Its progress is owed to its specific qualities and offerings it provides to its users and environment alike. The tremendous growth E-scooter rental and sharing industry has seen in the few years of its emergence is definitely commendable. 

The global electric scooter sharing market size was evaluated at USD 18.6 billion in 2019 and is expected to become USD 28.56 billion by the year 2025 at a 7.3% CAGR. Now, this is something that is evidence enough of its prosperity.

Not to overstate but, according to Business Wire reports, the global market of E-scooter sharing is poised to grow by 2138.50 thousand units during the 2020-2024 forecast period, with showing a CAGR of 6%.

As of March 2020, E-scooter sharing services are collectively available in 177 US and European cities – something that shows that this industry has still not lost all of its winning cards.

Of course, every coin has two sides and this industry is not far from this saying. 

The E-scooter-sharing industry unabashedly possesses the positives and negatives―the promises and the pitfalls―and keeps on improvising using technologies such as IoT, Machine Learning, etc. 

For someone who is about to explore this realm and want to start a business, it is imperative to know the E-scooter start-up problems and opportunities in business they will be dealing with in the primitive stages and benefit from. 

This is exactly what we will be going through in this article.

Electric scooter business challenges and opportunities

E-Scooter sharing market is promising but also uncertain

From the E-scooter statistics discussed above, it is pretty clear that the concept of shared-mobility is readily adopted by the public. For instance, only 15% of adults in the US ever used Uber in 2015 but the numbers rose by 2018 to 36%.

Moreover, BCG estimates that the global E-scooter rides shared market (amounting to $40 to $50 billion by 2025) will be equal to approx 15% of the overall size of the automotive-based on-demand mobility market of that year. Something which is a clear answer to many startup questions like “are electric scooters profitable?” or “are electric scooters the future?”.

There is still a high possibility of growth of the said market due to many factors. One of the best market opportunities for such short-range transportation systems is that E-scooters are still seen as a private mode of transportation and considered ideal for last-mile rides due to lesser costs than other on-demand mobility. 

However ― Irrespective of such remarkable achievements and characteristics, the chances of mass adoption of E-scooters as one of the primary modes for on-demand mobility are still slim as a stick. 

There are certain reasons for this too. For starters, there might not be adequate demand for this service, especially in sparsely populated cities, like with populations of less than 100,000. This can deeply affect any E-scooter startup business.

Another instance is where users might want to buy the E-scooter once and for all since they are not that heavy on the pocket. 

Moreover, the sudden availability of E-scooters is known to procure mixed reactions from the users wrapped with a few concerns related to public safety, rules, parking, etc. These are some of the reasons why many cities are still skeptical about E-scooter sharing.

Higher profits are still a ‘to-be feat’ 

Besides the overall potential of profitability of this market, the unit economics is still something that makes electric scooter startup cry. It all ripples down to the quality and capability of the first generation of vehicles. 

The average lifespan calculated for an E-scooter is only 3 months. These vehicles, as witnessed in many cities, become subject to vandalism, poor handling, and over-usage (since these were primarily made for private use and not as rentals) which consequently significantly diminishes their durability.

Still, besides the cost of an E-scooter itself, a company may take nearly four months at least to break even with the investment. This is when we put aside the marketing and other expenses.

The graph above is a breakdown of the unit economics of Bird E-scooter company. 

Here is the evaluation-

Average per day revenue – $0.65 (per ride) x 5 rides (per day) =  $3.25 

Break-even time – $375 (average vehicle cost) ÷ $3.25 (per day contribution) = 115 days

Besides these expenses, there are other costs that need to be addressed such as transportation of E-scooters from the central facility for battery charging, maintenance, and repairs, followed by the redistribution the next day.

Nevertheless, improvements that are being implemented are going to significantly reduce these costs for good. For example, replaceable/swappable batteries will obviously eliminate this extra trip. Plus, there are many scooter manufacturers delivering robust E-scooters. In fact, some providers are already developing their own hardware to boost product durability.

Being a major contributor to the market share can be challenging

Given the popularity of this industry, there are several major players already dominating the market. Electric scooter-sharing companies like Lime, Bird (the pioneer of E-scooter sharing), JUMP (by user) are just a few names off the top. These also come under the category of top E-scooter apps which is a cherry on the top.

In fact, a dozen e scooter startups had already attracted fundings in the billions. Some of the recent funding bagged by the companies include Bolt with $30 million in series A, Voi with $85 million, and Tier with $40 million in series B round.

With so much competition already in the market, it is quite overwhelming for new businesses to acquire the user base and hence poses an Electric scooter-rental startup problem. Ipso facto, many E-scooter service providers and investors willingly sacrifice their early profitability in order to put a firm foot in the market.

One of the biggest obstacles here is that the offerings of these companies do not have much scope of differentiation. Regardless of the quality, users are likely to opt for the product easily or firstly available in their neighborhood. 

Therefore, putting a reliable product on virtually every corner is all the marketing that companies need. However, over time, providers competing with others in the same location will need to set brand loyalty. This can only be done by focusing more on marketing and following practices such as promotional discounts to benefit customer acquisition costs while keeping the targeted electric scooter demographics in perspective.  

Additionally, brainstorming to identify the niches in this industry and then coming up with innovative features in your e-scooter mobile app can create a huge positive impact on your business.

More so, the competitive spirit will not be restricted to the costs but will extend to acquiring more turf, i.e., capturing a wider radius of areas with E-scooter availability. However, this can very easily translate into losses due to poor asset utilization. Which in turn, along with other expenses like marketing, can create ghastly situations for a business in terms of increased costs.

