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Electric scooter rental business plan in 2023

Table of contents.

Market analysis

Operations plan.

All the information collected in this article is recommendatory and is not a ready-made example of a scooter rental business plan. Since 2017 , RexSoft has been developing various solutions for the electric scooter rental business and helping entrepreneurs from all over the world build a successful business.

All calculations in the electric scooter rental business plan are made on the example of a contingent scooter sharing business with a fleet of 50 scooters , the location of the business is a US city with a population of 60,000 people.

Products and services

The electric scooter rental provider offers a scooter rental service to the population of a city in the USA (North Carolina). The company has a fleet of 50 scooters with a speed limit of 25 km/h and a range of 35-40 km. Allowed routes and parking areas for scooters are agreed with local government bodies. Renting scooters is a solution for moving around the city, avoiding traffic jams. Electric scooters are an ecological means of transport that reduces air and environmental pollution.

Everyone can use the scooter rental service thanks to the client application. Before using the scooter, the user registers in the application, familiarizes with the rules of safe scooter use, and replenishes the balance of his account. The renting scooter cost consists of the payment for unlocking (unlocking fee of 1 USD) and rate per minute - 0.15 to 0.30 USD .

Relevant videos about Scooter Rental Business Plan 🎥

In the city where the start of a scooter rental business is planned, this type of transport (scooter rental) is not available, so the implementation of this project is an alternative to city transport and taxis. The chosen place has many educational institutions and cultural monuments that attract young people from other cities and tourists. The target audience of this business is students, tourists, city residents aged 18-45.

Get consultation on starting an e-scooter sharing business

Get a consultation from RexSoft specialists, which will help you to start a scooter sharing business in 2 months with minimal costs and risks.

The operational plan consists of 2 stages : starting a scooter rental business (2 months) and operational activities. At the first stage, the following actions are planned:

At the 1st stage, the company plans to use the electric scooter sharing franchise from RexSoft allowing to start an e-scooter business within 2 months. It includes setting up, implementation of the necessary software ( mobile application for customers and CRM for managers ) and consultation, assistance with buying scooters fleet and spare parts for them. To register a business and find the necessary personnel, it is planned to use the services of competent consultants and specialized companies.

Operational activities include:

Business start-up cost

It takes 2 months to launch an electric scooter sharing business provided you decided to use the franchise by Rexsoft. However, the time frames will increase from 3 to 5 months if you choose to develop a custom scooter rental software from scratch. It’s unlikely that your business will start generating revenue from the very beginning since at the early stages you’ll have to register a business as well as configure the required software, purchase vehicles, find a premise, etc.

Below, we gathered basic expenses that you need to be prepared for at the beginning.

To sum up, the cost of an electric scooter sharing business start-up can reach nearly $70.000-110.000 .

Get an electric scooter rental franchise

The electric scooter rental franchise allows you to start your own business in 2 months. Use ready-made solutions from RexSoft to minimize costs and risks. Our team has been developing various solutions for this business since 2017.

Maintenance expenses

As your business is running and generating revenue, it’s time to think of maintenance expenses. You’ll need to cover all ongoing expenses such as rental costs, vehicles, taxes, salaries, etc. We summarized basic annual expenses in the table below.

So, annual expenses for maintenance of electric scooter sharing business are nearly $550.000-700.000 .

Operational activities are carried out by the business owner and 4 employees of the company. 2 specialists deal with replacing dead batteries, scooters transporting. 1 specialist - arranges battery charging, discovers places where there is a high demand for scooters, plans scooter parking lots, repairs scooters). 1 manager - supports service, responds to queries from users (for example, our app has an "Ask questions" section where the customer can ask the support service anything in real-time).

Marketing plan and advertising expenses

Since scooter rental is a new service in the city, marketing will be focused on popularizing this type of transport among tourists, students, and city residents. For this, we plan to use television advertising, video advertising in social networks (Facebook, Youtube, Instagram), as well as advertising on billboards and city lights. Freelancers and marketing agencies will be involved in marketing activities. The company plans to spend 5-10% of monthly income on marketing.

The income of electric scooter sharing business

The cost of renting a scooter consists of an unlocking fee of 1 USD and a rate per minute - 0.15 to 0.30 USD . Weather conditions (temperature must be above 0) in the USA allow electric scooter sharing business to function from March to November (270 days). We subtracted 15% from the season for days with unfavorable weather conditions (f.e rainy weather) when city residents prefer other means of transportation. So we have 230 days left. From our customers' experience, we know that 1 scooter can generate $70 revenue per day. So, during the season, 50 scooters can generate nearly $100,000 monthly income or $1,200,000 per season.

Scooter rental business profitability

So, the electric scooter sharing business is a highly profitable type of business , because in our case, the income from renting 50 scooters allows us to see the return on start-up investment (which is $70,000-110,000) very soon and cover the major maintenance expenses ($550,000-700,000) in one season.

Oleksandr Kryvotsiuk

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How to Start a Scooter Rental Business

A scooter rental business offers customers a fun and affordable option for short-term transportation. For most, scooters can be rented by hourly, half day, and whole day rates.

Ready to form your LLC? Check out the Top LLC Formation Services .

Learn how to start your own Scooter Rental Business and whether it is the right fit for you.

Scooter Rental Business Image

Start a scooter rental business by following these 10 steps:

There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your scooter rental business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

How much can you charge customers?

What will you name your business.

Luckily we have done a lot of this research for you.

What are the costs involved in opening a scooter rental business?

Since there is a necessity for scooters and a brick and mortar location, preferably within a tourist hub, there can be a substantial amount of investment capital needed. A typical used scooter, in good running condition, can cost between $300 and $800. If you average $500 each, a starter fleet of ten becomes a $5000 investment. Include store rental and insurance for the business and customer rentals and you could be looking at an initial investment upwards of $10,000-$12,000. Of course, this is dependent on your location and which insurance companies will supply you coverage. Tourist-heavy real estate and insurance for numerous low experience riders are both going to require a substantial fee. You will also need to factor in regular maintenance and repair costs as well as marketing and advertising costs, although the latter can be mitigated through usage of social media and store location.

What are the ongoing expenses for a scooter rental business?

Maintenance and service of the scooter and motorbike fleet will probably be your biggest ongoing expense. Insurance for the shop and coverage for riders will also be a regularly expected expense. Finally, rental of your brick and mortar location should be factored into regular cost analysis.

Who is the target market?

The target market is tourists and those on vacation, even if they live in the town they’re “vacationing” to. Specifically, younger riders, who want to explore your area or experienced riders who are away on vacation, yet still want to feel the wind in their hair, will be your demographic.

How does a scooter rental business make money?

The majority of the revenue will be generated from the customer rentals of the scooters. Some additional sales may be generated from impulse or customer loyalty buys. It is always advisable to have impulse items or novelty buys near your counter, as you will most likely encounter a tourist-oriented customer base for your rental company.

Scooter rentals are usually priced by the hour, a half or whole day, and weekly rates. Hourly rentals start around $25, with whole days closer to $65-$75 and weekly rates around the $200 range. These prices may fluctuate, depending on the location and clientele.

How much profit can a scooter rental business make?

Scooter rentals can be profitable, although often seasonal, depending on your location. Therefore it’s critical to save for the off season and invest when possible for the upcoming seasons. On average, a scooter rental business can see annual revenue in the $50,000-120,000 range.

How can you make your business more profitable?

Offer customers additional impulse buys and merchandise, related to your business and the tourist destination in which you operate. Most vacationers have budgeted for the trip and want to have a tangible item or two to take home for the memories. You can also offer rider extras, such as gloves, jackets, and even helmets and helmet add-ons. Some renters ride in their normal lives and will see your offers as an extension of their normal buying habits.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Scooter Rental Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

It's very important to secure your domain name before someone else does.

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Powered by godaddy.com, step 2: form a legal entity.

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your scooter rental business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.

Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.

Small Business Taxes

Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).

You can learn more about small business taxes in these guides:

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Open net 30 accounts

Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.

NetMany net 30 credit vendors report to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.

Recommended : Read our best net 30 vendors , guide and start building business credit.

Get a business credit card

Getting a business credit card helps you:

Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a scooter rental business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

For information about local licenses and permits:

Certificate of Occupancy

A scooter rental business is generally run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

Liability Waivers

To avoid liability and potential lawsuits, scooter rental businesses should have their clients sign waivers.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Learn more about General Liability Insurance .

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Recommended: Learn what business insurance for your Scooter Rental Business will cost.

Business Insurance for Scooter Rental Business

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a scooter rental business

Since much of your business will revolve around impulse or spur of the moment decisions, much of your advertising will need to occur in and around your business. Bright, eye-catching signage and flyers or stickers can be great for directing out of town customers your way. Social media advertising can also prove beneficial, especially if you are able to link with other businesses in your area, as you will all work as a financial ecosystem for the tourist dollars.

How to keep customers coming back

Safe, reliable, courteous, and personable are all important hallmarks for a successful scooter rental business. You may not see as many return customers if you are operating in a tourist-heavy location, so your connection with customers is vital. Word of mouth becomes your greatest customer asset. And, as mentioned above, being able to co-op your business with other retailers and rental companies in the area will be critical for directing customers to your front door.

Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

Using our website building guides , the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Start a Scooter Rental Business in your State

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Welcome to the Startup Savant podcast , where we interview real startup founders at every stage of the entrepreneurial journey, from launch to scale.

Is this Business Right For You?

If you have experience in retail sales or product rentals, knowledge of small engines, a strong work ethic, and a business mind, a scooter rental business could be your ticket to financial independence. Especially if you have a background in scooters and motorcycles, either as a rider or enthusiast, or from working in a motorbike retail business, your expertise could set you apart from the competition.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a scooter rental business?

A typical day in a scooter rental business focuses on customer rentals and maintaining your fleet of scooters and motorbikes. Greeting potential customers and conveying safety information and insurance practices has to be a regular aspect of your business in order to build a good public reputation. Ensuring your bikes and scooters are in good running order and are properly equipped for safety is also critical for success and goes hand in hand with your customer rentals. You will also find yourself working on:

What are some skills and experiences that will help you build a successful scooter rental business?

Being able to talk to customers is one of the greatest assets for this type of business. For the most part, customers are picking the company which seems professional, safe, and clean. You have to reassure them that their decision to employ your business was the correct one, and that you will provide safe, affordable fun.

You should also be able to:

What is the growth potential for a scooter rental business?

Rental companies, especially ones located in tourist-based economies, have seen an increase in their business more recently. If you find yourself in a tourist destination that is growing in popularity, there’s a good possibility you will see your business grow, as well. Historically, tourist rentals do well, as the customers have budgeted for entertainment before going on vacation or for having some fun during time off.

TRUiC's YouTube Channel

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Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a scooter rental business?

Make sure you research the success of competitors and similar businesses in the area. Is there room and customer demand for more business? Is your area growing in population for tourism and are scooters a safe and viable method of transportation in your area? You would be wise to understand which way public and political opinion sways for tourism and added vehicles on the streets. Additionally, make sure you have scooters which will be reliable and safe and aren’t too outdated. Customers will be insured for each rental, but accidents happen, so make sure you keep enough revenue put aside to cover surprise costs. Remember, if you don’t have a fleet of bikes to offer, your business will suffer and may never reach its potential.

Although starting your own independent business gives you all of the freedom and control, there is also an amount of risk involved. Therefore, it may be advisable to start out as a franchised rental business. This gives you the financial backing to get your feet wet and really find out the climate for such a business.

How and when to build a team

Starting out, much of the business can be run with a few individuals. Handling rentals, customer service issues, and maintaining the business aspects of the company are the main jobs to cover. As the business grows, a business manager can help to alleviate additional pressure in bookkeeping, allowing you to be the face of the company and grow your word of mouth reputation. As the business really takes off, you will want additional employees handling the rentals and customer service more and more. Developing a trusted staff is quite important for keeping the business on track, so choose wisely.

