Raise from a startup to brand: 5 effective steps to start the e-scooter rental startup
If you are at an early stage of entrepreneurship and planning to develop your first e-scooter app to jump into a most profitable business, you probably have many doubts related to e-scooter app development approach, budget, business permit, business model and many more. If you just nodded positively, you will be reached beyond the early stage of entrepreneurship after reading this very informative blog, written by a panel of micro-mobility experts.
In this blog, we will discuss 5 effective steps you can follow to kick off e-scooter rental startup and to be brand within a few months of business. So, without any further due, let’s proceed.
5 effective steps to start the e-scooter rental startup
Step 1: Decide the business boundary first
No, developing the e-scooter rental app is not the first step for starting the e-scooter rental business efficiently. And there are reasons behind it. If you end up developing the e-scooter app first (without deciding business boundary and without knowing the market), there are higher chances that your app is missing some exclusive features for exclusive users.
So, why deciding business boundary is the first step?
Perhaps the most important reason for deciding business boundary first is that it tells you about the users and market. And if you know users and market, you can develop the app in such a way that it satisfies the user and market needs in the best possible ways.
Also, deciding business boundary before thinking anything else is very helpful to deploy e-scooters with your company logo in some big cities in the near future. Because, as a newbie, governments of big cities never give you the permit for running an e-scooter rental business. So, here is a piece of advice. Always start with the small. You can deploy e-scooters with a mobile app in the universities of your city, in the airports, in the community halls, and in the small cities. Once you manage to run an e-scooter rental business on a small scale, you can apply for a permit to take the show on the roads of big cities. If you have experience of running an e-scooter rental business (and if you satisfy all other rules of them), governments of big cities will surely grant a permit.
Majority of e-scooter rental companies which are topping the chart have started an e-scooter rental business from universities.
Step 2: Hire e-scooter app developers
Before we move ahead, I would like to break your illusions related to ‘hire e-scooter app developers’. First, here ‘hire e-scooter app developers’ means outsourcing app development project to an e-scooter app development company and not to freelance e-scooter app developers. Second, outsourcing app development project to e-scooter app development company does not mean that you are paying them for developing the app from scratch. You can select an app development approach from more than one available choice and save a really great amount of bucks. Here is how.
As a startup, you don’t have to launch your app with all futuristics features. You can start with some basic features. It is always advisable to avoid the custom-built app development approach as it costs you very high and the time taken to develop a custom app is more than 3 months which you as a startup cannot afford. So as an alternative, always opt for either white label e-scooter app solution or e-scooter clone app. The difference between white label solution and clone app is here:
Many e-scooter app development companies own some ready-made e-scooter apps. In the case of a white label solution, they customize the features according to your needs and deliver the app with your branding. While in the case of the e-scooter app clone, they deliver the already-developed app (Which has similar features of some popular apps) without any customization.
We at Coruscate provide a white-label e-scooter solution at the price tag of $10000 or less and e-scooter clone app at the price tag of $7000 or less.
Step 3: Pay heed to hardware
Whether you believe it or not, but the governments are quoting poor quality of hardware as the prime reason for e-scooter riders’ injuries. Recently, many local authorities banned the e-scooters over the concern of people’s safety. But many of those authorities granted permits to companies which upgraded the e-scooter hardware along with software. This clearly depicts that governments are more interested in hardware quality than anything else. In case, you are planning to deploy e-scooters in a university, the authority of that particular university will also take hardware quality into account.
Additionally, a hand-picked e-scooter increases the user experience and avails you to attract more users. In a city like San Francisco and Melbourne where the hilly terrain is a challenge for e-scooters, offering e-scooters with high power helps users to ride in challenging terrain which eventually makes them feel that your e-scooters worth their dollars. If you are deploying e-scooters in universities and community halls, power will not be an issue, but the tyres will be as the floor of such kind of properties is having less friction than the asphalt roads. Meaning, you need to customize the tyres.
Also, a reliable e-scooter comes across very less number of mechanical faults and reduces the operation cost. Considering the fact that an e-scooter rental company has to spend over 50% of one e-scooter’s earning on the maintenance of it, having a reliable e-scooter which demands less maintenance is a very big deal.
4) Define a profitable business model
Governments want e-scooter rental business owners to offer very affordable e-scooter rental service to users. And business owners want to earn more with the help of a premium business model. But for the sake of earning more money, business owners cannot disobey the rules. So what is the alternative? Here it is.
A precisely crafted business model is the answer. In the e-scooter rental business, the profit is basically calculated based on the per ride, per e-scooter. And just because of this, the significance of the business model is very high in the e-scooter rental business. A properly crafted business model adds a few cents in the earning coming from one e-scooter, one ride. But if you have a fleet of 1000 e-scooters which combined complete 5000 rides daily, then even an increase of a few cents can increase the ultimate profit by hundreds of bucks.
If you follow these simple 4 steps and start an e-scooter rental business on a small scale, you will one day become eligible for the big urban city.
5) Expand the business boundary
After running the e-scooter rental business successfully in small cities, universities or community halls, it is time to achieve the ultimate goal.
The best way to get a permit in a big city is entertaining the city’s e-scooter rental pilot project. Many big cities launch pilot projects before giving a permanent place to e-scooter rental companies. If you satisfy all of their terms and prove your worthiness during the time period of the pilot project, nothing can stop you from getting the long-term business permit. However, to get a long-term permit or even the place in the pilot project, you have to satisfy the rules and regulations of local authorities. But since you have already been running a successful e-scooter rental business on a small-medium scale, you can easily assure the local authorities that you will not violate any of the rules. This is why defining the business boundary is the most fundamental step to raise from the ashes and visit the valley of flowers.
In the nutshell
To be successful ‘tomorrow’, keep an eagle eye on things you will require ‘tomorrow’ which you can collect and claim ‘today’, more easily than ‘tomorrow’.
Coruscate is the top e-scooter app development company. We accommodate not only developers and designers, but data scientists and IoT engineers too. All experts from all teams work together to develop a startup-ready e-scooter app which costs really less. We provide a robust and scalable white-label e-scooter solution, clone app and custom-built app. To know more about the features, micro-mobility regulations or seek any help for a micro-mobility startup, please feel free to contact us.