Electric Scooter Business as a Profitable Venture in 2024.

Electric Scooter Business in 2024: How to Start It and How Much Does It Cost?

Electric scooters are a growing trend today, as cities are expanding in area and population and people seek seamless transportation. Eco-friendly and convenient, e-scooters make a tempting alternative to conventional transport both private and public.

The global electric scooter market volume is forecasted to reach $19.43 billion in 2024 and an impressive $50.15 billion by 2032.

Noteworthy, experts expect that in 2026, e-scooter sharing revenue will be completely generated through online sales.

Therefore, entrepreneurs planning to start a scooter rental business have a solid motivation. Let’s explore the basics of launching this kind of company.

How to Start an Electric Scooter Business: A Brief with a Business Owner

Who can provide better insights into starting an e-scooter-sharing business than a successful startup owner? Here, we interviewed our client who owns a scooter rental business with 200 e-scooters. He has ambitious plans for the next year including growing his fleet to 600 scooters.

Is this your first business (scooter sharing), or have you already started businesses in other areas?

No, this is not my first business. I have extensive experience in the IT sector. Later, together with friends, I co-founded a game development company and ventured into the restaurant and bar industry.

What inspired you to start a scooter-sharing business?

Several years ago, I traveled to Europe. At that time, the electric scooter business was booming there. I bought my first electric scooter during my trip, which ultimately inspired me to start a scooter rental business.

How did you identify the demand for scooter-sharing in your area?

When we were launching our company, there were no similar projects in our region, but people had seen scooter sharing in Kyiv and some other large cities, so the demand was evident. After we started, the demand exceeded all expectations, which later attracted competitors to our region.

How many scooters are in your fleet? How did you determine the number of scooters needed to meet the demand?

We started with 100 scooters, expanded to 300 in the first season, and had 450 the following year. Due to competition in Kharkiv, we moved part of the fleet to Poltava. In 2024, we switched to a new scooter model, and our fleet consisted of 200 units. Our plans for this season include expanding our rental geography in Europe and increasing to 600 scooters.

Which scooters are most reliable for sharing?

Based on our experience, the best-suited and most reliable electric scooter for business is the factory-sharing model from Ninebot, specifically the Ninebot MAX PRO, which features a swappable battery and a reinforced frame.

What challenges did you face during the initial setup of your business?

Besides the standard issues related to establishing the project's structure, staffing, premises, charging, and logistics, the main challenges were negotiating the rules for operating within the city with local authorities, as regulations differ in each region. Additionally, there were difficulties in communication with competitors; fostering mutual assistance and healthy competition was not always successful and varied by region.

How do you differentiate your scooter-sharing service from competitors?

In the launch phase, our advantages originated in the scooter model—lightweight and comfortable. Furthermore, what set us apart was the quality of our marketing, our style on Instagram and other platforms, the flexibility of our tariffs, and the ability to quickly adapt to legal regulations. Additionally, we had a flexible CRM system. We also have an inherent advantage in Kharkiv, as we are locals in this city and started the first e-scooter business there, which helped support local projects.

How do you handle issues related to scooter vandalism or theft?

Unfortunately, vandalism and theft are indispensable parts of this business, and the incidence varies by region and area where the rentals are operated. Over four years, the incidence has slightly decreased. Installing security systems, 24/7 monitoring of scooters, and cooperation with law enforcement agencies have helped to minimize losses. Additionally, flexible alert settings in the CRM and route display configurations have enhanced our ability to manage and respond to these issues effectively.

How do you ensure the safety of your riders?

Ensuring the safety of our riders is a complex process, as it depends significantly on the city's infrastructure and traffic regulations. From our side, we can limit scooter speeds in hazardous areas and regularly promote safe riding practices, rules, and tips through social media channels.

How do you manage the logistics of charging and redistributing scooters?

Our CRM system and the statistical data it provides, along with a user-friendly service application, are the primary tools for managing the logistics of charging and redistributing scooters. Based on the CRM data, we can quickly and accurately respond to requests for scooter relocations and battery replacements. Additionally, mobile service teams in vehicles and employees on scooters monitor the distribution of scooters throughout the city to ensure optimal placement and availability.

What partnerships or collaborations have been crucial to your business success?

The main partnership is with local companies, ensuring well-established communication. Additionally, partnerships with supermarkets, cafes, and similar venues with space for scooter parking are crucial. However, these are the secondary indicators of electric scooter business success. The scooter model, optimized work processes, a good application, tariffs, and marketing are more important.

How do you approach marketing and promoting your scooter-sharing service?