Another of the probable challenges while starting an e scooter business is the monster of consolidation, i.e., acquisition. From the investors’ point of view, they might get a little skeptical as to whether the startup they are investing in will be able to stand in front of established competitors or not.

Steps not to be missed

There are certain maneuvers for E-scooter startups/providers to follow to become a leading figure in the market. Firstly, the daily operations of the electric scooter rental business have to be maintained and optimized. For example, maintaining, charging, and relocating processes for these assets is a major operational challenge, for which reducing costs to approx 50% of revenue will be required for profits to kick in.

Secondly, as we have also talked above, the durability of E-scooters along with improved battery life is a crucial aspect to consider.

Thirdly, startups need to strategize well for scalability and growth of the business. For this, they can establish partnerships with complementary service providers such as mobility sharing and ride-hailing companies. In fact, joining hands with public-transit firms at local and regional levels will also help boost e-scooter rental business’ growth.

Devising/adhering to regulation policies  

E-scooter regulations will pertain to all the levels (local, state, and federal) regarding concerns such as road-side/footpath congestion. 

Companies are also required to follow certain parameters set by the state such as the number of vehicles each company could deploy and provide data to the state to monitor, analyze, and eventually better plan for these services accordingly. Something that poses something that poses regulatory challenges for these electric scooter rental companies.

This sharing of data is crucial because the negligence towards the coordination between public transportation services, private mobility services, and use of public space (roads, sidewalks, curbs) can ripple down to lower efficiency and lesser safe roads since cities will fail to design these kinds of transportation-friendly streets. 

On the customers’ part, the rider liability policies should be very detailed and marketed well to spread as much word as possible.

Finding the right partner – a reliable development company

While entering the on-demand E-scooter domain, choosing the right e scooter app development agency to develop an e-scooter app is something of a prominence. This is because the technology partner you choose today will shape the future of your E-scooter app. Moreover, your choice will affect the overall cost of E-scooter app development, depending on the location and the team size of that company. 

Plus, the quality of your on-demand e-scooter app will also be at the mercy of the company you decide to make your technology partner. So, it should be a company that is trusted and reliable. However, the challenge is how to find such a company – something that we have covered in detail in our how-to guide for the E-scooter app business.

Not to be forward but Appinventiv is a well-known digital and mobility service provider company with expertise in offering services for various domains. Being a leading e scooter app development company globally, it is a reliable organization trusted by brands like Dominos.

Once you are through with these problems in business, your startup will definitely pick up speed to becoming a profitable and successful deal.

The post Challenges to Know Before Starting E-scooter Rental Business appeared first on Appinventiv.

Well, you certainly can now. 

eScooters have presented themselves as a lost gem we totally forgot about. Of course, there were some improvisations made to the original model to facilitate transportation along with user experience.

E-Scooters certainly owe their popularity to the incessantly growing on-demand commutation market.

eScooters are an overhauled version of old-school scooters turned into electric vehicles developed by modern-day eScooter  manufacturers. These are a much better option as they work on electricity and can go miles without harming the environment. 

They are a mixture of the best elements of traveling by car, bike, and foot. They work on engines, like cars, enabling short travelling distances without hassle. 

It was almost immediately after the advent that end-users realized eScooters as one of the most cost-effective go-to travel options for short distances. Users who are always on the lookout for cheaper travel options really appreciated the initiative, for no one really likes to pay hefty amounts for miniscule rides. Moreover, from a business front, eScooters are low maintenance, making them a perfect investment unlike cars and bikes.

Now, enough with the blabbering―let’s get down to some E-Scooter Industry trends and stats advocating the exponential growth and popularity of this industry.

Electric Scooter Market Trends and Statistics

1. Electric Scooter market is expected to reach $41.98 billion USD by 2030

The eScooter market will worth nearly $41.98 billion by 2030, as per the study by Grand View Research Inc. Due to this rise, the market will face a boom in CAGR by 8.5%.

2. During the 2030 forecast period, Asia Pacific expected to lead the market

In the same report by Grand View Research, Asia Pacific is anticipated to lead the electric scooter market around the globe by 2030. Factors backing this prediction include collaboration of charging equipment manufacturers with researchers and automakers.

3. Asia Pacific eScooter Market will reach USD 26.25 billion

By the end of 2029, the Asia Pacific is going to be the largest market worth USD 26.25 billion by 2030, due to the heavy investments made in the Vehicle charging infrastructure. 

4. E-Scooter Investors

5. 5 million units of electric scooters were sold in 2018

The overall digits for eScooter units sold in the year 2018 was estimated to be 5 million. It is because many countries are enthusiastically picking up on the E-scooter trend, for it is an unparalleled substitute for natural-resources-based vehicles.

6. Electric Scooters and Bicycles sales will reach 

As per a report, the global sales of electric scooters and bicycles are expected to reach 129 million units by 2028. In 2019, the electric scooters sales was near 46.89 44.39, which grew to 50 in 2020. This gradual growth tells us the incessantly growing demand for the eScooter services.

7. By 2025, eScooter and motorcycle market will worth $13, 864.0 million

Because of the ease of transport of eScooters, they are highly appreciated by the end-users triggering the electric scooter and motorcycle market to reach $13,864.0 million by the year 2025.