Get more ideas with our Business Ideas Generator .

Check out our How to Start a Business page.

Sign up at the Business Center to access useful tools for your business.

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business plan location scooter

How to Start a Scooter Rental Business

Scooters have become a popular way to travel short distances.   They are fun, easy to ride, and convenient.  If you’re in an area where scooters are used for transportation or recreation, a scooter rental business may be a great way for you to make money, have fun, and be your own boss.

Business Overview

A scooter rental business offers electric scooters for rent to customers by the hour, half-day, or full-day.  Local customers may rent them for a quick way to get around, and tourists may rent them to explore the area or just for fun.  Some scooter rental businesses also offer scooter tours of an area to see places of interest or landmarks.

Industry Summary

According to  Markets and Markets , the global bike and scooter rental market is projected to grow from $2.5 billion in 2019 to $10.1 billion by 2027.  According to  IBIS World , the demand has grown rapidly in metropolitan areas and on college campuses.  There has been some concern about the industry due to the lack of knowledge of the rules about scooter use on public roads, leading to regulation of the scooter rental industry.

Related Industries

Bicycle shop Bounce house rental Party rental Skate shop

Industry Trends

Dockless e-scooter rental is expected to see the largest growth within the industry.  Dockless means that scooters can be located and unlocked using a smartphone app.  This allows users to find the nearest scooter without having to go to a central location.  Scooter rental customers like the convenience, the avoidance of traffic congestion, and the eco-friendliness of emission-free transportation.

Target Market

Your target will be tourists, people who work or live in metropolitan locations, and potentially college students if you choose to locate near a campus.

Skills, Experience, and Education Useful in Running a Scooter Rental Business

There are several specific skills and education that you will need to open a scooter company.

Checklist for Starting a Scooter Rental Business

If you’re thinking about starting your own scooter rental business, there are a few things you should keep in mind. Here is a checklist of the essentials to get started.

Step 1:  Write a Business Plan

After coming up with the idea, the next step in starting your scooter rental company should be to write a business plan.  The business plan will make you focus on some important aspects of the business, such as who your customers are, how you plan to reach them, projecting sales and expenses, your value proposition to use for marketing, and more. You’ll also need to do some research to calculate exactly what your startup expenses will be and what your ongoing expenses will be.

Not only will a bank require you to have a business plan if you need financing, but multiple studies have shown that having a good business plan increases the odds of starting a successful business. Writing the plan helps you think through all the aspects of the business and then serves as a guide as you begin.

Related: How to write a business plan

Step 3:  Choose a Business Entity

A business entity (also referred to as a business structure) refers to how a business is legally organized to operate. There are four primary business structures to choose from, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). Each type of entity has its own pros and cons, such as liability exposure, costs, and administrative requirements.

When deciding on which business entity is best for a scooter rental business, it normally comes down to the sole proprietorship and Limited Liability Company.

A partnership opens the owners up to unnecessary personal liability because if a partner does something to get the business sued, or runs off with cash from the business, the other partners are personally liable to repay.   The corporation can be a good choice to minimize liability risk because it separates the business assets from the owner’s assets. If the corporation is sued or certain business debts can’t be paid back, the owners aren’t personally responsible to repay them. The downside to the corporation is that it is more complicated than all the other entities and requires more administration than the LLC. If you plan on raising a lot of investment though, the corporation is usually the better choice.

That leaves the sole proprietorship and LLC.

The sole proprietorship is the least expensive and easiest entity to start which is appealing. The downside is the owner is personally liable should anything happen to the business, which is an important consideration. The LLC offers the ability to operate as a sole proprietorship with the liability protection of a corporation. Depending on the state, the cost to form an LLC runs from $40 – $500, which is pretty inexpensive for protecting the owners from business-related lawsuits and certain debts.

Some popular LLC formation services include:

IncFile  - $0 plus state fees & free registered agent for 1 year!

IncAuthority  - $0 plus state fees & free registered agent the first year!

ZenBusiness  - $49 plus state fees & free registered agent for 1 year!

Step 3:  Name the Business

Finding the perfect scooter rental business name can be challenging. Not only does the name have to reflect what you do and be appealing to customers, but it also has to be available to use. You can check your state’s website to see if the name is available and register your name.  Your name should make you stand out, reflect your brand, and tell potential customers exactly what you do.

Step 4:  Select your Location

A good location for a scooter rental business is critical.  You need to be in an area with tourists, a metropolitan location, or near a college campus.  You must be somewhere with a large pool of potential customers and little competition from large competitors.

Related:   Choosing a business location

Step 5:  Apply for Business Licenses and Permits

Some cities have specific licensing for ridesharing businesses which may include scooter rentals.  Not following the local regulations properly can result in significant penalties or even restrictions in operating. Additionally, check with your state for specific license requirements for your scooter rental business, and contact your department of motor vehicles for scooter license and registration information.

In addition to scooter-specific requirements, there are also general business registrations to research. A few to consider include a business license, sales tax permit, and an Employer Identification Number.

Related:  Common business licenses, permits, and registrations by state

Step 6:  Find Financing

Coming up with a good business idea and having the skills to run it are one thing, but getting the funding to start a scooter rental business is another.  In order to get a loan, the borrower(s) will need to have good credit and be able to invest 15-25% of their money towards the total start-up costs.  Some entrepreneurs will tap into their own funds, a home equity loan, or credit cards, however, funding from the bank or investor may be necessary due to the high costs.

Related:  Finding the money to start a business

Step 7:  Open a Business Bank Account

Keeping your small business and personal finances in separate bank accounts is important to track the income and expenses of your business and identify trends.   Many banks offer free business checking accounts, so be sure to find a cost-effective option for your business.

Step 8:  Get your Marketing Plan in Place

A scooter rental business will need to set aside a budget to cover marketing costs on a continuous basis. Common marketing techniques for a scooter rental business include social media marketing and online advertising, as well as flyers.  Developing a website can be a significant expense, but it can also give your scooter rental business greater visibility online. Your location visibility and signage will also be a critical part of your marketing.

If you are fortunate enough to find a market without competitors or scooter startups like Lime or Bird or even ridesharing companies like Lyft, Uber, Skip, Spin, or Lime Scooters. Consider how you would market against them if they operated in your community.

Ongoing marketing will also be necessary to grow your customer base.  You need to have enough demand in your area for scooters to be successful, so if you live in a city where scooters have not gained popularity, you will have a rough time. Another challenge is that a scooter rental business will be seasonal to a certain extent, so you will need to plan for your downtime.

Related:  Low-cost ideas to market a new business

Every business is going to need a logo. Make a professional logo in no time with the free logo makers from BrandCrowd and Canva .

Step 9:  Get Business Insurance

Finally, there is some danger involved in scooter riding, so you need to be aware of liability and safety precautions, and regulations.  Make sure that you have proper insurance coverage to protect you in case of injuries.

There are several types of insurance to consider when starting a scooter rental business. A few of these include: – General liability insurance can help protect you from third-party claims of bodily injury and property damage. Considering this type of business is renting to riders with little experience driving a scooter, liability insurance is critical to protecting your investment. – Worker’s compensation insurance covers expenses like medical bills and legal fees that a business might face if an employee were ever hurt while working. This is critical in a Scooter Rental business in case one of your employees is injured. – Property and casualty insurance protects you if your equipment is damaged.

The cost to start a scooter rental business will vary depending on several factors. To get the most accurate idea of what to budget for insurance, request quotes from multiple providers. When comparing the quotes, consider not only the premiums but also how the plan exclusions, coverage limitations, and deductibles compare.

Related:  Common types of insurance a business may need

Step 10:  Hire Employees

You may need employees to help you run your scooter rental business, particularly to collect and redistribute scooters if you have a dockless rental business.

In addition to salary costs, your budget will also need to include other employee-related expenses. Workman’s comp insurance, unemployment insurance, and paid time off are common expenses that a business will need to cover when hiring staff.

Related : Hiring your first employee

Step 11:  Set up an Accounting System

Setting up an accounting system for your scooter rental business is critical to the long-term success of your business. Staying on top of taxes not only keeps the business out of trouble with the government but the numbers can be used to track and monitor trends and cash flow in the business and maximize profits.

Related:  Setting up the accounting for your business

The thought of accounting can be intimidating for a lot of new entrepreneurs. There are a number of ways of handling bookkeeping, from DIY to hiring a bookkeeper. These include: - Pen and paper - Low expense, but difficult to track. - Spreadsheet - Low expense, but easy to make errors. - Accounting software - Medium expense, but owner typically inputs expenses. Some great accounting software programs include Freshbooks or Wave Accounting. - Hire a bookkeeper - Higher expense, though very affordable at $100-$200 per month in most cases. A dedicated bookkeeper will probably save money because, in addition to handling all of the bookkeeping (so you can focus on the business), they also provide personalized tax advice and ensure the business is in compliance. Find bookkeepers in your local area or use a service like 800Accountant .

How much does it cost to start a scooter rental business?

Here are some of the typical costs you will face when you open a scooter rental business. – Setting up a business name and corporation costs approximately $200. – Business cards, brochures, postcards for marketing $200 – $300 – Website setup $100 –$200 for a basic, do it yourself website, $1,000 – $2,000 for a professional site – Electric scooter fleet with 10 scooters to start – $6,000 + – Vehicle to transport scooters for repairs, maintenance, or battery charging $10,000 + – Scooter app development $5,000 + – Location rental $1,500 – $3,000 + per month – Liability insurance, worker’s comp, property-casualty insurance, scooter insurance $1,000 – $3,000 – Initial marketing such as Facebook ads or search engine optimization for your website, flyers, and postcards, $500 -$1,000

How much can a scooter rental business owner make?

Prices for electric scooter rental are about $1 and 15 cents per minute.  If you have a consistent customer volume, you could make $50,000 – $100,000 per year in revenue before expenses.

The costs to run a scooter rental business are high and include ongoing insurance, maintenance, licensing, and more.  Also, scooters that are ridden often will need to be replaced fairly regularly.  Being ridden by multiple people creates a lot of wear and tear, so the average life span of a scooter is only 3 months. Don’t only look at the purchase price of the scooter. Consider the manufacturer’s quality and durability in the pricing calculation.

Another cost to be aware of is the cost of vandalism and theft, as these are major problems in the industry. Do you have a plan to reduce these costs, such as implementing GPS tracking to automatically set off an alarm or smart lock technology, or are you charging enough to replace your scooters?

Are there grants to start a scooter rental business?

It’s extremely rare to find a grant to start a scooter rental business. If you search for business grants, you will come across a lot of scams and misinformation. Occasionally an organization will offer grants to start a business, however, be skeptical and don’t provide any sensitive personal information or pay money to get more information.

Legitimate federal grants can be found at Grants.gov , and you can check on your state’s economic development office to see if they have any grants available.

What is the NAICS code for a scooter rental business?

The NAICS code for a scooter rental business is 532284, which is categorized under Recreational Goods Rental.

The NAICS code (North American Industry Classification System) is a federal system to classify different types of businesses for the collection and reporting of statistical data.

Related: What is a NAICS code?

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How to Start a Scooter Rental Business

Written by: Carolyn Young

Edited by: David Lepeska

Updated on March 1, 2023

How to Start a Scooter Rental Business

Investment range

$6,550 - $97,100

Revenue potential

$84,000 - $210,000 p.a.

Time to build

0 – 6 months

Profit potential

$50,000 - $126,000 p.a.

Industry trend

Scooters have finally hit the big-time. Electric shared scooters have in recent years become a popular mode of urban transport around the globe. In fact, the global bike and scooter rental market is set to more than quadruple by 2027, placing it among the world’s fastest-growing industries.  