We maintain an Instagram page, regularly announce promotions, bonuses, and promo codes, and offer flexible tariffs.

Did you prepare special offers or conditions for customers to stand out from the competition? Did it work?

In a severely competitive environment, a good coverage area, tariffs, and the number of scooters tend to be more effective than special offers. It's better to stand out with competitive pricing and an attractive scooter model.

Is it better to develop your own app or use existing solutions when starting the business?

In most cases, it is definitely better to use existing solutions, but it's important to choose carefully. If you have experience in the IT field and in developing such applications, have a team, and have sufficient funds, you can create your own app, but this does not guarantee success. With the intensive expansion of the scooter fleet in the future, you can consider the model of creating your own app or purchasing an existing one.

Tell us about the biggest f*ckup and what lesson you learned from it

The biggest screw-up on our part was, for example, when we failed to top up the account for the SMS distribution service, and customers couldn't register. Likewise, we once placed the faulty link to download the app. There were also mistakes in setting up riding zones and tariffs.

What are some of the biggest trends that you see shaping the future of the scooter-sharing industry?

The question is complex and depends on the region and country you operate in. I would highlight trends related to scooter technical specifications and the development of batteries, sensors, and other technology.

A global trend like cryptocurrency could probably be integrated into sharing projects. For instance, when you can earn coins during your scooter rides.

What advice would you give someone considering starting a scooter-sharing business?

For someone considering starting an electric scooter business, I would advise focusing on the following fundamental areas:

1. Establish Communication with Local Authorities. Effective communication and cooperation with local governments are crucial. This can help navigate regulatory challenges and ensure compliance with local laws.
2. Choose a Service Provider. Select a company that can provide you with the necessary software and app services for running a scooter-sharing system. Make sure they have a proven track record and reliable support.
3. Select the Right Scooter Model. The choice of a scooter will significantly affect both the user experience and the operational efficiency of your business. Choose durable models that have good battery life, and require low maintenance.
4. Invest in Quality for the App and Scooters. Do not compromise on the quality of the application and the scooters. The user interface of your app should be intuitive and easy to interact with, while the scooters should be robust and safe.

How Much Does It Cost to Start a Scooter Business in 2024

You can start your electric scooter rental business in 30 days if you use turnkey software solutions from Ezlines. Establishing a robust application is one of the crucial steps in launching a winning e-scooter sharing business. As our client indicated in his interview, this area also has numerous potential pitfalls. Therefore, you should approach it with particular attention and care.

While building a custom app from scratch may seem enticing at first sight, it requires significant time and investment. Thus, a tailored application may take up to 5 months, while the expenses can count by €30k-40k or even more.

On the other hand, entrepreneurs may take advantage of the existing applications with minimum setup and rental fees. This approach can become a cost- and time-saving alternative to custom development.

Apart from establishing a software solution, you’ll need to register the business, obtain scooters, shape the team, rent premises, and more. The table below introduces a breakdown of the essential costs you must prepare for your scooter business’s launching phase.

Ezlines offers comprehensive software for the e-scooter-sharing business. We provide effortless products for urban mobility, simplifying the life of entrepreneurs entering the sector.

Which benefits can you expect when cooperating with Ezlines?

• Expert advice and ongoing support. We provide expert consulting at the initial stages of your project to plan it effectively and optimize goals. Once the product is ready, we continue with technical support to ensure our solution smoothly integrates into your business processes.
• Flexible customization. We can adapt our product to your needs in terms of design and functionality to make it perfectly reflect your brand and meet your demands.
• Quick deployment. We arrange all processes to minimize time-to-market. With our solution, you’ll be able to run your innovative electric scooter rental business within 30 days.
• Reasonable pricing. The initial software setup can cost €8,100, with the software rental prices starting from €5 per scooter per month.

In Conclusion

The rising demand for eco-friendly transportation and the optimistic forecasts for e-scooter sharing business make this market segment alluring for entrepreneurs. Implementing e-scooter business model requires meticulous planning and thoughtful investment. This is where entrepreneurs can learn from the experience of successful business owners to avoid common pitfalls.

Calculating your expenses and securing funds is one of the core elements of your business plan. At the initial stage, you should focus on the costs covering the purchase of electric scooters, renting a storage location, obtaining the necessary legal documentation, arranging a team, buying insurance, and establishing a mobile application platform.

Partner with a trustworthy software developer to ensure optimal quality and quick launch terms at an affordable cost. This would assist in shaping a user-friendly service and making a smooth start to your scooter rental business.