8. eScooter Market will grow at a CAGR of 7.3%

With the increase in e scooter units sold and new entries of top e-scooter startup companies like Bird, Lime, JUMP, etc. and established businesses like Uber into the field, the market is bound to show incredible growth, precisely by a CAGR of 7.3%.

9. 129 million units of eScooters and motorcycles will run on the roads by 2028

E-Scooter statistics state that by the year 2028, there will be approximately 129 million eScooter and motorcycle units running on the roads globally. We can conjecture at least one thing from this statistic that the transportation domain is following the path of environment-friendly services.

10. E-Scooter market will account for 8% of overall two-vehicles on the road

The E-Scooters and motorcycles market is currently calculated to account for 2.5% of total two wheelers on the road. By the year 2023, this percentage will touch the milestone of 8%.

11. Weekly installs of Bird and Lime apps

Electric scooter app development companies are coming forth after witnessing the magnitude of response by end-users. Look at the statistics displaying the increasing love of people for on demand escooter apps.

12. Monthly installs of Bird and Lime e-scooter sharing apps

The monthly downloads count of the Bird and Lime apps increased by 580% between the months of January and July 2018, highlighting the benefits of on demand escooter apps that users enjoy. The downloads reached more than 880,000 in the United States —seven times higher than the first 31 days of 2018, as per the reports by Sensor tower.

13. E-Scooters earn over $3.65 per ride

Electric Scooters statistics state that eScooter companies like Bird, Lime, JUMP, and more charge an average of $3.65 per ride. By segregating the amount we get― $2.65 for an 18 mins ride which is a standard price as the charge is $0.15 per minute, including $1 as fixed fee.

14. 84 million trips were made on shared Mobile Mobility

In a 2019 report, the number of rides taken by Americans via dockless scooters, bikes, and traditional bikeshare systems were 136 million. In 2018, the number of rides stood at 84 million. 

15. China has spent 2.4 billion in Charging facility infrastructure

In 2020, China spent a hefty amount of 2.4 billion in the charging facility infrastructure in the country, distributing hopes of immense growth for E-Scooter companies. This E-scooter industry trend can be seen as an invitation to micro-mobility companies to expand their services to China. 

16. E-Scooter revenue expected to grow 21% by 2023

According to research on the e-Scooter revenue model by Morningstar, the overall revenue for the E-Scooter rental industry is going to rise by 21% amounting to nearly $5 billion, including countries like the U.S., Canada, Latin America, and Europe.

17. Worth of E-Scooter Market in different countries is on a rise

A report by McKinsey & company revealed that in 2030, the E-Scooter industry will be worth― $200 billion to $300 billion in the United States, $100 billion to $150 billion in Europe, and $30 billion to $50 billion in China. 

Statistics on E-Scooter Consumer Demographic

In a survey held by Populus, it was revealed that 70% of the respondents on average hold a positive view of E-Scooters. By dissecting consumer perception by Cities, Genders, Income and Age, we will gain a clearer perspective of where the demographics of E-Scooter exist.

18. Response of users on E-Scooter by Cities

19. Reception of E-Scooter by Users’ Income

20. Electric Scooter trips by Men and Women

The analysis of E-Scooter and dockless bikes share data in the U.S. depicts that 75% of trips on micro-mobility are made by men, and the rest 25% are by women. Moreover, the perception of the public on eScooter by Gender is mentioned below, showing how much they like and appreciate it.

Players of Escooter Industry Trends

Bird

The pioneer of electric scooter market trends, Bird was valued at $2 billion in its initial four months. As of October 2018, the estimated revenue earned by Bird company was approximately $250 million. The run rate of revenue growth of Bird was at $65 million as of May 2018. Bird has raised $415 million in funding so far. Moreover, the company has become the first electric scooter-sharing unicorn. As per latest news, Bird is planning to open up its biggest European office in Paris and wants to hire 1000 people by mid-2021.

Lime

E-scooter industry trend-setter, Lime was the first to walk on the footprints of Bird and crossed the valuation mark of $1.1 billion in only 18 months of its initial launch. This fact clearly shows the immediate adoption of this model by the end-users. By the end of 2018, Lime managed to accumulate $500 million as revenue, according to Axios. Since it debuted e-Scooters, Lime has managed to raise 86% of its capital through electric scooters sales.

Skip

Skip, one of the avid followers of E-scooter industry trend was valued at approximately $1 million. It is reported that Skip generates $125k as revenue per employee.

JUMP

Jump, which is a baby brand of Uber, was acquired for $200 million for strengthening the micro-mobility marke and is said to have raised total funding of $11.6 million. Its estimated annual revenue is amounted to $5 million, which is anticipated to grow with the expanding electric scooter industry.

What is The Future of Electric Scooters? 

Looking at the E-Scooter statistics, we can conjecture that this on-demand eScooter model is nowhere near done and the future of Electric Scooters is bright as the sun. We can certainly expect some improvisations made in these scooters due to their unprecedented demand across the globe. Here is what we can expect to be added to the eScooters to make them more functional, safe, and utilitarian.