You could start a scooter rental business either from a physical location in a tourist area or by developing an app for dockless e-scooters rented on a per-ride basis. Users simply unlock the scooter using the app and leave it where it is convenient. Either way, you can make good money and help people see and move about their city. 

Before you get started, though, you’ll need to understand the ins and outs of starting a business. Luckily, this step-by-step guide has you covered with all the insights you need to launch a lucrative scooter rental business.


Looking to form an LLC? Check out the Best LLC Formation Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Scooter rental industry trends

Industry size and growth.

scooter rental industry size and growth

Trends and challenges

Trends in the scooter rental industry include:

Challenges in the scooter rental industry include:

scooter rental industry Trends and Challenges

How much does it cost to start a scooter rental business?

Startup costs for a scooter rental business set up traditionally in a tourist location would cost about $9,500. Costs include the storefront rental and the purchase of five scooters. To start an e-scooter sharing business would cost at least $95,000 and could be much higher. The largest cost is the development of the app. 

You’ll need a handful of items to successfully launch your scooter rental business, including: 

How much can you earn from a scooter rental business?

Prices for scooter rental average about $15 per hour. Your profit margin after maintenance and overhead should be about 60%. This will assume you’ll start with a traditional scooter rental business. 

In your first year or two, you could rent five scooters for four hours each per day, 280 days of the year, bringing in $84,000 in annual revenue. This would mean more than $50,000 in profit, assuming that 60% margin. As your business gains traction, you could add five more to your scooter fleet and rent them five hours per day. With annual revenue of $210,000, you’d make a fantastic profit of $126,000.

scooter rental business earnings forecast

What barriers to entry are there?

There are a few barriers to entry for a scooter rental business. Your biggest challenges will be:

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Step 2: hone your idea.

Now that you know what’s involved in starting a scooter rental business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Why? Identify an opportunity  

Research scooter rental businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a scooter rental business that offers scooter tours, or that also offers electric bikes.

business plan location scooter

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as electric kick scooters or dockless scooters.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

In addition to scooter rental, you could offer scooter tours, the rental of electric bicycles, or even work your way up to larger electric vehicles. 

How much should you charge for scooter rentals?

Scooter rental prices are generally about $.25 per minute which is $15 per hour. After costs, you should aim for a profit margin of about 60%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be broad and may include tourists. You should spread out your marketing to include sites like TikTok, Instagram, and Facebook.

Where? Choose your business premises

You may need to rent out a small storefront to rent your scooters from and to store your scooters. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

scooter rental business idea rating

Step 3: Brainstorm a Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

what to include in a business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

business plan location scooter

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to scooter rental businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your scooter rental business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

types of business structures

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using Northwest Registered Agent’s online LLC formation service . They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

business plan location scooter

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

business plan location scooter

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

Bank and SBA loans are probably the best option, other than friends and family, for funding a scooter rental business. If you have a unique and innovative concept and a great plan for an e-scooter sharing business that could really stand out in the market, you might be able to attract venture capital or angel investors. You’d have to show a way that you could compete with the existing big players.

business plan location scooter

Step 8: Apply for Licenses/Permits

Starting a scooter rental business requires obtaining a number of licenses and permits from local, state, and federal governments.

You’ll want to get liability waivers that customers sign to absolve you from damages if injuries occur.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your scooter rental business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

types of business insurance

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as The Flybook , Bike Rental Manager , or RENTALL , to manage your scooter fleet inventory, reservations, and payments.

Some of your business will come from the casual passerby or online visitors, but you should still invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness. 

Once your website is up and running, link it to your social media accounts and vice versa. Social media is a great tool for promoting your business because you can create engaging posts that advertise your products: 

Kickstart Marketing

Take advantage of your website, social media presence, and real-life activities to increase awareness of your offerings and build your brand. Some suggestions include:

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

You can create your own website using services like WordPress , Wix , or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your scooter rental business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your scooter rental business could be:

unique selling proposition

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a scooter rental business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in scooter rentals for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in scooter rentals. You’ll probably generate new customers or find companies with which you could establish a partnership.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a scooter rental business include:

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Start Making Money!

Scooters are taking off, with the market set to expand four-fold by 2027. It’s a great time to seize the opportunity by starting a scooter rental business. It’s a fun business to get into, and you’ll be providing an eco-friendly means of travel for all sorts of people. It will take an investment, some hard work, and a great attitude, but you can ride this growth wave to serious success. 

After reading this guide, you’ve got the business know-how, so now it’s time to start revving the engine of your new scooter rental business! 

Scooter Rental Business FAQs

Yes, if you have a good-sized scooter fleet, you can make good money. You just need to choose your business model, have a good location, and offer a great service.

Generally, scooter rentals cost about $.25 a minute, or $15 an hour. Check scooter rental prices in your area to make sure you’re competitive.

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Home » Business ideas » Automotive Industry

How to Start a Scooter Rental Business in 19 Steps

Do you want to start a scooter rental business? If YES, here’s a complete guide to starting a scooter rental business with NO money and no experience . Scooters may not be regarded as the same as motorcycles because scooters are more fun and easy to ride on, and it has now become a very popular means of transport and recreation. The scooter rental business which is part of the recreation as well as specialty travel market is one that is growing at a faster rate than the travel industry.

Even though starting this business is advised for entrepreneurs who are already selling motorcycles and scooters, it doesn’t mean you cannot start the business afresh as you can partner with someone that sells motorcycles and scooters in order to give your business the boost it needs. In starting your scooter rental business, you should understand that you are different from someone who sells scooters for a living, even though you might want to engage in this later.

As one who intends to rent out scooters, it is expected that users will return the scooters within a definite period of time after signing an agreement to that effect. Those who usually rent scooters a lot are tourists who are looking for cheap and yet fun ways they can use to visit several places without having to use a vehicle.

As with any other business that you might be looking to start, it is essential that you have the needed passion and dedication to enable you achieve your goals and objectives. It is also essential that apart from being dedicated to also have a plan as well because this will allow you achieve your intended milestones more easily.

It is essential that you check what you will need to start the business within your locality so that you do not end up running into trouble with the authorities. Ask those who already run the business in your area what your typical checklist should be.

Even though you are going to be basically renting out scooters to your intended customers, it is also important that you have quality helmets that will go with the scooter rental because the helmets help keep your customers safe and secure.

The safety of your customers should be your highest priority and so when buying helmets, try not to buy one size but different sizes that will accommodate all your various customers, no matter the size of their heads.

Aside the equipment that you will need to purchase your scooter rental business, it is also important that you have a sufficient number of scooters available especially during the peak of the season so that you will not disappoint potential customers.

You need to determine if you will need security deposits or not, and lay out your methods of payment as well as what should be done by you and your customers in the event where rental fees are cancelled.

19 Steps to Starting a Scooter Rental Business in the United States of America

1. understand the industry.

The Millennial generation has changed the way money is being spent in America as there is more prioritization towards gaining new experiences rather than acquiring material items, as is evidenced in the way that money is being saved in order to go to new places or take part in new activities.

The changing pattern in which Americans are spending their money has had a positive impact on the recreational rental industry which has not only seen the industry growing tremendously, but it has also outpaced other retail and service industries as more people are keen on taking vacations as well as paying for equipment renting in order to enable them experience recreational activities.

The recreational rental industry generated more than $1 billion in 2014 and it has been predicted that the industry will continually see revenue increase at the rate of 5.7 percent every year for the periods between 2014 and 2017. The growth has slightly outpaced the 3.3 percent which was predicted for the retail services industry, therefore putting recreational rentals in top 40 percent of all the retail industries.

The increased popularity of renting as well as continued interest in gaining experiences during recreations would help the industry’s revenue to stay robust in the near future. According to a research report by Kentley, recreational rental firms generated an average of $500,000 in 2013, with most firms experiencing an annual revenue growth rate of nearly 3 percent between the periods of 2010 and 2013.

However, even though it seems as if operators in the industry are having good financial reports, about 51 percent have terrible margins and this is due to the fact that operating expenses keep growing every year and eventually outpacing revenue. In 2015, operating costs per recreational rental firm was at an average of $387,000 per annum.

One reason why only few firms are profitable is because most of the firms are focused on growth as they are using the revenue generated to provide new services or expand their businesses.

In 2014, the number of recreational rental firms grew by 2.8 percent and forecasts for the next five years (2014 to 2019) has it that the growth average for firms in the industry will remain under 3 percent, even though the number of rental establishments will grow by at least 3 percent and will continue to grow by 2.3 percent every year for the next five years (2014 to 2019).

It is expected that the scooter market and electric motorcycles will generate more than $55 billion by 2024 according to Global market insights, Inc. It is expected that the market size will continue to increase due to the fact that scooters have environmental benefits over others that are powered with gasoline.

Also, they are vibration-free which means there are fewer parts moving. Another factor is the fact that it does not require much in areas of maintenance and it is more reliable which is why it is increasingly popular amongst consumers.

Electric scooters can be used for both commercial and personal use and the fact that it is convenient and allows for easy mobility is why the urban population usually prefers them over transport modes like bicycles.

The regulatory bodies in several countries are encouraging the use of eco-friendly vehicles such as scooters by proving operators with a tax concession. The ecosystem factor is why a large number of players are not only developing efficient batteries in order to ensure high performance, but also looking to make them as eco-friendly as possible.

According to Spinlister, the local American shop has not only been in decline since the year 2001, revenues from sectors like rentals have also been decreasing as well because even though more of the Millennial generation prefer to rent as opposed to owning, several factors have been stopping the industry from being on top and this is due to the fact that rental stores are spending more in keeping their businesses afloat especially when accidents occur and the scooters will need to be repaired leading to loss of revenue.

2. Conduct Market Research and Feasibility Studies

The demography and psychographic composition of those that require the services of a scooter rental business include but are not limited to tourists. This is because tourists rent scooters in order to visit new places as well as gain experience.

The category of those that are likely to rent the scooters are the Millennial generation who are above their twenties going down to their mid-forties.

3. Decide What Niche to Concentrate On

Starting a scooter rental business doesn’t really give one the chance of offering niche services. Niche ideas are usually delved into by entrepreneurs because they are looking to expand their services while also generating more revenue for their business.

Engaging in niche services also allows the entrepreneur to stand out from other competitors. It is however important that you research on what niche ideas are available within your industry and how much revenue you are likely to generate if you go into it.

Some of the niche ideas that are available within this particular business include;

The Level of Competition in the Industry

Because you are going to locate your business in an area where you are likely to get a lot of customers, it is safe to assume that you will have a lot of competition not only from other scooter rental businesses but also from other rental businesses as those who mostly rent scooters are tourists and they will be looking to try as many experiences as possible that will not be limited to just scooters.

What customers are however on the lookout for when patronizing a scooter rental business is that the scooters are well maintained so as not to have any mechanical breakdowns when they are using it. Customers are also looking to rent a scooter that they can easily afford or that will allow them get back their fees without much hassles if they cancel.

The Millennial generation has opened the door for the recreational rental industry to boom and so therefore if you are looking to start your scooter rental business in the United States of America, you should expect to face a lot of competition from other scooter rental businesses especially in the area where you are looking to run the business.

4. Know the Major Competitors in the Industry

Even though most scooter rental businesses are popular in the area in which they are located, those that are more popular than their counterparts are those that are in areas where there are more tourists’ visit. There are several factors that make a business become popular and some of the major factors are; quality of service, quality of customer care and affordability.

Some of the well-known scooter rental businesses in the industry depending on their location are;

Economic Analysis

Scooter rental operators have increasingly started using technology to provide convenience to their customers. This has caused most of the operators to streamline their membership procedures in order to make scooters available to customers within the shortest amount of time.

