app that doesn’t provide enough profits to sustain the business is useless, right?

That’s why adding app monetization models to the app can provide multiple ways to make money that most e-scooter apps do. Let’s learn them all here.

► Freemium Model

Within the freemium model, you can add a free and paid app version to make money. Under this feature, you can fix some of the features for the users who are enjoying free functions and can encourage them to upgrade the app to the premium version to use other crucial features.

► Advertising Model

This is a common way to monetize your e-scooter business app where you may allow the users to place static as well as animated ads through banner, video, native, and interstitial ads. The advertising model is one of the important monetization strategies that enable users to get engaged.

► Affiliate Marketing

Affiliate marketing can be performed through the app. Here you pay a certain amount of commission on every sale made by the affiliates that have pointed out to visit your e-scooter app to book a service. Moreover, you can even promote third-party products and services over your app to earn commission.

► Data Monetization

This model of app monetization is used mainly to earn money by selling users’ data. Over e-scooter apps, you will collect a large amount of data that can be used to draft reports that can be sold to other brands in exchange for money.

► Partnership and Sponsorship Model

The partnership and sponsorship model works by a platform that utilizes different forms of promotional content that enable advertisers to connect with potential users. Here, you can use this model for making networks and assisting other brands to get the desired traffic.

Now, as you learn the amount to invest for starting an e-scooter business along with the strategies to earn money, you should learn certain important tips that can make your app stand out among competitors.

Additional Tips to Consider

Do you want to make an e-scooter app like Bird?

Then, you should avoid mistakes in developing an e-scooter app that can make your business fall apart by learning some important tips.

Here is a list of additional tips to follow.

♦ Include Customization

The use of a customer-centric model can help you here.

Include customization and prioritization within the app to make users’ journeys effortless.

♦ Analyze Competitors

Through market research, you should know the competitors who are driving out the traffic.

Know the tactics they use to attain a larger market share.

♦ Invest in User Interface

The user interface is not an element to ignore, instead, it’s a component to invest wisely.

Know the UI/UX design and select an effective interface that can grasp the user’s attention.

♦ Select App Features Wisely

If you overbuild the app with lots of features, it can fail and if you add fewer features, it may not fulfill its purpose.

Thus, deciding on the right number of features and their types is crucial.

♦ Connecting with Right App Development Company

When you start an e-scooter app business, developing an application that adds value to your business is important.

Hence, the enterprise that you select for its development is keen and crucial.

Well, selecting a company plays an important role then, why shouldn’t you select it now?

Why Switch to Nimble AppGenie to Quick Start Your eScooter App Business?

A team that knows current market trends, has experience in developing an app, and is effective in fulfilling your demands is precious, right?

Nimble AppGenie is the best e-scooter app development company that contains all the requirement elements you will ever seek.

With a panel of professional experts, we can guide you with essential features, current market status, and a lot more.

Conclusion

Initiating a business of eScooter ridesharing app can seem hard at first but once you gather the right information, it becomes a piece of cake. The e-scooter rental app business is one where users can find nearby e-scooters and can ride on them to reach their destination by paying the required amount.

You can start your e-scooter app business by conducting market research, connecting to a company, and performing marketing of service. Here, you should note to add important features for enhancing user satisfaction.

Further, the implementation of the right monetization strategies and including the right tips for starting the eScooter rental app-sharing business can help here.

FAQs

Niketan Sharma

Niketan Sharma is the CTO of Nimble AppGenie, a prominent website and mobile app development company in the USA that is delivering excellence with a commitment to boosting business growth & maximizing customer satisfaction. He is a highly motivated individual who helps SMEs and startups grow in this dynamic market with the latest technology and innovation.