• Customers with high purchasing power often look for more stylish and functional products. To cope up with this expectation, companies introduce advanced eScooters with elegant design and cool features like removable battery.
• Electric scooters’ future definitely promotes the upgrades in the hardware of the scooters will also be taken into consideration to tackle existing problems, being an impediment to absolute adaption. The improvements may account to an improved range in terms of bigger battery, dedicated micro-controllers, robust engine, addition of indicator lights, adjustable height, etc. The foldable design no longer seems welcomed by the companies so it may be discarded in the future.
• Developing an app for e scooter showing the amount of emissions saved per ride. Electric scooter app development companies can become really creative when it comes to delivering an innovative apps for e scooter with features that are remarkable and highly functional.
• Prevailing problems with chargers will be fixed, probably by the introduction of swappable batteries. These improved batteries will render a high speed charger at lower costs.
• Although, what was expected by the users is not likely to happen―addition of solar panels to eScooters, we are certainly looking forward to the integration of AI into the model. AI-powered scooters will have a partial control feature, which will help align the eScooters on road and avert the chances of clashes between riders. This will ensure the safety of the riders, giving yet another push upwards to E-Scooter industry.

Why Should Entrepreneurs Choose E-Scooter App Development?

Immediate Demand

Unlike other markets, the eScooter market comes loaded with demand. Once you launch your app on the platform and into the world, you will be amazed to see how fast its reception can be since, the transportation is a basic need. A huge number of users use ride-sharing and ride-hailing services, so your app will be an ideal choice for them to have to travel short-distances. Have a look at the app stats for Bird and Lime to convince yourself of the benefits of E-Scooter App Development.

Low Competition

Though the E-Scooter market has seen an unprecedented rise in its demand and growth, there are still limited players on the playing field, making it an absolute steal of an opportunity for entrepreneurs wanting to scoop all that this emerging and continuously growing industry has to offer.

Sea of Investors at the doorstep

The investors are eagerly waiting for a chance to grab the opportunity by its fetlock for investing in the emerging E-Scooter market. So, it is easy for you as an entrepreneur to acquire capital for your innovative business model and app.

Opportunities in Business Models

With only a small fraction of competitors in existence, it is facile for entrepreneurs to invent, experiment, and innovate with your app idea by instilling out-of-the-box features into your app. For example, instead of merely providing pick and drop facility of eScooter via your app, Beacons can be integrated to let users know of discounts in specific areas.

Instant Return on Investment

As opposed to product-based business, E-Scooter Market is a steal deal for the returns on the investments are instantaneous. There is no waiting around for your electric scooters sales, as transportation services are always on demand on a daily basis; meaning entrepreneurs can make profits and cover their investment costs with rides in just a few months. This way, the cost of eScooter app development turns out to be much lower than the returns they are able to get. 

Final Note

Surmising that the E-Scooter Industry is on an unprecedented rise globally will not be a false statement, lest it would have failed already two years back. This industry is certainly taking E-Scooter app development on the height of success along with it. If you wish to hop in this hot-market, then refer to this  E-Scooter app business in-depth guide. 

Seeing the expanded reach of this on-demand transportation domain to other countries, we can definitely expect amazingness and new mind-blowing escooter market trends emerging in the future. In case you are looking for developing electric scooter application, contact a reputed electric scooter app development company and hire escooter app developers. A E-Scooter Mobile App Development Company can offer you top-notch escooter app development services and guide you through the entire process.

The post E-Scooter Trends and Statistics Displaying a Prosperous Future appeared first on Appinventiv.

This guaranteed high-growth electric scooter app market size has come on the radar of a number of entrepreneurs who are now becoming the victims of FOMO.

The number you will no longer be a part of after 11 minutes. 

Let’s walk you through the flourishing on-demand electronic commutation market touching bases like how the micro mobility vehicles were the missing piece of the profit puzzle, what entrepreneurs need to know to earn a place in the domain, why investors are a little too inclined towards the sector, amongst other things. 

Table Of Content:

1. On-demand Commutation Market
2. The Induction and Growth of On-demand Electric Scooter App Market Size
3. Why is the eScooter Domain An Instant Hit Among Entrepreneurs?
4. Why Do Investors Love eScooters?
5. Top Players in the eScooter Sector
6. eScooter App Features
7. eScooter App Tech Stack
8. Electric Scooter App Development Cost 
9. Unit Economics of an eScooter app business like Bird
10. The Choice of eScooter Manufacturers
11. How to Find an eScooter App Development Company

But first, here is a quick glance at the on-demand commutation market. The one that would give a base to our eScooter app development guide. 

On-demand Commutation Market

On-demand technology has positioned itself as the Midas touch of the travel and commutation market. What started as the simple idea of enabling users to gain instant access to a mode of transport, has today become an industry that every entrepreneur wants to explore.

The simplicity of requesting a ride through a smartphone, sharing a ride with a fellow traveler who is going in your direction, and the ease of booking a bike when you wish to avoid heavy traffic are just some of the conveniences that have placed on-demand at the center of the commutation market. 

Now when we talk about the scope of on-demand economy on the commutation front you will find four sub-business models operating under one sector – all getting their fair share of growth and demand in the market. 

1. On-Demand Ride Services

On-demand ride services are the primal and most common types of the four sub-models of the on-demand commutation market. Started by flagships like Lyft, Uber, and Didi Chuxing, the model operates in a way where individuals who have a car enroll as a driver and then work in partnership with the parent company, in return of a percent of the money being earned on every ride.

2. Ride-Sharing

The next popular mode of commutation that millennial group of riders generally follow is the ride-sharing applications. This on-demand model targets one of the most less attended parts of the industry – the vacant car seats. 

In this case, when the users book a cab they are matched with other people going in the same direction and then they all take the ride together in one cab. 

The benefits that the transport industry achieves at the back of this model are three-fold – A. The commutation cost per person is lowered B. Gas emissions are lowered C. Traffic congestions reduces

3. Vehicle-Sharing

The third model present in the on-demand commutation sector is where people book a car or a bike, minus the driver. 