The high penetration of the internet as well as increase in smartphone users have made this possible.

Globally, the market is being fueled by an increase in how many tourists now prefer to use the roads during their travel in places like America and India. This has pushed the CAGR to nearly 5 percent.

Even though the Millennial generation has popularized the recreation rental industry, revenue hasn’t increased so much for the industry as operating expenses has been threatening profit margins.

No matter how well kept a scooter is, accidents are bound to happen and this means the time spent by the mechanic in trying to repair damages will cause a loss of revenue on that scooter.

Even though the recreational rental industry has become quite popular, scooter rentals aren’t getting the largest share of the market as most tourists prefer to rent boats in order to be able to engage in water sports. In 2013 alone, more than 88 million people participated in some form of water sports.

5. Decide Whether to Buy a Franchise or Start from Scratch

One decision that you will need to make when starting your business is whether to start from scratch or buy a franchise. While each decision has its pros and cons, it is best that you go for that which will allow you achieve your intended goals and objectives quicker. Buying a franchise is not a bad idea especially as it helps the entrepreneur have a quicker start compared to those that will be starting from the scratch.

When buying a franchise, you also buy mentorship and guidance which enables you to not only learn the ropes of the business faster but you also won’t be in control of certain aspects such as marketing and others that can be overwhelming for an entrepreneur that is just starting the business.

If you are however looking to start from scratch, you can either start totally from scratch or you can buy an already existing business structure. The latter will be to your advantage because you do not have to worry about getting certain equipment or worrying about location for your business.

Also, it makes it easier to approach investors who prefer to loan money to a business that is already in existence or at least has structures in place than that which is still a business idea. Having a business plan in place will help you start your business easily as this will act as a guide to certain actions and decisions that you will make.

6. Know the Possible Threats and Challenges You Will Face

In every business environment, threats and challenges exist and how you handle them determines how ready you are for the business you are looking to start up. Even though it is important to be prepared for whatever challenges you might likely face, not all threats and challenges can be easily handled and so when this happens, the best you can do is wait for the moments to pass while remaining optimistic.

Some of the threats and challenges that you are therefore likely to face when starting your scooter rental business are; having to deal with competition from other existing scooter rental businesses, having to deal with accidents and repairs from damaged scooters, having to attract customers, and the start-up capital required to start the business.

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

When looking to start a business, knowing the legal entity that would be best for your business is necessary because of the amount of impact it can have on the business.

There are certain businesses that can be run without the entrepreneur being bothered about what kind of legal entity would be suitable for it. The scooter rental business is not one of such businesses due to the amount of risk that the business carries.

There are majorly five kinds of legal entities that are available to entrepreneurs in the United States of America and they are sole proprietorship, partnership, Limited Liability Company (LLC), S Corporation and C Corporation.

When looking to choose which legal entity will best suit your business, you can use certain deciding factors such as ease of setup, ownership and control, flexibility, taxation structure and degree of liability or you get in touch with an attorney who has a thorough knowledge of the industry you are into to help you out.

While the sole proprietorship might look like the easiest legal entity to go with especially as most entrepreneurs in the United States usually go for it; this might not be the best legal entity for your business due to the amount of liability that comes with starting or running this kind of business.

While the partnership kind of legal entity is not bad, it also exposes you and those you are looking to partner with to liability issues and might also serve as a limiting factor when you are looking to source for a loan for your business.

The LLC kind of legal entity is one that shields the owner to a certain degree because the business is seen as a separate legal entity from those that own it. This means that liability is limited for the owners.

Even though this kind of entity is regarded to as a state creation, it is usually preferred by entrepreneurs due to its flexibility and the fact that tax paid on personal income return is same as the sole proprietorship.

The corporation is very similar to the LLC in terms of liability; however it is regarded as a more formal legal entity. Entrepreneurs using this kind of legal entity are often in certain kinds of businesses that will allow them raise stock to the general public. There is the C corporation and the S corporation and the latter is much more similar to the LLC in terms of taxation and flexibility than the former.

8. Choose a Catchy Business Name from the ideas Below

When looking to start a business, it is important that you get a suitable name for your business because this is how your business will be identified by your potential customers, your competitors as well as other stakeholders within the industry.

Choosing a suitable name for one’s business is nothing easy as you will need to ensure that your business name is memorable, catchy and indicative of the industry that you are in.

Below are some of the catchy business name ideas that is suitable for your scooter rental business;

9. Discuss With an Agent to Know the Best Insurance Policies for You

Insurance for scooter rental business might not be so easy to find because of the risks associated with the activity of riding a scooter. Therefore, with the difficulty that comes with finding the right insurance policies for your scooter rental business, you might need to take your time in looking for the right insurance agent or broker that will help point out carriers that will help in carrying the risks that comes with running your business.

Ensure that whatever carrier you choose is one that will not only help manage your risk but also help your business to keep flourishing.

Below are some of the insurance policies that you might need to buy when looking to start your scooter rental business in the United States;

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

The scooter rental business is one where you will rent out scooters to those that need it for a short or long term period and therefore it will not require you to buy any sort of intellectual property protection.

If however you feel it is vital to protect your company name, logo and any other concepts you deem worthy, you can get a lawyer to help you out but you should note that entrepreneurs in this industry do not consider this a priority.

11. Get the Necessary Professional Certification

Even though there might be need for you to have little technical knowledge so that you can carry out light maintenance; all that is needed for you is to be able to have the start-up capital with which to start the business.

There is therefore no need to have any professional certification when starting or running your scooter rental business.

12. Get the Necessary Legal Documents You Need to Operate

When looking to start your scooter rental business, it is necessary that you get your legal documents in place because it is necessary to run your business without any hassles. If you do not know the documents you will need to start your business, you might need to talk with others running the kind of business that you are in or get in touch with an attorney who knows what you will need in order to get the right documents that you will need to start your business with.

Below are some of the legal documents that you will need to start your scooter rental business;

13. Raise the Needed Startup Capital

Having start-up capital for your business is very important because it is the capital that will be used to run the business and generate revenue till the business starts paying for itself.

Sourcing for start-up capital is not easy for any entrepreneur which is why it s important to have a business plan at hand in order to be able to convince investors on why investing in your business will be of huge benefit to them.

Below are some of the financing options that is available to you for your scooter rental business;

14. Choose a Suitable Location for your Business

In any business that any entrepreneur is looking to start, location is always such a huge deal which is why a great deal of thought is given to where a business is to be located because of the degree of impact the location has on the business.

Most scooter rental businesses are usually located close to a beach or close to the hub of tourists since these are the ones that are more likely to rent a scooter than the locals.

If you live in an area close to the beach and do not have sufficient funds for your business, then you might need to partner with a local hotel and place signs in vital places in order to get the attention of your potential market depending on the scale of your business, but if you will need to rent a store, ensure that it is as conspicuous as possible.

When choosing a location with which to run your scooter rental business, ensure that it is in a suitable location that will attract a lot of tourists and ensure that the facility you intend to choose has a large parking facility so your scooters can be stored and also seen by your potential customers.

It is essential that the location you intend to choose for your business is one that has a storefront so that you can easily display other materials for sale and also meet and assist the customers who will patronize the store.

If you aren’t sure of the right location for your business, ensure that you contact a commercial real estate agent with knowledge about your kind of business to help you choose a location that will be most suitable for your business.

15. Hire Employees for your Technical and Manpower Needs

Even though tourists are usually regarded as the major customers for these kind of businesses, there are also locals that will be looking to rent scooters every once in a while for various reasons and so it is necessary that you have designed your business in a way that will allow you to cater to the different customers you are likely to get.

While this is a revenue generating business, you should also be aware of the expenses that you will incur in order to run the business to a reasonable standard. Even though scooters are generally easy to operate, there will still be a number of your customers getting into accidents or damaging the scooter, and these are expenses and situations that you should be prepared to face at every moment the business is operational.

It is important that you purchase your scooters from a reputable dealer so that you are able to reach them and amicably settle any complaints that might arise from the scooters you have purchased.

To get reputable dealers, you might need to conduct a research online or check with your local Chamber of Commerce. Ensure that the scooters you have purchased are enough to start your business and run it successfully.

If you are going to be running a medium or large scale operation, it is vital that you build a solid business structure where you will hire dependable hands to help run your business efficiently. Even though you will not need to employ much, you will still need to employ an office manager, front desk officer, marketing and sales executives, account officer and security guard.

From the above break down, you will need at least 5 key people to run your scooter rental business successfully.

The Service Delivery Process of the Business

Once you have decided on starting your scooter rental business, it is important that you apply for a business license and also find out the necessary documents and licenses you will need to start your business and run it with as less hassles as possible.

Once the legal ground has been taken care of, knowing reputable dealers from which to purchase your scooters is necessary so that you can have a warranty on the products that you have purchased.

Decide what packages you are going to offer your potential clients and what the payment structure would be like plus how you intend to handle cancellations.

16. Write a Marketing Plan Packed With ideas & Strategies

Marketing your scooter rental business successfully might not be easy as it would be for other businesses because a large base of your potential market are those that have no idea whatsoever about your business and so one of the easiest ways you can catch their attention is ensuring that you are located in a place that is conspicuous and has ample traffic. Even though this might likely cost more, it will allow you generate enough revenue to cover your start-up and operating costs.

Marketing, if not carefully handled, can become an avenue for a business to waste money on campaigns without getting customers back in return. This is why it is oftentimes important to have a marketing plan in place. Marketing is more than an avenue to generate funds, it is also a way entrepreneurs can generate the needed awareness for their business and then convert this awareness to money.

Most entrepreneurs starting out either get a marketing consultant to help them with crafting the right marketing strategies or hire marketing executives that understand what goals they are trying to achieve to help out in creating, reviewing and modifying strategies.

The internet has also made it very easy for entrepreneurs to put their businesses out there in order to be able to gain more attention from the intended target market especially with the rising use of smartphones.

Below are some of the marketing ideas and strategies that can be used for this particular business;

17. Develop Iron-clad Competitive Strategies to Help You Win

The scooter rental business usually peaks during summer when tourists usually visit a place, state or country and so this means that you may likely not be the only scooter rental business around and therefore will need strategies that will allow you to not only attract potential customers but also enable you to compete against your competitors. If you do not have any strategies in place to win over your competitors, then it is likely that you will lose a lot of customers and revenue.

Some of the competitive strategies that you should therefore have in place when looking to start in this particular business include; ensuring that you have varying rental packages for your customers, ensuring that your rates are fair and that you offer value added services to your customers as well.

18. Brainstorm Possible Ways to Retain Clients & Customers

Attracting customers for your business is one way to generate revenue for your business, which is why there are plentiful strategies that help an entrepreneur easily attract the needed clients for their business.

However, while customer attraction is key to the survival of a business, ensuring that a high number of them are retained is key to continued growth and survival of the business. Even though most tourists might not come back to rent your scooters, once they are satisfied with your services, they can easily refer others to your scooter rental store.

It is a known fact that businesses that retained a high number of their customers end up spending less than those that continually lose customers.

Some of the reasons why customers usually leave a brand for another is poor quality of service, terrible customer care, high charges and a host of other factors, so it is in the interest of your business to ensure that your services are top notch and that your rates are competitive enough.

19. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

In every business that is started, entrepreneurs often have to seek for ways they can continually make their business visible. This is because the more visible a business, the higher the chance of increasing its revenue generation.

Already successful companies understand how much being visible helps their business and so always strive to set aside money to continue to remain visible and positively communicate their brand to their potential target market.

Like all important decisions that you will make when you are starting your business, it is important that you have undertaken a thorough research about your target market in order to know what strategies will most likely suit them and so that you do not waste time and resources on strategies that will not work for your business.

