Bird unveils electric moped to outdistance competitors: know how to start an e-scooter rental business like Bird to be more profitable
One of the top e-scooter rental companies, Bird has recently unveiled the new e-scooter which is the electric moped and it can seat up to two people. With this highly anticipated step of Bird, it becomes clear that additional micro-mobility alternatives accelerate the business reach of e-scooter rental companies and avail them to generate more revenue.
In this blog, you will get to know,
- E-scooter rental market
- Which are the deep-rooted problems an e-scooter can solve?
- Business models of the e-scooter rental business
- How much you can earn with the e-scooter rental app?
- Leading players in the e-scooter rental market.
- How an e-scooter app which has been developed by Coruscate Works?
- Top features you must have to ask e-scooter app development company to integrate into your e-scooter app.
- How much does it cost to develop the future-ready e-scooter app?
E-scooter rental market
In recent years, user-friendly business infrastructure and favourable regulatory environment have fueled the e-scooter rental market. Any new e-scooter rental company which launches an e-scooter app with the fleet of e-scooters becomes successful in no time. Following is the graph from the SensorTower which clearly depicts how quickly people have adopted two top e-scooter rental companies of the USA and their services.
Considering the fact that all streets of major urban cities have turned into the ‘heavy traffic zone’ because of urbanization and a disordered way of transportation, an e-scooter can be the best alternative for short distance travel in the congested cities. According to a survey which was conducted in May-July 2018, public perception of e-scooters in major U.S cities is very impressive.
Talking about the market size of the e-scooter rental business, in 2017, the market size of the e-scooter rental business in the USA was valued at $11.8 billion and it is estimated to reach $25.9 billion by the end of 2021.
Which are the deep-rooted problems an e-scooter can solve?
Riding an e-scooter is undoubtedly a fun activity. But at the same time, it is also helping humans to get rid of three very annoying and prolonged problems.
It is known to everyone that cars cause the highest amount of air-pollution by emitting very unhealthy exhaust gases. On the other hand, the e-scooters which run on a rechargeable battery are the environment-friendly alternative of cars for short rides.
The biggest nightmare of any commuter is to get stuck in traffic. According to data, congestion costs Europe 1% of its GDP every year. However, an e-scooter is capable to make the cities traffic free. Since it is lightweight and scalable, it can move you faster than a car in peak hours.
» Costly mode of other transportation
In an urban city, the average fare of the cab per kilometer is around $5. But to unlock and ride the e-scooter for the same kilometer can cost you under 2$.
Profitable business models of an e-scooter rental business
A team of Coruscate Solutions has crafted three very profitable business models for your e-scooter rental business. Among these three business models, you can either opt for any one business model or all three business models, according to your requirements.
» Rental app model
It is the most basic, yet very popular business model. Almost all top e-scooter rental companies are operating their business based on this business model. The strategy of this business model is to provide the accessibility to lock or unlock the e-scooter with an e-scooter mobile app. The cost of unlocking the e-scooter is $1 and per minute riding cost is around $15 to $25 cents.
» Subscription Model
Following the subscription model means you allow anyone to be a subscriber of your e-scooter rental service by paying a monthly or weekly fee. So, now any users who are subscribers can ride the e-scooters without paying every time they lock or unlock the e-scooters. A few e-scooter rental service provider companies offer users to be a subscriber and ride an e-scooter for unlimited miles and for unlimited time in a day.
» On-demand app model
Like all other on-demand apps, the e-scooter on-demand app allows users to ask for an e-scooter to be delivered at their door-step. This can be a very useful business model if you don’t want your users to roam around the city to find an e-scooter.
How much you can earn with an e-scooter?
In the e-scooter rental business, the profit you earn is calculated based on per e-scooter. So, if an e-scooter helps you to make $3 of revenue per ride, after eliminating per ride operational cost which is around $2.5, you can make $0.5 of profit per ride, per e-scooter. That means, if an e-scooter is optimized for 5 to 6 times in a day, you can make a profit between $3 to $4 per e-scooter, in a single day.
Top e-scooter rental service provider companies
Bird, Lime, and Spin are the leading e-scooter rental service provider companies. In fact, Bird and Lime are those kinds of companies which hit the $1 billion valuations within just 1 year of the initial launch.
Bird completed 10 million rides in just a year. It is successfully generating $3.65 per ride. In 2018, it was named Time Magazine’s 50 Genius Companies.
Lime is the another unicorn which has completed 11.5 million rides by 2018. Lime charges $1 for every 30 minutes of use. Lime is also a manufacturer of the e-scooters and assembles their own e-scooters which are more secure and reliable.
Spin is the e-scooter rental and sharing company which is owned by Ford Motor Company. It was founded in 2016 and raised $8 million in its series A funding round. It charges $1 to unlock, plus 15 cents for one riding minute.
How an e-scooter app which has been developed by Coruscate works?
Recently, we, at Coruscate, have developed a future-ready e-scooter app which is feature-packed and scalable. Our developed e-scooter app and admin panel contains the following features:
- As soon as the user opens the app, he can see the all available e-scooters nearby.
- With just a single click, he can pre-book the e-scooter or unlock it to ride straightway.
- Once he arrives at the destination, he can lock the e-scooter from the mobile app.
- Based on the time he rides the e-scooter, the app shows him the fare.
- He can pay directly from the app itself. He can even save the card details for quick checkout in the future.
- He can view the riding history and comprehensive details of his all rides.
- The app notifies him to slow down if he is speeding. App also notifies to wear the helmet and riding west once he unlocks the e-scooter.
- Admin has access to the heat map which presents the locations where the demand is high, medium and low.
- Admin can monitor the battery level and damage level of each e-scooter remotely.
- Historical data and real-time data avail admin to take strategic business decisions.
Which are the top features you should ask e-scooter app development company to accommodate in the e-scooter app?
How much does it cost to develop the e-scooter app?
Developing an e-scooter app is a tedious task as an e-scooter app development company has to establish a connection between a mobile app and a fleet of e-scooters by using IoT technologies and MQTT protocol.
Here it is worth to mention that pricing of the e-scooter app development is calculated based on the number of hours a developer put in to develop the e-scooter app and the per hour cost of a developer is $20.
Refer the following table to know the estimated cost of e-scooter app development.
Coruscate Solutions is the top e-scooter app development company in the USA and Europe. We have entertained 200+ queries related to e-scooter app development. We not only develop a robust mobile app, but we also help you to choose the fleet of e-scooters and allow you to host IT infrastructure of your e-scooter rental business on our servers. As if this is not enough, we have dedicated teams of IoT engineers who know the ways to establish a connection between e-scooters and mobile app to offer the seamless user experience. So, feel free to ask for a free demo or free consultation.