While not as common as the above-mentioned models, these also hold a good percent of interest coming in from the riders and even brands like Volkswagen. 

There are a wide number of people who partner with an aggregator business that connects them with end-users who book the vehicle to then self-drive on a kilometer or hourly basis. 

4. eScooter-Sharing

This on-demand commutation model is one which does not deal with cars and motorbikes, but eScooters. Under this model, people book eScooters using applications and use them as a last-mile option. 

Out of these four, eScooters are the most recent addition. And also the center of our article. Let us deep delve into the medium and see what the electric scooter market trends hold along with things and challenges that an entrepreneur looking to enter the domain needs to know that an entrepreneur who is looking to enter the domain needs to know.  

The Induction and Growth of On-demand Electric Scooter App Market Size

What was started by Bird in January 2017 have today become a major revolution. 

Ever since its first appearance, the idea of using eScooters to move from point A to point B, (  when the points are very close by) has been received with a very high level of interest and enthusiasm coming in from the end-users who are always on a lookout for cost-effective travel options. 

It took very little time for the news of eScooters entry in the on-demand commutation model to spread like wildfire. And a number of users jumped at the idea, which followed a similar reaction from the entrepreneurs who were looking for newness. 

The second Bird made an appearance in Santa Monica, Uber followed the suite and a number of millennials flooded in and showed a massive interest in choosing the commutation mode as their go-to last-mile travel option. The experience that eScooters gave them was that of an instant take back to childhood moment – something that was uber instagrammable. 

This cool quotient that came packaged with the eScooter model made it an instant hit. And soon after, the riders started taking notice of its time and cost-saving nature and the popularity increased further. Within no time, the electric scooter report and the whole business model caught the entrepreneurs attention who shifted their focus on entering the market at the back of this lucrative model. 

All this led to an electric scooter app market size that was untouchable. 

In all, in a matter of a few months, eScooter ride-sharing services were able to position them in a market where attention was coming in from all – riders and investors. A reason enough to get entrepreneurs attention. 

But the validations that eScooters app development is a good business move don’t just stop here. There were several other attached benefits of on-demand electric scooter apps as well. Let’s explore them in the next section of our guide to eScooter app development. 

Why is the eScooter Domain An Instant Hit Among Entrepreneurs?

Super-fast Return On Investment

The return on investment when entrepreneurs put their money in eScooters are a lot higher than any other product-based business. The amount that they spend in acquiring the e Scooters can easily be earned back after a few rides. 

It has the potential to become a lifetime source of earning at the back of a one-time investment. 

The Readymade Demand

The eScooter market solves the biggest worry of the entrepreneurs – what if there is no demand for my offering. In a matter of 2 years, e Scooters have created a very high demand for themselves in the market – something that makes it very beneficial for newcomers to enter the market. 

Less-explored Business Models

The Global on-demand electric scooters opportunities are huge. There are a number of features that businesses can offer along with the present pick and drop facility of eScooter apps. The app, mixed with Beacons, can be used to showcase discounts in nearby areas or they can be integrated with mom and pop shops to deliver goods in nearby areas. The potential for using eScooters is endless. And so is the electric scooter app market growth.

The Low Competition Rate

Even after being around for 1 to 2 years, the market players in the eScooter domain are still very limited. With the competition that can be counted on fingertips, the scope for a business to enter the market and create a brand name of their own is very high. 

While the reasons are primarily these and some others, the outcome that the mix of users and entrepreneurs’ demand has created is the lucrative market picture. 

The present time that the electric scooter app market size is operating in is one where the revenues and download rates on a very high note and the future that it is looking at is one which is driven by the promise of much greater user interest and market growth.  

The growth tangent that the on-demand eScooter domain has found itself on is partially the doing of the investors’ interest which has been at its peak ever since the launch of Bird. Something that has played a major role in bringing the electric scooter statistics on the upper side of the graph. 

Why Do Investors Love eScooters?

It is no surprise that investors are presently loving the eScooter based start-ups. While the main driving factor behind their fondness is FOMO, there are a number of other reasons why they are hopeful about positive electric scooter statistics. 

• eScooters are an instant hit among environment lovers, a group that is growing by thousands every passing minute. 
• Greater versatility. Everyone is in favor of the fact that the mobility industry needs variation. Cars and Bikes are not enough for users anymore, especially those who seek faster commutation time and cost-effective trips. 
• Low Maintenance. The mechanics of eScooters is such that there is hardly a chance for them to stop working properly or face any major maintenance expenses – something that makes the whole deal a lot more profitable. 
• Positive Unit Economics. The unit economics of eScooters, as you will read later in the article, are devised in such a way that the overall revenue that the entrepreneurs receive are always on the higher side as compared to the expenses that happen on a daily basis. 

The profit picture that every electric scooter market report presents have led to a number of entrepreneurs now entering the domain. With a few emerging as the top leaders. 

Top Players in the eScooter Sector

Seeing all the love that the investors from across the world are showering on the on-demand eScooter ridesharing sector, a number of entrepreneurs are entering the segment to make their presence and get a hefty share of the profit pie. 

However, there are a few companies that have been established as the top service providers of the micro-mobility domain. 

Here they are –

Now irrespective of who those famous brands are and how many more businesses are making their presence felt in the sector, the feature set that is commonly present in all of those applications are limited. 

eScooter App Features

While it’s true that innovation knows no bounds, there are some features that are commonly present in all the leading eScooter apps that are presently operative in the market. Being crucial to the main functioning, these are known as the must-have features that must be present in all the eScooter applications. Ones that have contributed immensely to the growing electric scooter app market size. 