Below are some of the strategies you can use to boost awareness and create a corporate identity for your scooter rental business;

More on Automotive Industry

UK Small Business Startups and Funding

Motor Scooter Dealer Small Business Idea and Business Plan

Starting your own small business in the UK isn’t easy but having a properly developed business plan will help you achieve success.

To start a Motor Scooter Dealer business in the UK, take the time and explain the idea via a business plan.

Understanding all of the aspects of the business idea will be the key to getting the Motor Scooter Dealer business running like a well-oiled machine. The business plan you develop will help you organize the elements needed into a strategy that you can actually use to startup, by paving a clear road map as to what you need to follow for the lifespan of your business.

Starting a Motor Scooter Dealer business isn’t easy, but when done right, it can lead to a lot of success.

To help you get started, you can use the free business plan builder tool to develop your own Motor Scooter Dealer business plan.

The business plan template is very easy to use, is interactive and will quickly and easily help you create your business plan just by answering the needed questions about your small business idea.

Create your own Motor Scooter Dealer business plan for free using the Business Plan Builder

The free business plan template builder is divided into a few easy to follow steps.

The free business plan builder template is provided by UKStartups.org to help you develop your own business plan. For step by step guidance, see the 5 steps below.

Once completed, the result will be a clean, professional plan that will help you start your own Motor Scooter Dealer small business in the UK.

When you have completed your Motor Scooter Dealer business plan, the next step will be to find available funding that will help, or to speak with a funding adviser who will assist you each step of the way to securing the needed funds to make your Motor Scooter Dealer business startup.

If you are looking to limit your startup costs when starting up a Motor Scooter Dealer small business in the UK, this free business plan builder tool will be it.

Starting a Motor Scooter Dealer business is only one of the ways others have used this free business plan tool. There are hundreds of different ideas you can start, and if you need guidance, do reach out to a UKStartups expert to get the needed assistance and guidance.

Step 1. Your business information

To develop a proper Motor Scooter Dealer business plan with the free business plan builder template, it is important to answer each of the questions about your business to the best of your abilities.

What is your business? What are the products/services you provide? Who are your customers? What are your goals…etc?

Having a clear explanation will help you create a in-depth business plan that you can actually use to start the Motor Scooter Dealer business and to apply for needed funding to cover your startup costs.

Step 2. Projecting your revenues/income

The Motor Scooter Dealer industry can have great results. Planning and projecting the financial figures to approximate what you will make each year is crucial to building a strong business plan.

What do you think your business will make from each of its products/services? Simply list your products/services, enter the appropriate financial figures (costs and expenses).

If you don’t have the figures, in many cases it is recommended to do a a bit more research on other Motor Scooter Dealer businesses locally and within your own region to get an idea of potential revenue. You can do your best to estimate the figures and growth potential.

If you need assistance in projecting, you can always contact UK Startups funding experts for the help.

Step 3. Your business market

As a Motor Scooter Dealer business, having a clear explanation of the market and industry that you are in will help you plan for the figure and will ensure you can take the business to the next level.

Explain your location of business, share specifics about your customers, showcase your competition and explain the advantages you have over your competition.

Step 4. The future plan

Starting your own Motor Scooter Dealer business and getting it off the ground is important to you.

No matter if you’re planning on applying for government funding for your Motor Scooter Dealer business or not, it is important to plan out the future and provide an explanation of how you will grow the business. This means explaining your marketing plan, your sales strategy and clearly outlining a growth plan for the next few years.

Be sure to break this down step by step to show how you intend on making sure your Motor Scooter Dealer business can grow each year.

Keep in mind that often business plans are focused on key people. Be sure to discuss yourself, your role and any other key figures in the business as well.

Step 5. The financials

In the end, it all comes down to the financials. If you are seeking funding, or not – the business plan you develop needs to have clearly defined financials or projections. The business plan builder tool makes it easy to develop your financial charts by simply entering your expected revenues per month and year. If you don’t have the figures as it’s a new business be sure to project the figures based on your expectations. If you need help with this, ask the UK Startups experts .

A clear breakdown of your funding needs is also recommended in case you are seeking funding and this free business plan template will help you with exactly that. When developing your Motor Scooter Dealer business plan using this free template, the above 5 steps are recommended in order to succeed. While there are other key points that will assist you in starting your business, finding funding...etc, the free template will help put you on the right path

Be sure to request a professional to review your business plan , to answer any questions you may have and to help you with the funding search once you’ve done the initial free template. You can request this directly via UKStartups.org and through the Small Business Startup Platform as a member.

If starting a Motor Scooter Dealer business is just one of your ideas, perhaps considering other options, here are some popular small business’s others have chosen to startup

How to Start a Scooter Business

by Nicholas Katers

Published on 26 Sep 2017

The scooter industry has grown in the early 21st century as American consumers see the virtues of these light bikes. Scooters are used frequently in downtown districts and college campuses that are difficult to navigate by car or bus. The success of scooter manufacturers like Vespa along with scooter divisions at Honda and Harley Davidson have led entrepreneurs to start their own scooter businesses. The ideal entry point into this business is a small retail store that caters to young professionals motivated to buy these diminutive vehicles.

Business plan

Business license

Warranty, rental and lease forms

Complete a business plan for your scooter store that highlights your target market and five-year goals. Conduct your own market research by looking at the number of scooter stores in your area and concentrations of potential customers like college students and young professionals. Convince lenders and investors about your scooter company's viability with modest profit goals and transparency about initial expenses.

Search for a retail storefront within minutes of a college campus or downtown district to maximize foot traffic. Your storefront should be relatively small with a counter area, back room and workshop for repairs. Look for retail space with sidewalk space in the front and customer parking in the rear.

Start a website for your scooter business that is updated regularly with available inventory. Your scooter website should be filled with photos, pricing and service information to encourage consumers to choose your shop over others. The main page should feature a contact form for prospective buyers looking for answers about pricing, availability and store location.

Register for a business license with local and state agencies to start your scooter business. In addition to a general operating license, your scooter business must register with the state revenue department to handle income and sales tax deductions.

Consult with a loan officer at your bank about financing options for future customers. Your loan officer may be able to arrange slightly discounted interest rates for scooter renters and lessees with excellent credit. Work through the same bank used for your business startup loan to take advantage of this pre-existing relationship.

Research scooter wholesalers like X-Treme Scooters for floor models and ordering information. Since your first storefront will have little space for displays, you should order one or two units of each model to show your selection to buyers. Your shop can order scooters on demand with a small down payment to avoid acquiring unnecessary units and cluttering your backroom.

Limit your scooter store's staff in the early months to keep monthly expenses low. Hire a motorcycle or auto mechanic to handle scooter repairs and maintenance if you have little experience with vehicle repair. Train one to two sales people on filling out order forms, contacting suppliers and handling customer requests to ease your daily workload.

Design lease and rental forms for your scooter business for consumers who are not yet ready to buy your inventory. Your lease forms should feature the number of months or miles in the lease term, monthly payments and charges applied for damage after the leased scooter is returned. The rental form should feature a vehicle inventory sheet, provisions for charging customer credit cards for scooter damage and a release of liability for illegal use of the vehicle by the renter.

Advertise your scooter business on college campuses, sporting-goods stores and other venues where your target demographic shops. Print leaflets, simple posters and table tents that can be distributed ahead of your company's grand opening. Include your street address, website address and a clever slogan on each advertisement to attract motivated scooter fans.

Generate revenue after scooters are purchased with basic maintenance packages available to new owners. Your maintenance package should be priced slightly lower than the typical costs of oil changes, tire changes and vehicle inspections. As scooter owners return to redeem maintenance coupons, tell your salespeople to up-sell your customers on comprehensive maintenance services.

Protect each scooter sold by your business by honoring manufacturer warranties and offering your own guarantee. Stock wheels, spark plugs and other parts produced by scooter manufacturers to handle warranty requests. Your guarantee can cover parts and labor from your shop that prove to be defective within a certain number of miles.

Sponsor individual competitors and teams participating in scooter racing leagues like the New Hampshire Scooter Club. This club holds individual, relay and team races in the spring and summer each year using performance scooters. Offer basic maintenance services, accessories and branded clothing to your sponsored racers in exchange for exposing your business to scooter fans.

Sample Business Plan: Bob’s Rent-A-Bike

Business Know-How

Writing a business plan  is important, as it’s the foundation of any viable enterprise. Your business plan should be a living and breathing document that contains your goals and your plan for reaching them.

In the early planning stages of your business however, you may want to consider starting with a simpler, one page business plan. Use our bike business plan sample to help you create yours.

Let’s look at a sample business plan to help you get your business started!

Business Plan Sample


Bob Adams, Founder

1000 Main Street


This business plan is confidential.

Related: A Guide to Writing Your First Business Plan  

Business Concept

We will be part of the large and growing bicycle rental industry. Our target market is summer visitors to Cape Cod, particularly central Cape Cod. We will be differentiated from competitors in that we will deliver rental bicycles directly to our customers at their motels, campsites, or summer rental residences.

Current Situation

We are a start-up business founded as a Limited Liability Company (LLC). At this point we have assembled a detailed operating plan, including promotional plans. We have arranged access to a station wagon to deliver bicycles and a garage to store them in. We have started to carefully buy used bicycles in excellent quality at very reasonable prices.

We have available capital of $2,500 from the founder’s personal savings and we seek an additional $7,500 investment from outside investors in order to be able to complete the purchase of our rental fleet.

Key Success Factors

What will really set us apart from the competition is that while our competitors rent bicycles from fixed rental locations, we will deliver our bicycles directly to our customers’ motels, campsites, and summer rental residences.

Another important differential is that our cost base is dramatically lower than that of our competitors. For one, we are going to buy used bicycles in a very disciplined way to build our rental fleet, whereas our competitors buy new bicycles. We estimate that we can buy quality used bicycles for approximately half the cost our competitors spend for new bicycles.

We will also have very little labor cost. Bob will draw a salary of just $10 per hour. There are other employees. Bob has ridden bicycles for many years, is handy with tools, and believes he can do most basic bicycle repairs himself.

Bob is young, energetic, and willing to work 24/7 to make this business a success!

We will also have very low overhead costs. We will store bicycles in an old garage (previously converted from an outhouse) on our family property. Bob will use the family station wagon, only paying for gas, to service the business.

Bob also has a good neighbor and friend, Harold Perethian, who runs a large bicycle wholesale business, who lends additional advice and provides wholesale prices for accessories and parts.

Financial Needs

The business will require a total of $10,000 in financing. The founder, Bob Adams, is contributing his personal savings of $2,500 and he is seeking an additional investment of $7,500. Of the total $10,000 in financing, approximately 75 percent will be invested in building a rental fleet of high-quality, carefully selected and negotiated used bicycles.

We expect the business to be highly profitable and for investors to potentially earn back their investment very quickly.

Vision Statement

Over the next few summers, we expect Bob’s Rent-A-Bike to become one of the leading players in the highly profitable and growing market for bicycle rentals on Cape Cod. By reinvesting part of our profits from our initial summers, we plan to expand our fleet and increase our advertising, eventually expanding our promotional activity throughout the entire area.


The Overall Market

The overall sale of bicycles and related items in the U.S. in 2015 was estimated to be $6 billion, according the National Bicycle Dealers Association. However, with the average bicycle dealer deriving just 0.8 percent of their revenue from rentals, the market for bicycle rentals would be about $48 million.

Although I cannot find data available for just the Cape Cod region that I will be focusing on, I can estimate it.

I start with my estimated number of bicycles available for rental of about 1,300.

The majority of rentals are single-day rentals. For simplicity, I will assume all rentals are single-day rentals.

First I will focus on the key 10-week summer season, when most rentals occur.

