Electric Car Rental App Development : to break-even the electric car rental business within 2 years
After e-scooter rental, electric car rental app is the future. Know business model, market possibilities and cost of uber for electric car rental app development.
It is a public knowledge that in the last few years, the greenhouse gas emission has reached an alarming figure and it has been causing major trouble to our earth. But the eye-opening fact is here; our most used mode of transportation, car, is leading the chart of ‘Sources of Greenhouse Gas Emissions’.
Sensing the urgency, many governments pushed carmakers to produce electric cars which is the greenest and cheapest mode of transportation we have currently available to use. But due to many obvious reasons, people didn’t adopt the electric car culture so well. So, governments figured out many other ways to educate people about the benefits of using electric cars. Okinawa’s electric car rental pilot project which was carried out between 2009 to 2011 was the part of Japan government’s first proper initiative to bring electric car rental culture on its foot.
Insight into the world’s first large scale electric car rental pilot project
- To increase awareness and facilitate the diffusion of technology, Japan’s Okinawa city launched the electric car rental pilot project between 2009 and 2011. It was the world’s first such kind of project.
- The major business challenges they found during the project were low user rate and customers’ worry about insufficient recharging infrastructure. However, by harnessing proper resources in the business operation, it may be possible to overcome these challenges.
- With the electric car rental pilot project, they wanted to improve the tourism of the island by allowing tourists to rent out the electric cars at a very affordable rental fee from the airport itself.
- Government tied up with travel agencies to include the electric car rental service into the tour packages.
- They had also built 27 fast-charging stations across Okinawa.
- They were offering electric car rental service with the fleet of Nissan Leaf which was having a range of 160 kilometers at that time.
- It took them 3 years to break even the cost of a Nissan Leaf.
- They targeted 100 rentals per car per year.
- They were charging based on the distance driven per rental.
- And they were also charging a $20 fix fee for unlimited recharging.
Uber Electric Car Rental App Scope : Leaving the past behind, let’s now talk about the current market scenario of the latest electric transportation industry .
The current electric-car rental market
Car rental service has been here for quite a long time. It works on the model of renting automobiles for short time. It generally targets tourists or those people who don’t own cars. However, this conventional car rental service has many drawbacks. But the major drawback is the higher cost as it provides cars which run on gasoline.
Thus, the trend has shifted to electric car rental. An electric car is not only an affordable option but it helps us to fight against climate change. In the last few years, many electric car rental companies have shown up. Because of these electric car rental companies and increasing public awareness, the global electric car rental market is forecasted to grow at a CAGR of 11.01% from 2017 through 2021.
In case you are wondering who is leading the market today, here is the list of top electric car rental companies.
Business Operational Areas: Major cities of UK
Fleet: Tesla Model S, Tesla Model 3, Nissan Leaf, Jaguar I-Pace, Hyundai Kona
Base price: £69/day
Company USP: Easy pick up and drop off facility with the mobile app
Business Operational Area: UK
Fleet: BMW I3, Tesla Model 3, BMW I8
Base price: Unknown
Company USP: One-way rental option and premium fleet
National Car Rental
Business Operational Area: USA
Fleet: Nissan Leaf or similar
Base price: Unknown, but seasonal
Company USP: Affordability and easy pick up and drop off facility with the mobile app
Here, if you have noticed, all electric car rental companies are doing their business with the electric car rental mobile app. Let’s find out why?
Why having an uber for electric car rental app is healthy for your business?
Developing a mobile app is considered as the basic move to increase the efficiency of your any sort of business. Talking about electric car rental business, here is how an electric car rental app lets you derive several business benefits.
Benefits of customer app
» The customer app version of the electric car rental app lets users find electric cars easily.
» Customers don’t need to wait at the pick-up station to complete the manual registration process as the app allows customers to sign up by adding necessary documents such as a driving license.
» Thanks to the IoT technology-enabled app, customers can unlock or lock the car with electric car renal app.
» Customers can pre-book the car.
» They can find the nearest charging station.
» When it comes to doing the payment, customers can pay from the app itself.
Benefits of the admin app or admin panel
» You can track each electric car so painlessly.
» You can check the remaining battery of the EVs from the battery monitoring window of the admin panel.
» You can directly talk with the customers.
» You can monitor the performance of the EVs.
» You can keep an eagle eye on successful payments and failed payments.
» Thanks to dispute management feature in the admin panel, you can solve the customers’ queries very efficiently.
» Overall, you can run your business with the minimum staff.
Profitable business model, you can follow in app-enabled electric car rental business
Electric car rental is not a well-explored business, so the scope of business model innovation is very high here. After having a long conversation with our business experts, we have listed out a few profitable ways to make more money through electric car rental business and electric car rental app.
- The first way you can make money is of course by charging users based on the usage of your electric car. For that, you can either introduce a per-day renting model or per-kilometer renting model, according to your business goals and promises.
- You can also extend this business model to the premium business model as a premium business model keeps the revenue-per-employee high. But having premium business model means premium cars and premium services which may cost you more during the initial period, but once you break-even the cost of it, you can make more profit from 1 premium class user than 10 economy class users.
- Another way you can make money is by charging them for the car recharging. Here, you can either charge them a fixed fee or include it in the car renting fee.
- To attract more users and offer a pleasant user experience, you can tie up with travel agencies, charging infrastructure providers and roadside assistance providers.
- The cost of purchasing an electric car is very high and looking at the current market need, you will require 1.5 to 2 years to break-even the fleet purchasing cost. Thus, becoming a partner with electric car manufacturers or providers can be a worthy choice.
Cost of Electric car rental app development : How much does it cost to develop an electric car rental app?
Coruscate is the top electric car rental app development company which entertains numerous amount of queries related to electric car rental app development and e-scooter app development. Our highly skilled developers and designers develop one of the most robust and feature-packed apps. We have been working closely with the startup and justifying their needs, we become business strategic partners to assist them throughout the business journey.
With our rapid app development technology, we develop electric car rental app within 45-55 business days and under $10k.
To know more about the features, discuss the business possibilities, seek help to craft the business model and to get a free app demo of the electric car rental app, please contact our app scientist and business expert by filling the following form.