Here are what those must-have eScooter app features are

A. QR Code

An inherent part of the eScooter app is the QR code. The QR code which is pasted on the eScooter has to be scanned by the application in order to start the ride. 

B. Real-Time Tracking

Using the feature, the users will be able to track where the eScooter is parked and how far they’ll have to walk to reach its destination.  

C. In-App Payment

Your users should be given the facility to make the payment of the application from within the app itself. This way, the user experience count would automatically increase. 

D. Ride History

This part of the app deals with showing the users their ride history, which contains the area covered and the cost that they had to pay. 

E. Push Notifications

Push notifications are a great way to engage app users. All the famous eScooter apps focus on offering well-timed push notifications aimed at keeping them interacting with the application multiple times a day. 

F. User Feedback

This is the element of your eScooter application that works around giving space for your users to give their feedback in terms of how the app is functioning or what changes they want to see being made in the application. 

G. Smart Lock

Using this feature, the users are able to lock the eScooter once their ride ends. This way, the next user will have to first unlock the vehicle from their app before they start their ride. 

The feature set that is commonly present in all the eScooter apps while devilishly simple in appearance, hold the potential to either make you an industry’s success story or can lead you to your demise. 

The one way you can ensure that you stay on the former’s side at all costs is by taking care of the technology stack. An operation that generally falls under the agency’s KRAs but something that an entrepreneur too needs to keep a tab on. 

eScooter App Tech Stack

The feature set that you read above while seemingly simple to develop are ones that come with a high scope of screw-up inducing elements if not developed right. Screw-ups that can have a grave impact on your business success rate. 

One way to ensure that your business does not face a grave future is by incorporating the right set of tech stack during the eScooter app development process. 

Now the choice of right technology stack while a difficult one to make becomes several steps easier when you have an idea of what other app companies functioning in the domain are based on. 

Well, here is the technology stack that the leading eScooter app companies have followed when answering how to develop eScooter app. 

The talk of app features and tech stack naturally builds up to the direction of eScooter app development cost – the sixth thing that the entrepreneurs are directly impacted by. 

Let us get you the answer to the element. 

Electric Scooter App Development Cost

While it is extremely difficult to estimate the mobile app development cost without a preliminary call detailing your requirements, we can help you with a rough estimate. 

Considering the feature set and tech stack that we shared above, the estimate of your eScooter app development cost will come somewhere across USD 60,000 to USD 80,000. But then again, this is simply a ballpark value. There are a number of factors that will come into play when deciding on the eScooter app development cost. 

In fact, there are two important cost factors that will get added into your overall answer to how much does it cost to develop eScooters app. 

Factors that are not related to the development process but hold a place in the expense chart – Acquisition and Maintenance cost. 

Both the cost variables play an important role in estimating the unit economics of working around an eScooter.

Let us look at the unit economics of Bird scooter to make the whole thing a lot clearer.  

Unit Economics of an eScooter app business like Bird

• An average Bird eScooter does around 5-6 trips every day, as the company disclosed in the June city council meeting. 
• The usual distance covered by every individual Bird trip is around 1.6 miles.
• The cost that riders have to pay to travel on Bird is $1 per trip plus extra $0.15 every minute after.
• Assuming that the average speed is of 7.5 miles per hour, normally a trip would last to up to 12.8 minutes.
• In this case, the average trip cost comes out to be $2.92.
• Now assuming that an eScooter takes around 5.5 trips every day, on an average the scooter would earn $16 on a daily basis.

While these figures details the revenue earned, let us look into the expenses, which majorly comes into two parts – Acquisition and Maintenance. 

The Xiomi eScooter that Bird presently uses sells for $500 on Amazon while only $399 in China. Assuming Bird is paying China’s price, the initial capital cost will get recouped in only a matter of 20 days. And even in case, it follows the price stated on Amazon, the time that it would take to make up the acquisition expense is 30 days. 

Now the main expense value that emerges here is of Maintenance.  

We know that Bird hires absolutely anyone to charge their scooters at night and then redeploy them on the streets in the morning. The amount that they pay to these chargers is $5 on every scotter. This leads to revenue of $11 per day, which was earlier $16.

In this unit economics, we still have not accounted for the lifetime of the eScooters and the oiling and greasing level maintenance – something that will bring down the revenue down. 

For a brand that is still at the ideation stage, it is important that you take into account the unit economics for only then you will be able to set the right costing chart. 

Here’s a hypothetical estimation of the unit economics that are currently at play in case of eScooter app companies, like Bird. 

One way you can cut down on the acquistion cost and the to-follow maintenance cost is by choosing to partner with the right eScooter manufacturers. 

The Choice of eScooter Manufacturers

To ease the process of searching for the right eScooter company to partner with, you can take a peek into our list of top eScooter manufacturers. The article entails all the manufacturers that you can partner with to start your scooter app journey on a profitable note. 

Now although you will get a list of eScooter brands that you can partner with, in the linked article, you will still have to look into the process of how to shortlist one of the many. 

What we suggest is using this shortlisting process – 

To start with you will first have to look at your user base – their age and the intent with which they would be leveraging your eScooter application.

And once you have done the study, you will have to choose between models that are best for covering small distances and then those which are deemed best for long distance travel. The choice that you will have to make on the basis of the speed and distance covered in a one-time charge.