I estimate from anecdotal information and limited personal observation that, including off-weather days, rental bicycles average a 40 percent utilization rate during the summer season, or in other words, are rented for an average of 28 days.

Therefore, the total rental days during the summer season are 28 days per bicycle x 1,300 rental bicycles = 36,400 rental days.

Then I adjust for off-season rentals. I estimate that 85 percent of the rentals occur during the summer season, so the total rental days including the off-season would be 36,400/0.85 = 42,800.

Then I estimate the average daily rate to be $25. Multiplied by 42,800 rental days, I therefore estimate the total current market for bicycle rentals on Cape Cod to be $25 x 42,800 = $1,070,000.

Also, I believe the total possible market is larger, particularly because many rentals are an impulse decision. So every time a new rental stand is set up, I believe the market incrementally expands. Furthermore, with my introduction of bicycle rentals delivered to motels, campsites, and summer residences, the market may expand further.

Changes in the Market

I believe the market for bicycle rentals on Cape Cod is continuing to grow and is fueled by a number of favorable factors.

The rail trails, old railroad lines converted into bicycle trails, are becoming increasingly well known and popular and especially important to the segment of the population that will only take on the expense of a rental bicycle if they can ride it on a dedicated bicycle trail.

People are generally pursuing more healthy lifestyles, especially on vacations, and are increasingly more likely to want to bicycle on vacation.

Many people are becoming increasingly discerning about the quality and type of bicycle that they wish to rent.

Market Segments

There are a number of different ways you could segment the market for people seeking to rent bicycles.

By Quality and Price

First you could segment it by quality and price. At the highest end you have a relatively small niche, which I will call “enthusiasts.” I estimate this segment to be less than 15 percent of potential Cape Cod renters; they are seeking to rent a high-end premium bicycle designed for a bicycle enthusiast, not a casual rider, and are willing to pay a significant premium if necessary to do so. The rental market for this rider is particularly small because this kind of rider is most likely to bring his or her own bicycle on vacation on a rack on the back of the car.

Next you have what I will call “the big middle.” I estimate this segment to be 60 percent of the market. The most common bicycle renter is typically above average income, is not too price conscious if he or she considers the price to be more or less reasonable, and expects a good-quality bicycle but not the high-end bicycle that the enthusiast would.

Finally, you have what I call the “price shoppers.” These are usually families or at least couples looking to rent bicycles for more than one person and are willing to spend at least some effort shopping around to save a little money. I estimate this segment to be roughly 25 percent of the market.

By Rental Time

I estimate the following average rental durations on Cape Cod:

By Mobile Delivery

Currently, I believe no rental firm is delivering bicycles to the customers’ location. I believe there is absolutely a demand for this because people who don’t bring their bicycle on vacation also do not bring their bicycle rack and cannot easily transport bicycles in their car, and people generally don’t even consider renting a bicycle rack.

Related: Complete Business Plan Outline

Target Market and Customers

Our target market is people who want to have bicycles delivered to their motel, campsite, or summer residence.

Because there will be some expense in making this delivery, we will primarily focus on customers interested in renting bicycles for more than one day. Even though in my analysis of the market I estimated that only about 20 percent of rentals are for more than one day, the revenue from such rentals is significantly higher. In fact, with the price for two days usually being exactly double one day, and a week being substantially higher than two days, for example, the market for rentals of more than one day may be over 40 percent of the market in dollar terms.

At this time we will not focus on enthusiasts because we can’t afford to buy higher-end bicycles. We will, however, try to capture some of the price-shopping market, especially because people who rent bicycles for longer periods of time may tend to be more price conscious.

Customer Characteristics

With our customers looking to have bicycle rentals delivered to them, and generally renting for periods longer than a day, these people will be quite a bit different than the person who might rent a bicycle for an hour from a roadside stand.

People renting bicycles for an hour from a roadside stand are generally young—often in their twenties—and frequently single but usually in the company of one or more friends.

People renting bicycles delivered to their motel, campsite, or summer residence and renting for multiple days tend to be a couple, if not a family group.

Customer Needs

Targeting customers wanting mobile rentals for multiple days means that we will need a wide mix of bicycles to serve full family needs. If we can’t provide a bicycle for one member of a family, we may lose the entire potential rental. So we need bicycles of all sizes and we need plenty of baby seats!

The mobile rental customer is not as much of an impulse customer as someone renting from a roadside stand is. So having the shiniest and newest bicycles is not really going to help us get rentals. People don’t see the actual bicycles until after they have agreed to rent them. But the bicycles need to work and work well. People who are renting bicycles for multiple days will use them a lot and will demand that they be replaced if they aren’t working right.


Industry Overview

The bicycle rental industry on is dominated by U Pedal It, Inc. Although they have a storefront near the harbor in Hyannis, most of their rentals are from dozens of agent-operated locations all over Cape Cod.

Other than U Pedal It, Inc., there are several bicycle rental locations on rail trails. And there are a handful of bicycle retail shops on Cape Cod that also rent bicycles.

Nature of Competition

The nature of competition is focused on location and displaying bicycles, to apparently appeal to impulse renters—those who did not necessarily plan on renting a bicycle as part of their vacation, but take a look at the shiny outdoor bicycles lined up at rental locations and say, “Wouldn’t that be fun!”

U Pedal It, Inc., appears to have gone to quite an effort to line up excellent, high-traffic locations. In addition, the several rental firms that are located on bicycle trails are basically betting their business on their proximity to a great bike riding location.

There does not appear to be much price competition. Everyone offers about the same price for a standard bicycle. I don’t see price mentioned on signage at rental locations or in advertising.

Changes in the Industry

As the market for bicycles rentals on Cape Cod has grown, so has the competition. The popularity of the rail trails has led to more rental locations near the rail trails. And the increased emergence of bicycle enthusiasts looking for high-end rentals has further splintered the market and created a rental niche for high-end bike dealers.

Primary Competitors

Our primary competitor is U Pedal It, Inc. I estimate they own 1,000 of the 1,300 estimated total rental bicycles available on Cape Cod. They have at least double if not triple the combined locations of the rest of the industry put together.

Their strategy is to dominate Cape Cod by making agreements with agents, such as gas stations, motels, etc., to rent their bicycles in exchange for a percentage of the revenue. They have very carefully selected their rental agents and will negotiate the percentage of revenue, particularly if the location is highly successful.

They rent high-quality Raleigh bicycles. They completely renew their fleet every two years or so.

They are also the leading advertiser for bicycle rentals on Cape Cod.

Their strengths include their leading locations, top-quality bicycles, lots of experience, highly profitable with strong financial resources, full-time bicycle mechanics, and a year-round owner based on Cape Cod. They also have only one type of bicycle, the very recognizable Raleigh brand, which looks great and holds up well during rentals, and because they use a single brand, their bicycles are easier to maintain.

A possible weakness is that U Pedal It, Inc., is successful and so dominant that they will likely not feel the need to respond to a small new competitor, either by trying to match new services or to match lower prices.

Competitive Products/Service

Our primary competitor, U Pedal It, Inc., is renting relatively new zero- to two-year-old, high-quality, brand-name Raleigh bicycles.

While U Pedal It, Inc., does a fair amount of advertising, its most important promotional strategy is the shiny displays of new rental bicycles in front of the busy commercial properties of its many rental agents. These displays appeal not only to impulse renters but also to more contemplative renters, who are constantly reminded about the availability of the U Pedal It, Inc., rental locations.


The clearest need I see in the market is for the delivery of bicycle rentals directly to motels, campsites, and summer residences. Although costs will not make this practical for very short (i.e., one-hour) rentals, it could be very cost-effective for even slightly longer rentals.

Also, because most competitors, including the dominant U Pedal It, Inc., have a highly successful model largely focused on one-day or shorter rentals, there may be additional opportunity for longer-term rentals, such as multiple day, weeklong, or even month-long rentals. Because such longer-term rentals can become rather expensive, potential renters are more likely to shop around for a competitive price. And U Pedal It, Inc., having a highly successful business model, would probably not feel a need to respond to a tiny, new competitor competing for just a small portion of the overall market.

Threats and Risks

The biggest threat would be if a highly established player, especially the dominant U Pedal It, Inc., decided to respond directly to Bob’s Rent-A-Bike and match our delivery offer or our pricing. However, as I have outlined previously, I think this is highly unlikely because their model is highly successful and we are just gearing up for a sliver of the market.

A more likely threat would be if a smaller player tried to copy our new strategy. This is possible, but I think it is unlikely, especially during the first season. Also, for an existing player with an existing location, it is a lot more work to deliver rental bicycles. Not everyone wants to work as hard as Bob Adams.

Key Competitive Capabilities

Being the “new kid on the block,” I can enter the industry with a whole fresh approach and a whole new business model, serving the unmet needs of some customers and better serving the needs of others.

Unlike my competitors, I don’t have an established way of doing business. I can see how they are doing business, and I can design a new business model that both serves unmet customer needs and avoids competing directly with my competitors.

I don’t have a lot of money and I don’t plan on raising very much. But I’m resourceful. I know how to get a great value buying used bicycles. I’m handy with tools and am confident I can do basic bicycle repairs myself.

My mother is going to allow me to use the family station wagon for this business, as long as I pay for gas and can work around her schedule. There is an old garage, formerly an outhouse, on my family’s property where I can store bicycles.

So even though I’m probably the smallest competitor, my cost structure has got to be the lowest.

I’m willing to work as many hours as it takes this summer, day or night, weekday or weekend, to make this business succeed!

Key Competitive Weaknesses

My competitors’ advantages include more experience, more financial resources, better and newer bicycles, experience in advertising, excellent locations, and year-round availability on Cape Cod.

Competitive Strategy

My strategy is to deliver rental bicycles to my customers’ doorsteps, to their motel, campsite, or summer residence.

I am going to target customers who are interested in renting bicycles for two days or longer.

I believe much of the longer-term, deliverable bicycle rental market will be families, so I will make an effort to build a rental fleet with bicycles for all ages and also have plenty of baby seats.

I am going to be flexible in pricing for longer periods of time, such as a week or a month, when the rental fee might come close to being as high as my entire purchase price for my average used bicycle.

Because I am not renting bicycles on impulse from highly visible bicycle stands and customers will not see my bicycles until after they have requested a rental delivery, and because I have very limited resources, I will build a rental fleet of used bicycles instead of new ones. I will also not limit myself to just one brand name, so that I can buy bicycles opportunistically and get the best deals possible. Given that large quantities of my bikes will not be displayed to the public at once, it won’t matter that they don’t match and that I have all kinds of different brands and colors.

Finally, especially because I have limited finances, I am going to keep my operating costs rock bottom by using my mother’s station wagon and by using the family’s old garage for bicycle storage. I am going to design my own advertising.

Bumper Sticker Strategy

My bumper sticker strategy is “mobile bike rentals.”


Product/Service Description

Our service is renting bicycles. We will rent by the day, by the week, or by the month. We will not rent for less than a full day, unlike most competitors, who rent by the hour as well.

We will rent two types of bikes only, adult bikes and children’s bikes. Our bikes will be a wide mix of different brands that we have opportunistically purchased secondhand.

All adult bikes will be ten speed or more. All adult bikes will have conventional, non-racing handlebars.

Children’s bikes will be one speed. Some will have high-rise handlebars.

All bicycles will have full and working safety equipment as required by law, including reflectors and an operable bell or horn. Brakes will be checked prior to each rental. All bikes will also be equipped with a basket.

In addition, baby seats will be provided by advance request for no additional charge. These seats can be relatively easily installed and removed in order to keep the rental fleet flexible.

Positioning of Products/Services

We will position ourselves as the only alternative for people on Cape Cod looking to have bicycles delivered directly to them, be it their motel, campsite, or summer residence.

