Four scenarios showing growth for the e-scooter sharing industry in the upcoming years
Electric scooter sharing may feel like a new trend in the industry and everywhere in the world with these little electric vehicles running on the roads. Each day, a new city experiences the takeover by this convenient mode of transportation. There were times when the future of e-scooter sharing companies was looking a little uncertain. But it was just a matter of time. The improvement in their business strategies and the acceptance from people all over the world have cleared the clouds of doubts and made it loud and clear that the electric scooters are here to stay.
It has been over a year after the launch of Santa-Monica based Bird electric scooter. They started the electric scooter rental craze with the cities in the US and slowly made their footprints across the globe. Though Bird seemed original at that time, others joined the industry building competition in the e-scooter sector.
With the passage of time, it has been observed that each of the scooter sharing companies has acquired a strong hold over their specific territories and are earned huge profits. But, like every other business, the electric scooter has its ups and downs too. So, what will happen to these scooters and the companies renting them out in the next few years?
Here are the possible four scenarios regarding the future of E scooter industry :
First, let’s check out a quick recap of how the e-scooter got where they are today.
The dockless e-scooters are popular transportation mode in hundreds of cities in the world. They have expanded not only in the US but in the UK, NewZealand, Australia, Nordic countries and many other parts of the world.
We can see that startups like Bird and Lime are not estimated to be worth over the US $1 billion and looking at their success, the ride-hailing giants like Uber and Lyft have also ventured in this industry. There are a few startups like VOI and TIER coming up with an idea to save their environment and make more space in countries like Sweden and Norway.
There are some companies which are acquired by the giants for making more profits. But if you take a closer look, they all charge the same: US:$1 to rent an electric scooter and $ 0.15 per minute. Though the international rates may vary.
The experts believe these companies are sure to draw in a lot of customers due to their initial promotions and affordability for their daily commute. However, in order to survive with the raised bar of consumer expectations and tough competition, they need to implement some smart strategies to make things work as expected.
Another matter of concern for the electric scooter rental companies is the scooters that they use for the rental programs are more or less the same models from the companies like Xiaomi and Ninebot. These e-scooters are disposable and cannot be used for a longer period of time as they have the lifespan of just 30-90 days before getting broken and beyond repair. The lifespan dwindles and gets much lesser due to constant commercial use. Bird and Lime came up with the idea of working on their own electric scooters but those scooters are also not very sturdy.
Despite all these issues, the survey shows that people love these tiny monsters and prefer them for daily transportation over any other mode. So, if the companies are facing issues, but the people still love electric scooters, what exactly are the possibilities for these scooter rental companies in the coming future and what is the scope for the new startups who want to venture this business?
Here we go:
Scenario 1: The e-scooter rental companies hold their own territories in different parts of the world
The electric scooter rental companies should need to co-exist together. And for that, the first thing that they need to do is hold their own territories of dominance.
For example, the Bird scooter rentals are popular in Santa Monica and the rest of the US. They have already spread there wings to become an international company. Now, it is the time to hold that status of popularity. The company needs some innovations to keep the customers loyal to their services with some advanced technology and newly introduced features.
If you are a startup looking to enter this realm, this point is for you as well. Customers do not like rotten ideas. They always wish and demand something new. You need to introduce something which the target audience never had before to attract them and keep them interested.
Scenario 2: The mergers for profits
The electric scooter rental companies can go for mergers in various parts of the world to grow together. As the companies are providing similar services, they can actually profit by earning together.
Many mergers have proven the success of e-scooters like the Jump scooter acquired by Uber, Ford took over Spin, Grin, and Yellow went for success party together.
As a startup, you can also think about getting along with an established partner for the success of your new endeavour.
Scenario 3: The giants gain profits by increasing prices
The electric scooter rental companies like Bird and Lime have now reached to the IPO status. To earn more and more profits, they can raise the cost of scooter rental with the passing days.
The cost of scooter rental, for now, is too low. Even if there is a little hike in the prices, people will not take much notice as the prices will still remain very much affordable. But that can increase the profit percentage of scooter rental companies.
If you are a startup, it is advisable to go for an in-depth market research before pricing the vehicles.
Scenario 4: The e-scooters will be considered over any other transportation to save the environment
Environment plays an important role in the life of a daily commuter. With the increasing number of cars making cities polluted and less worthy for the habitation of humans, people are looking out for various ways to save the cities and the environment.
E-scooters have provided a way and perfect transportation alternative to save the cities. So, people are taking more and more e-scooter for transportation than hiring a taxi.
Going for an e-scooter rental business can really be a profitable idea looking at various scenarios predicted for the future of e-scooters.
All you need is an amazing app with some different and extraordinary features to provide your target audience a crispy yet comfortable way of transportation. We, at Coruscate, can help you grow faster and earn more profits.
Curious? Here is an overview of the cost and hours needed for the e-scooter sharing app development:
Want to know about the basic features that you can include in the e-scooter app? Learn here.
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