When we talk about eScooters which are best suited for short distance, you should look for one that goes to up to 15+ miles on a single charge and runs on a speed of 10-15+ miles per hour.

In case of making a choice for your long-distance eScooter riders, you should go with the vehicles that give 30+ miles distance coverage per charge on the average speed of 40+ miles per hour.

Well, after everything’s said and noted, the last stage that you will have to cross – to get to the zone where your eScooter idea is converted into a full-fledged application – is finding an agency that would make the whole process easier.

How to Find an eScooter App Development Company

The process of finding an eScooter app development company is in many ways aligned with how you shortlist a mobile app development agency belonging to any other sector. 

The only core differences being in seeing if they have developed an eScooter app before along with certain other factors like –

• The technology stack that they hold an expertise in – if it is aligned with what the other eScooter apps are majorly based on. And if they are the ones that would make the app robust and scalable in the coming time. 
• The team size that they have employed in-house – it is very important to ensure that the team composition of the eScooter app builders in the app agency you are thinking of partnering with is such that they would be able to handle all the different parts of your mobile app process effortlessly and without any third-party help.
• The details of the work that they have done in the past – looking into the work the agency has done so far, especially on the on-demand front can be a great start of your partnership. Something as simple as the portfolio will get you an idea of what to expect from them, not just in terms of their development process but also the design guidelines that they follow.

• Seeing their ratings and reviews – there are a number of websites operative in the market today like Clutch and AppFutura etc which works around rating the different eScooter app development agencies around the world. These sites post ratings and reviews of different agencies with the intent of giving their complete picture to the entrepreneurs who are willing to enter the mobile app domain. 

You too should head over to these websites to see what other business have said about your shortlisted agencies. 

Besides these primary level points that have to be kept into consideration, you should also ensure that you have a first-round of discussion with the app development team before you settle on one partner. Doing this will get you insight into their thought process and the openness that they have in terms of exploration of an idea. 

Here was everything you have to know in order to place yourself in the future of electric scooter apps. The only thing left in you becoming a name in the electric scooter market share insights is the form below. 

Fill it up to get in touch with our team of eScooter app builders. 

The post How to Start eScooter App Business {An In-depth Guide} appeared first on Appinventiv.

eScooters are the most ecological & profitable subset of the on-demand commutation industry – one that is known to offer a return value that is higher than any other business model operating in the domain.

The perks that the sector offers is not something that has gone unidentified by entrepreneurs and investors alike – the two stakeholders who are all praises for the domain.

On one hand, entrepreneurs are on a constant lookout to make the last mile commutation (something that eScooters are here to ease) convenient for their users and profitable for them. On the other hand, investors out of FOMO are showing a massive inclination towards partnering with these same enthused entrepreneurs.

For an entrepreneur hoping to get their share of the profit pie, there is something that has to be done before you contact an eScooter app development company – get the base ready i.e. acquire a fleet of vehicles that you would link with your applications.

Now while the very intent of this article, as shared in the very start, is to give you a list of top electric scooter brands that would help you kickstart your business along with the answer to what do electric scooters cost, let us first appreciate the growth of the market that you are soon going to be a part of.

Here’s an infographic that shows how the eScooter market is growing –

Top Electric Scooter Brands That Can Help Set-up Your Last-Mile Ride Sharing Business

GOTRAX

GOTRAX is indeed the most popular scooter brands operating in the market today. And there are valid reasons behind this choice – it not just has everything you need to move from point A to point B but also come with a series of safety features that protect you when you are riding the bike.

With a number of eScooters falling under the umbrella of the prime electric scooter producer, it can be difficult to name one eScooter model as the best. But the one that we are going to talk about here is their GXL model.

There are two primary features that make the particular model the ideal choice for businesses looking to start their own eScooter sharing business.

A Powerful Battery & Motor

For you as an entrepreneur, the most important things are motor speed and battery life – elements that would keep a tab on your maintenance cost later. The GOTRAX GXL eScooter boasts of a speed limit of around 15.5 miles per hour in addition to a 12-mile range with a single charge.

Huge Tires

The scooter comes with a pair of 8.5” air-filled tires, which helps serve multiple purposes which all together only make the whole riding experience smoother. Being air-filled, it is not just the wear and tear that gets prevented but also the bounce effect gets reduced which is often caused by bumps and cracks.

Price: $300 for a single unit on Amazon

Glion

The next in our list of top electric scooter manufacturers that you could invest in to start your ride-sharing business is Glion, specifically its Dolly Foldable model. The eScooter operates on the patented folding mechanism that makes it all the more easier to put away for the people you will be giving the responsibility to charge your vehicle.

What we love about the Glion Dolly Foldable commuter electric scooter are these two offerings –

Suitcase

The brand offers you a suitcase to pack your lightweight electric scooter in. The case comes with soft padding which prevents the scooter from getting knocked from anything when inside the case.

Lithium-ion Battery

The battery which the scooter comes with can last for 15 miles on a single charge. Plus lithium ion material is known to hold the charge for a much larger time compared to other battery types.

Price: $499.99 per unit on the Glion website

Swagtron

It can be very difficult to make a listicle of eScooter companies which entrepreneurs can rely on for their business and not mention Swagtron scooters.

Their Swagger 5 Elite is the reason why they rule the market in multiple areas. There are two points that make the model a trustable name and an ideal choice for businesses.

High Speed

The eScooter can take your users between destinations on a speed of 18 miles per hour – something which is hands-down greater than the average 10 to 12 miles per hour speed.