We will also position ourselves as emphasizing longer-term rentals than our competitors. Unlike our competitors, we will not rent bicycles for less than one day. We will offer lower rates on extended rentals such as for a week or longer.

We will also position ourselves as family friendly, with a good variety of bicycles for not just adults, but kids of all ages. We will rent kids’ bikes for half the price of adult bikes. We will have a good supply of baby seats that we will provide for no additional charge.

Competitive Evaluation of Products/Services

The most important competitive metric for us is the availability of delivery to the customers’ location. This is how we will stack up:

Delivery available?

U Pedal It, Inc.: No

Bike trail–located rental competitors: No

Bicycle shop rental competitors: No

Bob’s Rent-A-Bike: Yes

Another important competitive metric for us is the competitive pricing of longer-term rentals:

Daily rental rates (comparable adult bicycles)

U Pedal It, Inc.: $25

Bike trail–located rental competitors: $25

Bicycle shop rental competitors: $25

Bob’s Rent-A-Bike: $25

Weekly rental rates

U Pedal It, Inc.: $90

Bike trail–located rental competitors: $85

Bicycle shop rental competitors: $90

Bob’s Rent-A-Bike: $77

This is how the quality of our bikes compares:

Bike quality

U Pedal It, Inc.: New, high quality, one brand (Raleigh)

Bike trail–located rental competitors: Relatively new, good quality, one or two brands

Bicycle shop rental competitors: New, high quality, mixed brands

Bob’s Rent-A-Bike: Good working quality, but slightly used 

Future Products/Services

Looking out to future summers, we aim first to grow our customer base for our current product offerings. At some point in future summers, we may begin to buy new, high-quality bicycles and to standardize our fleet. We may also test demand for higher-end bicycles for the enthusiast.


Marketing Strategy

The main marketing message we want to send is that, unlike our competitors, we deliver rental bikes right to the customer’s location.

There are other ways that differentiate us from our competition, such as lower rates for longer-term rentals and a little more effort to be family friendly. But what makes us stand out much more clearly from our competitors is our delivery of bicycles, so that’s what we are going to overwhelmingly emphasize in our marketing.

We don’t have time or money to invest in building an image. Our marketing is designed to “ring the register” with bicycle rentals today, not for building an image for tomorrow.

Being an all-new business and having only a 10-week summer season, we are going to immediately try and test a whole bunch of marketing alternatives. We just don’t have the time to test one after the next sequentially. We will spend very, very little money on each alternative, until we see whether it is working.

While we are willing to deliver bicycles anywhere on Cape Cod, we will give an extra emphasis to marketing to motels and campsites within a half hour drive of our bicycle storage facility. Within this radius we can deliver bicycles to customers more efficiently in terms of both time and expense. At motels and campsites I believe we will find a concentrated audience with a higher propensity to rent bicycles than the general summer population.

Unique Selling Proposition

Our unique selling proposition is: “Bike rentals, delivered free!”

The fine print indicates a minimum of two bikes being rented for two days each to qualify for free delivery. This means that we are grossing at least $100 on each free delivery, or $25 per bicycle per day.

We are the only bicycle service on Cape Cod offering delivery of bicycles. Offering delivery for free makes it that much more compelling.

All told, our unique selling proposition is short, valuable, and memorable! Great for use in marketing campaigns!

Sales Tactics

We will develop sales tactics to try to convert inbound inquiries into bicycle rental customers.

Inbound Telemarketing

Some of our inbound inquiries will be phone calls. We will use a six-part approach to closing phone inquiries.

Inbound Email Inquiries

Website Inquiries


Selecting an advertising medium is trickier for us than for many new businesses for a several reasons. First, most of our competitors primarily attract customers on the basis of their highly visible commercial locations, including large displays of rental bicycles and signage. Our bicycles are stored in a garage in a residential-zoned district, so we really need to make our advertising work.

Second, we only have a 10-week summer season. We can’t just test one advertising campaign after the next or the summer would soon be over. We need to test several at once.

Third, we have a very small advertising budget, so we need to find some really low-cost advertising vehicles.

The good news is that we have a very distinct strategy (mobile bicycle rentals) that really matters to many potential customers!

The even better news is that we have been able to translate our powerful strategy into a compelling unique selling proposition: “Bike rentals, delivered free.”

So between our strong strategy and our memorable USP, we have a really good chance of getting a decent response, even from low-budget advertising.

Our website is a core component of our advertising. We will prominently display the website address or have a link to it in all of our advertising. We will design the website primarily to “sell” a prospective customer on the idea of renting bicycles from us. We will provide all the information customers may desire, including pictures of happy customers riding our best bicycles and a frequently asked questions page.

We will also provide rates. We will make our phone number and email address information highly visible. The website will be just a few pages long, but it will be attractively designed and simple to navigate. We will also design the website to optimize search engine results placement.

Guerilla Advertising

We will go out to every campsite and motel and coffee shop within a 30-minute drive of our house and plaster every bulletin board with an advertising flyer. We will leave small handout flyers at motels. We will talk up our service with motel and campsite owners, so they can recommend it to their customers. Bob will ride his bicycle to visit them, to increase impact and recall.

Tourist Guide Advertising

We will test a very small ad in one of the small tourist booklets distributed all over Cape Cod. The advertising is one of the more expensive things we will do, but we will keep the first ad very, very small until we see that it is working.

Local Newspaper Advertising

We will test a small ad in the local weekly newspaper. We will aim this more for longer-term renters.

Search Engine Advertising

We will run several very short tests for keyword advertising. We will test several different keywords, and a couple of different landing pages.


Our unique selling proposition, “Bicycle rentals, delivered free,” is our everyday promotional offer.

Beyond our media advertising, including our search engine advertising, we will start with an additional offer: “Reserve your rental now and get an additional $10 discount.”

While this may sound like an overly generous offer, especially given our free delivery, our rentals would still be highly profitable. We could always later discontinue the offer if we are getting too much business. On the other hand, if a particular advertising media is not responding in our first test with this extra $10 discount, then we can feel more confident in immediately dropping it.

Additionally, if rentals are running below plan, we may discount prices further during the process of phone inquiries, especially for longer-term rentals.

Our primary publicity vehicle will be social media. We will aggressively promote our visibility on social media; encourage friends, customers, potential customers, and key local businesspeople to follow us; and update our information regularly.

We will also send a start-of-season press release to all major websites and print vehicles everywhere on Cape Cod.

Bob will offer to do talk show interviews on local Cape Cod radio and cable TV stations on the joys of bicycling on Cape Cod, liberally referencing Bob’s Rent-A-Bike.

Instead of passing out a traditional business card that largely features his name, Bob will pass out to every single person he sees all summer long a Bob’s Rent-A-Bike business card–shaped advertising piece that offers a special “Friends and family $10 discount on your next bicycle rental.” 

Trade Shows

Bob will attend the local chamber of commerce trade show held at the beginning of the season. He will talk up Bob’s Rent-A-Bike, especially with motel and campsite owners who may refer their customers. He will also give them promotional flyers.

Key Personnel

The key person is founder Bob Adams. Bob is nineteen years old and is completing his freshman year at Carleton College. He is a graduate of Phillips Exeter Academy. Bob’s previous summer jobs include working as a rodman for Savery Engineering, as a dishwasher for Howard Johnson restaurants, and as a busboy for Stage Coach Grill. Bob has ridden bicycles for years, is handy with tools, and is ready to work 24/7 to make Bob’s Rent-A-Bike a success.

Organizational Structure

Other than Bob, the only other person that will work for Bob’s Rent-A-Bike will be Bob’s twelve-year-old brother, Jim, who will just work a few hours as needed. Jim will answer the phone if Bob is not available and help clean and maintain the bicycles. Jim is willing to work for a very, very modest wage.

Human Resources Plan

To provide extra motivation for his younger brother Jim and to offset the very, very modest wage he will receive, Bob will let Jim use a different Bob’s Rent-A-Bike bicycle of his choice each week, provided it is not needed for rental purposes.

Service Delivery

Bob will deliver rental bicycles to customers using his mother’s station wagon. Bob has agreed to reimburse her for gas and try not to beat up the car too much. He also has a large bicycle rack to mount behind the car, and has been practicing carrying bicycles on the roof as well. Bob feels he can carry as many as 12 adult bicycles in one trip.

Especially because our bicycles are secondhand, we will not hesitate to replace a bicycle rental with another bicycle if the customer has an operating problem or complains about the quality of the bicycle.

We aim to have a rental fleet of 50 bicycles.

Customer Service/Support

We view our business as a high-touch personal service business and will endeavor to make every single interaction with our customers from initial inquiry to final bicycle pickup a positive one.

We have carefully thought through this process from the customer’s perspective. Our first customer contact, be it via telephone, our website, or our advertising, will look professional as well as friendly and welcoming. We will continue interacting with our customers in a “high touch” warm and friendly way throughout the entire process.

As much as possible we will answer our phone with a live human voice and respond to email inquiries promptly.

Because we expect our customers to have a very positive experience with us, we will also ask our customers for referrals and ask them to follow us on social media.

In keeping with our low overhead, we will operate out of an old garage on our family property that was converted from an outhouse. It is a small, single-car garage and not all bicycles will fit parked in the garage at once. However, we intend to purchase bicycle hooks that we can screw into the old beams in the ceiling of the garage and hang bicycles from, saving huge amounts of space and allowing us to get all 50 bikes into the garage.

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The Rideshare Guy Blog and Podcast

How To Start A Scooter Rental Business [Electric Scooters]

E-scooters seemed to pop up out of nowhere and have been spreading around the world like wildfire – but what does it take to build a scooter company? Today we have a guest post from Asher Meyers on what it takes to start an electric scooter rental business  that’s profitable and successful!

How to Start an Electric Scooter Rental Business in 3 Easy Steps

Article sponsors:

Joyride, a company that helps you launch your scooter or bikeshare. Learn more about Joyride here , and make sure to contact Harry Campbell if you’re interested in an introduction.

& Ed Walker,  insurance expert. If you need insurance for your scooter startup, contact Harry Campbell . Harry will introduce you to Ed, who helps startup transportation and micromobility companies create custom insurance policies.

How to Start an Electric Scooter Rental Business

The scooter startups Lime and Bird have sunk hundreds of millions on building and deploying scooter fleets all over the world. Uber, Lyft, Skip and Spin have joined their ranks. How could the average Joe possibly run with the bulls, without tens of millions in funding?

These firms, particularly Bird and Lime, have had to spend on big fixed, upfront costs — things like:

All of these have classic ‘economies of scale’ — build it for one scooter or 10,000, and it costs a lot either way. They’re barriers to entry — hurdles that make it hard for new firms to form and compete.

Tooling up a new car factory , for instance, costs billions of dollars. Unsurprisingly, there have been very few new car companies for decades. Bullish investors like to cite these barriers as reason for why their companies will make money in the future.

With all these obstacles, how can any whippersnapper scooter fleet even begin to compete to start an electric scooter business?

The good news: increasingly, smaller operators can overcome these barriers, either by partnering with a company like Joyride , or by outsourcing these roles to independent companies, in return for a modest unit cost instead of big upfront fixed costs.

Since none of these suppliers have a monopoly, and since operators can always do the work in-house or with a contractor later, competition should keep the cost of outsourcing reasonable.

As for government lobbying, well… you can let the big boys be the trailblazers there 🔥💵🔥. As Silicon Valley villain/wunderkind Peter Thiel might put it, the “ Last Mover Advantage ” is within reach.

Vehicle Hardware & Fleet Software for an Electric Scooter Company

There’s a truism in business – ‘don’t mine gold when you can sell the pickaxes’ – because there’s less competition and more assurance of getting paid, when you’re the supplier, not the miner.

