Is The E-Scooter App Business Profitable?
Simple answer: Yes!
E-scooter app business is a profitable business and good for entrepreneurs looking for a low-investment, high-return model that has great potential to scale. Let’s understand the top 5 reasons for this.
The top players are well-established in the cab industry making it difficult to gain market share. It is going to be hard to penetrate the market and will produce slow returns. With e-scooter sharing apps, the market is largely untapped in India.
You can gain a first-mover advantage and scale quickly to make your business the top scooter-sharing application.
Investor’s Favorite :
Ola Electric has raised $200 million in their latest round of funding. This segment of the market is receiving huge funding by investors. The EV market is in the growth stage and raising funds will not be that hard if you have a solid business plan in hand. Investors are willing to explore the space and see potential here.
The primary investment and fixed cost in this business is the batch of e-scooters you purchase and the app you develop for it. Parking station fee is another recurring cost. The marketing cost is variable and no commission-based revenue from drivers. You keep the entire fare paid by the customer.
Also Read: E-Scooter App Development: A Complete Guide
Returns and Profits are quicker
Given the low operating cost and low CAC, returns are quicker. The e-scooter sharing app business can break-even faster than others and profits will soon come in.
Multiple revenue streams
Apart from the D2C model where customers will place on-demand orders through the app, E-scooter sharing apps business generates profits through various sources. The B2B model where you can provide services to hotels, resorts and academic institutions, creates a new revenue stream.
At Coruscate, we help your business grow and provide technological support solutions. If you are looking to build a profitable e-scooter business, book a consultation with us and develop the best app with us.