How to start e-scooter business in brazil

A recently launched e-scooter app in a Brazilian city Aracaju is the green signal for other startups to build an e-scooter app in Brazil

The buzz surrounding the micro-mobility industry is overwhelming. The profitable business model of the electric scooter sharing business has gained tremendous attention of top venture capitalists. 

According to the McKinsey, stakeholders have invested more than $5.7 billion in micro-mobility startups since 2015. Thanks to the large user base, the micro-mobility market has emerged roughly two to three times faster than the car-sharing market. 

With the launch of the Bird e-scooter app in 2017, the first wave of the micro-mobility revolution hit the US market. And it later took other markets by storm. Those markets include European market, Asian market, Australian market and the latest one is the Latin American market.

So, if you are a micro-mobility startup and want to build an e-scooter app in the largest and most potential country in Latin America, Brazil, keep reading this blog. 

In this blog, we will discuss Brazilian micro-mobility ecosystem, top and recently launched e-scooter apps in Brazil, and how with just $500, you can own a feature-packed e-scooter app to start the e-scooter sharing business in Brazil. 

Brazil Micro-Mobility Ecosystem 

Many of the Brazilian cities including its largest city São Paulo witness the worst traffic congestion during peak hours, every day. On top of this, their public transportation system also struggles to support their increasing populations. These problems have led governments, citizens and entrepreneurs look for alternatives to the traditional public transportation system. And unsurprisingly, there is nothing better than e-scooters when it comes to affordable and easy way to travel within a city. 

According to Reuters, Brazil is already on the radar of the top US-based e-scooter startups. And with that, it is expected that the Brazilian micro-mobility market is going to heat up in the year 2020. Following are the top news of the Brazilian micro-mobility industry which you have to read if you are planning to build the e-scooter app in Brazil. 

  • Grin, a Mexico-based micro-mobility startup has raised US$45 million in one of the Latin America’s largest Series A rounds, merged with São Paulo-based e-scooter rental startup named Ride.
  • In October 2018, Bird which is valued over $2 Billion announced that it will soon start offering its service in São Paulo, Brazil. 
  • A Brazilian entrepreneur named Marcelo Duarte founded electric scooter sharing company Scoo in 2018. From August to October 2018 which was the trial period of Scoo, this Brazilian micro-mobility startup recorded 15,000 trips. And according to the local news agency, Scoo has deployed at least 1000 e-scooters on the streets of São Paulo. By securing more than $1 million in a funding round, Scoo is planning to run tests in Rio De Janeiro and other major cities of Brazil. 
  • Yellow which is another Brazil-based bike and the scooter-sharing startup has raised a $12.3 million in the seed round and a whopping $63 million in its Series A funding round. Brazilian entrepreneur Eduardo Musa has launched Yellow in July 2017 with an ambition to solve mobility issues of the large urban centres in Brazil. Team of Yellow started operation with just 500 micro-mobility vehicles, but they were planning to expand it to 100,000 by 2019. 
  • The latest e-scooter startup in Brazil is the Freend. Compared to other Brazilian micro-mobility startups, the operation area and popularity of Freend are very limited. But their app equipped with groundbreaking e-scooter app features will surely help Freend to scale up. As of now, Freend e-scooter app is available in a Brazilian city named Aracaju. Coruscate is the proud technology partner of the Freend.  

 

After discussing the ecosystem of the Brazilian micro-mobility market, it is worth mentioning the factors that fuel the Brazilian micro-mobility ecosystem. 

Why it is a safe bet to build an e-scooter app in Brazil? 

We accommodate 20+ well-schooled business experts who have carried out the study and declared the Brazilian market an e-scooter startup-friendly market. To keep the study realistic and effective, they set the evaluation criteria and evaluated the market based on those criteria which include:

  • Infrastructure 

Compared to the car and other modes of transportation, the e-scooter is tiny and it has its own challenges. A city which is having wide sidewalks and dedicated bicycle lanes where an e-scooter rider can easily ride the e-scooter while respecting the pedestrians and other vehicles, can only host the fleet of e-scooters. 

When it comes to top Brazilian cities such as Rio De Janeiro and São Paulo, the sidewalks are wide and all major streets of the cities have dedicated bicycle lanes. Following the image of the Rio De Janeiro clearly depicts how easily an e-scooter rider can navigate through such kind of wide sidewalks. 

Source: Culture Trips

  • Public awareness 
  • E scooter is fairly a new mode of transportation for most people. A rider who doesn’t know anything about the e-scooter, working of it and safety measures can end up hurting himself and other innocent people. Thus, almost all governments across the globe put more emphasis on public awareness while allowing operators to start e-scooter sharing business or even while refusing them. For instance, the New York city authority has recently banned the e-scooters because of the lack of awareness about e-scooter among the New Yorkers including 3.1 million immigrants who have never used such kind of mode of transportation in their native country.

    Whereas in Brazil, the number of immigrants is very less and almost all major cities of Brazil have been flooding with the e-scooters and other micro-mobility vehicles for more than 2 years. In those 2 years, the Brazilians have grown accustomed to the e-scooter culture. And in tier-2 and tier-3 cities where the public awareness about e-scooter is very low, an e-scooter sharing company can easily run the awareness campaign and spread the knowledge as the targeted audience in such cities is very low. 

  • Number of tourists 
  • ‘Tourists’ is the major user group of the e-scooter. A micro-mobility startup can painlessly be profitable if the city where it is operating attracts many tourists.

    Since an e-scooter is very affordable and fun to ride, it meets all requirements of the tourists in the best possible way. Every year, Brazil welcomes more than 6.6 million tourists who all are the potential users of the e-scooter app.

    Read our dedicated blog to know top user groups of the e-scooter app and specific e-scooter app features for all of them. 

  • Government policy 
  • Government policy regarding the e-scooter is the major barrier for micro-mobility startups. It prevents them from launching their services in the most profitable markets.

    But in almost all cities of Brazil, the government is encouraging the e-scooter rental companies to deploy their e-scooters by lowering the bar. However, an e-scooter rental company is still needed to obey the government’s rules and regulations to ensure the safety of riders and pedestrians. 

Following are the rules imposed by the São Paulo city authority. The almost same rules have also been imposed by other city authorities for other Brazilian cities. 

  • An e-scooter rental company has to provide safety equipment to riders. 
  • The e-scooter should be equipped with speed indicator, bell and night signalling. 
  • The e-scooter should not be used to drive passengers, animals and cargo. 
  • The maximum speed of the e-scooter should not exceed 40 Km/h. 
  • The e-scooter rental company should collect the e-scooter if it is irregularly parked. 

You can read more micro-mobility rules imposed by the São Paulo city authority here

Looking for a technology partner to build an e-scooter app in Brazil? Derive hundreds of benefits from our expertise. 

 
Coruscate is the top e scooter app development company which has developed the e-scooter apps for 10 micro-mobility startups based in South Korea, Qatar, Malaysia, Australia, Brazil, Turkey, France, Belgium, USA and Saudi Arabia. 

We accommodate 100+ IoT engineers, app developers, app designers, research fellows, business experts and legal experts who all work together to make your business journey as easy as pie. 

Considering the different needs of the different micro-mobility startups, we offer three ways to own the e-scooter app. 

We can develop a custom e-scooter app with all custom features which generally costs between $15K to $25K. 

A clone of the top e-scooter app with all common and latest features starts from $10K. 

And a subscription plan for white label solution of e-scooter app and admin panel starts from just $500. 

To know more about our services and get a personalized quotation along with free e-scooter app demo and free consultation, please feel free to contact us.

escooter--app-demo.

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