The Application

The next best thing about this eScooter is the iOS and Android application that it comes with. Using the application you will be able to view your cruise control, speed, headlight, etc.

Price: $299.99 per unit on Amazon

Xiaomi

If your business model is designed around supporting long commute travel, you should go with the brand that is trusted by the leading eScooter ride sharing brand, Bird. Xiaomi, especially Xiaomi Mi lasts very long in a single charge while maintaining a good speed.

It also comes with two other features set that makes it the choice of top businesses.

Long-Lasting Battery

Most of the eScooters that you will see in the market will come with a battery life suited for 10 miles but Xiaomi comes as much-needed support for distances that cross that level. The battery life that you will find in the Xiaomi Mi scooter is one that boasts of 18.6 miles.

Double Brake System

The eScooter comes with a double braking system which would protect your users from any danger ahead well within time. It helps stop the rider within 13.1 feet – a great distance considering they will be traveling at around 15.5 miles per hour speed.

Price: $399 per unit price on Amazon

Xprit

While Xiaomi Mi is one of the top contenders when it comes to offering long distance riding convenience, Xprit is best suited for short distance rides. Denoted as one of the best value electric scooters, Xprit can run at 12 miles per hour – which is equal to walking at 4X speed – making it one of the fastest electric scooter in its class.

The two features that we feel make Xprit the ideal choice are:

Durability

It is made of aluminum alloy, which in itself known to be highly durable. The material is also one that protects your scooter from harsh weather conditions.

Above Average Battery Life

The battery life on Xprit is of 13 miles range, which is ideal if your users would be needing to ride to school or nearby store.

Price: $234.95 per unit price on Amazon

Razor

Razor, mainly its EcoSmart Metro Electric Scooter model is doing a great job at helping people take a leap from cars to scooters. The eScooter comes with a seat which makes it all the more convenient for the riders.

The reasons why you can look at this model for starting your business in the ride-sharing eScooter space are these two perks –

High Speed

The stylish eScooter that helps your users travel short mile distances can run on around 18 miles per hour speed.

Durability

Razor scooters are known for their high durability feature. And like all their other brands, EcoSmart Metro Electric Scooter also boasts of durability. It comes with a bamboo deck which is not just stylishly flexible but also offers suspension benefit to the riders.

Price: $579.99 per unit price is how much does a Razor scooter cost, as mentioned on their website

NANROBOT

Giving Xiomi Mi a strong competition in the eScooter market is NANROBOT brand. The company offers world-class models – NANROBOT D4 and D5+ Foldable – which are both equally amazing for you to start your eScooter ride-sharing business – placing the company in the list of top 5 electric scooters operational today.

Here the features of both the models that make them a worthy contender –

High Speed

Both the eScooter models run at a speed of 40 miles per hour – the speed limit which is followed by a car within the city’s limits!

Excellent Battery Life

While NANROBOT D4 promises to last to up to 45 miles on a single charge, NANROBOT D5+ Foldable scooter, on the other hand, lasts around 50 miles with the support of its Lithium-ion battery.

Price: $1280 per unit price on NANROBOT website

Costzon

The business is mainly focused on the teen riders – something that you will find operating in the case of its 24-Volt Electric Scooter model as well. Because it is deemed best for your teen users, it won’t be wise to expect a very high speed from this model.

Besides that here are the two things that make it a good considerable option.

Reasonable Speed

Keeping the safety factor of your young users in mind, this eScooter runs at a speed of around 8 miles per hour.

Safety Features

The scooter comes with a fast braking system and no-slip handlebars that makes the whole riding experience very smooth and safe for your young rider base.

LanMaker

Popular in the eScooter market under the name of Zimo, the eScooter manufacturers in China are soon becoming a hit name among the businesses who are willing to enter the last-mile ride-sharing space. There are two models specifically which are considered by up and coming entrepreneurs to a great extent – ZIMO S1 and ZIMO S1 PRO.

Both the models run at a speed of around 15.5 miles per hour. The mileage, however, is different in both the models. While ZIMO S1 gives a mileage of 21.7 miles, S1 PRO gives 31.25 miles per hour average.

Price: $450 to $540 per unit price

So here were your nine best electric scooters for 2019 that are proving to be the right contenders for you to start your last mile ride-sharing business with. But how do you choose which is the right model – one that would give the best possible experience to your rider group?

Find the answer in the section below.

How to Choose an eScooter for Starting Your Last-Mile Sharing Business?

Electric scooters, ever since the launch of brands like Bird and Lime have found an all new demand coming in from entrepreneurs like you who are entering the space with the intent to gain some profits from the flourishing last mile on-demand economy.

This increasing demand has led to a rise in the number of manufacturers entering the space as well – something that makes the budding entrepreneurs all the more fearful and confused for they don’t wish to make the wrong choice.

Here’s how you can make the right choice.

To start with you will first have to look at your user base – their age and the intent with which they would be leveraging your eScooter application.

And once you have done the study, you will have to choose between models that are best for covering small distances and then those which are deemed best for long distance travel. The choice that you will have to make on the basis of the speed and distance covered in a one-time charge.

When we talk about eScooters which are best suited for short distance, you should look for one that goes to up to 15+ miles on a single charge and runs on a speed of 10-15+ miles per hour.

In case of making a choice for your long distance eScooter riders, you should go with the vehicles that give 30+ miles distance coverage per charge on the average speed of 40+ miles plus hour.

The post List of Top Electric Scooter Companies to Fuel Your App Business appeared first on Appinventiv.