In the scooter world, Ninebot (aka Segway) is the pickaxe peddler par excellence. “Almost Every Electric Scooter in the World Comes From This Chinese Company” a  recent Bloomberg headline reads . Ninebot has been developing scooters the longest, and remains committed to being neutral and selling scooters to all comers, more or less. Important for people thinking of starting an electric scooter rental business.

Ninebot has also (finally) announced a more ruggedized model  designed for sharing, that will first be fielded with Lyft. Typically, manufacturers will offer temporary exclusivity in return for a higher price or a high volume order, and I imagine that’s the deal Lyft secured.

Other manufacturers are stepping up — including Electisan, Onan and Minimotors, to name a few. Electisan makes the   Bird Zero scooter , according to   The Rideshare Guy , and Minimotors has provided vehicles for Skip.

Another promising provider is Superpedestrian, whose upcoming scooter has bigger wheels, longer range (so less charging), and more ruggedized construction. The manufacturing cost is   reportedly $500 . Inboard also promises a fleet-ready scooter, featuring a swappable battery bigger wheels and a wider deck, sold at retail for $1,299 and to fleets, but only has a 12 mile range according to Verge .

Boosted Boards recently received $60m to   bring light electric vehicles to market , and presumably, that will include shared scooters. As someone who’s   seen  and   spoken with  with their current CEO Jeff Russakow and former CEO Sanjay Dastoor, respectively, it’s apparent that Boosted puts a high priority on quality, safe vehicles.

Either way, the options for high quality, commercial grade fleet scooters are set to multiply.

image of Superpedestrian Scooter

Superpedestrian Scooter

Instead of retrofitting scooters fresh off a cargo ship from China, the firmware and communications hardware for shared scooters can be installed more efficiently at the point of manufacture.

Moreover, both   Ninebot  and Superpedestrian will offer fleet logistics software with their scooter hardware. In addition to vehicle makers, there are firms that specialize in fleet management, such as   Joyride ,   Vulog  and   Wunder Mobility , for as little as $5 a month per vehicle, or less.

As cities increasingly   call for operators to disclose  historical and real time data on rides, fleet software providers can make compliance easier, and provide general advice on setting up your scooter fleet.

The App for an Electric Scooter Rental Company

To date, all of the scooter fleets have had their own app. On first glance, an app seems inseparable from running a scooter rental business.

But this is starting to change. You can book JUMP and soon Lime rides through the Uber app — though admittedly, Uber owns JUMP, and also has a $335m investment stake in Lime.

Access through truly independent apps already exists, just not for scooters (yet).

The Whim app, live in Helsinki, Antwerp and Birmingham, UK, lets users buy access to cabs, carshares, public transit and bikeshare, without requiring other apps. Moovel offers similar functionality in the German cities Stuttgart and Hamburg, among others.

Transit is an app that lets users buy access to a similar suite of services in cities across North America, right as you’re planning your trip — plus you can compare your preferred mode with other options. (I work for Transit Inc., the app’s maker.)

image of Unlocking a Divvy shared bike and trip planning in the Transit app (Chicago)

Unlocking a Divvy shared bike and trip planning in the Transit app (Chicago)

In some cases, like Toronto’s bikeshare, the fleet operator has no app of their own, and relies on outside apps (Transit and Cyclefinder) for letting customers buy ride passes through an app. In-person kiosks are also available next to designated bike parking areas.

Cities like Washington, DC increasingly require operators to publish vehicle locations in real-time to make it easier for users to find the closest scooter. Third party apps like Transit use that data to show their users nearby scooters; to unlock the scooter, the user is prompted to download the relevant app, where the ride can be started.

With the integration of your fleet in an app like Whim or Transit, users can seamlessly book your scooters, with one app instead of several.

Third party integrations offer a few benefits:

Alternatively, Joyride offers a white labeled app and payment processing as part of its product. Joyride aims to offer all the app features you’d find among say, Lime or Bird, from rider statistics and QR code unlocking to vehicle tracking and and support alerts, for $5 or less, per month per vehicle.

business plan location scooter

Invers  offers a similar software suite, complete with an operator dashboard and a white-labeled app for riders. Its service is used by dozens of firms, including the “moped” sharing service Emmy with over 1,000 vehicles across Berlin, Hamburg, Dusseldorf and Stuttgart.

While Joyride, and Invers are new to kick scooter sharing, the software essentials of operating a dockless car, bike, moped or scooter share are much the same; the scooter sharing operator, however, will have to pay closer attention to maintaining vehicles left out on the road, compared to the operators of cars and mopeds.

Operations: Rebalancing, Recharging, Repairs

Unlike writing software, your day to day fleet operations don’t have the same high upfront costs, and they increase as you get more scooters. Outsourcing your operations won’t have the same pressing advantage.

Even so, a third party ops crew may have an efficiency that single small firms don’t. Consider garbage collection — the trash company with the lowest cost to service you will be the one that already serves your next door neighbor.

In the future, third party logistics could manage more scooters in a given area than any single operator. That means less time traveling between scooters, and consolidating recharging and repair facilities under one roof. They may also have warehouse space available on short notice, making it easier to enter new markets on a trial or seasonal basis.   Third party logistics  (3PL) are already widely used in the business world at large.   Sweep Crew  is one such player focusing on end to end logistics solutions, and currently works with scooter share Spin among others.

New York’s bikeshare Citi Bike has pioneered ride credits and prizes for users who rebalance bikes; we may see similar rider incentives from operators, offering free rides in return for say, fixing someone else’s bad parking job. Conversely, Bird famously offers ‘bounties’ for gathering and recharging scooters.

Between third party logistics, rider incentives, and ‘gig workers’, operators have a number of options besides hiring their own staff, and each option must be weighed if you’re thinking of starting an electric scooter rental business.

The Correction is Coming

There is no billion dollar opportunity for newcomers to the electric scooter rental company industry. Recent press reports suggest Lime’s and Bird’s valuations are flat since last year, despite their massive growth in ride volume. Many suspect that operators are having trouble making money on a per ride basis, let alone with the cost of overhead. Average rides per user has been under 2 per month (see Christchurch, Charlotte and Waterloo, Ontario, for  example). Lime recently reported 34 million rides among 10 million users – a lifetime average of 3.4 rides per user after less than a year or so of offering scooters.

Meanwhile, Uber and Lyft have lost billions year after year in ridesharing, and there’s little evidence yet that their large existing user base will advantage them in the scooter saga. In places like Los Angeles and San Diego, Lyft and Uber have   undercut existing players on price  in a bid for relevance.

Here’s a paragraph by Yves Smith  worth considering:

“Uber also has much higher overhead costs: vastly better-paid employees, in prime office space, engaged in activities that a local cab company either rarely or never has to handle, like driver recruitment (Uber has recruitment centers), public relations and advertising, litigation, airfare, and other costs of running a global operation.”

That’s true of Bird, Lime, and Lyft as well, who are based in those frugal bastions Venice Beach and San Francisco. They have a headcount far beyond what you’d need for the nuts and bolts of a scooter fleet.

These companies have spent money not only on infrastructure like their app, but also appear to have subsidized the rides themselves, the thing meant to turn a profit . The current scooters lack durability, as well as protection from vandalism and the elements. In a bid for financial viability, the operator Skip has raised per minute prices 67%, from $0.15 a minute to $0.25.

Bird and Lime in particular have deployed in dozens of cities without apparent  profits per ride, while Lyft and Uber scooters are in fewer than 15 cities. Whether they are being more judicious about deployments, or simply lack the supply to keep up with Bird and Lime, is unclear.

Why would Bird and Lime burn money on subsidizing rides , instead of say, biding their time to design more rugged, cost-effective vehicles? It’s the venture capital (VC) pitch — that once someone downloads your app, signs up, and takes their first ride, they’re yours!

But there’s little evidence this is actually true — that customers will be loyal enough to pay more, to cover your initial ride subsidies. Especially once seamless integrations proliferate, as we saw with Whim, Moovel and Transit, and with the third-party ecosystems generally. In ridehailing, the share of users routinely riding with both Lyft and Uber  is steadily increasing.

I may not be the only skeptic — investor enthusiasm in scooters is abating , and Bird’s valuation did not increase markedly in funding rounds 6+ months apart. As the VC cash river dries up, operators will have to charge more to stay afloat, wring out equipment failures, and/or lay off staff. Admittedly, this correction has been building for the better part of a decade, beginning with Uber and Lyft.

Uber’s presence can seem omnipresent, ubiquitous… inevitable. In reality, Uber has retreated in the face of local competition in markets around the world, from Russia to China to Southeast Asia. Size and spread is no guarantee of survival.

What’s Your Edge?

If everything can be outsourced, what’s left?

A new electric rental scooter company can avoid the bloodletting by deliberately remaining a bare-bones operation, and outsourcing when it makes sense. Let the bigger players blaze a trail, while you avoid their costly mistakes. Or be a vulture, and acquire rights to the software of a failed operator; getting to market first means solving lots of costly problems yourself — like vandalism, legal penalties, and vehicle design failures. Bigger operators may not even want to go after cities  that don’t warrant 500+ scooters.

As a smaller operator, you may need a niche that gives you space to turn a modest profit. Maybe you use the scooters as bait for an even bigger product, much like trains were used to increase the value of land nearby. (Notably, Lime has received investment from real estate groups .)

Here are some possible niches for a smaller player:

Here’s what you won’t be doing, if you want to stay solvent:

Bird evidently has already caught on to the appeal of an easy-bake electric scooter rental business — its   platform  will provide the hardware and software, in return for 20% of ride revenue; you cover the scooter hardware and city permit costs, and you get to brand the scooters as you like. This squeezes the competition with more rival scooters, without all the capital and compliance costs for each whip. A one-stop shop solution like Bird’s could be a good match for people who just want to provide a service or advertise their brand, rather than make money off of it directly.

In early 2019, the third-party ecosystem will still be a patchy affair; the big players will still be content with operating losses — Uber has committed to   spending $1b in 2019 on ebikes and scooters  in 2019. As the ecosystem matures and the Lyft/Uber IPOs occur, 2020 and onwards is where things get interesting (and maybe even viable)…

Asher Meyers is an admirer of car-free cities and efficient transport, and currently works as an analyst at Transit in Montréal; he formerly lived in Los Angeles as a cost analyst in the aerospace industry. He can be found on   Twitter  and   Medium .

Harry Campbell

Harry Campbell

I'm Harry, the owner and founder of The Rideshare Guy Blog and Podcast. I used to be a full-time engineer but now I'm a rideshare blogger! I write about my experience driving for Uber, Lyft, and other services and my goal is to help drivers earn more money by working smarter, not harder.

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Canada Small Business Startups and Funding

Starting a small business as a Scooter Rental Service

If you’re ready to start your small business as a Scooter Rental Service, the first thing you need to do is get started with a Business Plan for Scooter Rental Service. To achieve success, you must plan for it.

As a business owner you will need to understand all aspects of your business in order to keep it running like a well-oiled machine. Your business plan will organize every element of your business strategy and provide you a clear map for you to follow for the lifespan of your business.

This free business plan builder template will help you develop your own Business Plan for Scooter Rental Service. The business plan template is an interactive tool that will quickly and easily create a custom business plan just by having you answer questions about your business. The result is a clean, professional plan that is both informative and convincing.

If you want your Business Plan for Scooter Rental Service to be even better after you’ve completed the free tool, you can always get in touch with a business plan or a funding advisor to get a bit more help and guidance.

This is the perfect way to get a Scooter Rental Service Business Plan created for free!

Other entrepreneurs who have successfully used the free business plan template tool have been able to create a Ethiopian Restaurant, Window Cleaning Service, Bakery, Sports Massage Therapist, Farm Equipment Supplier, and for many more different business types.

Using the free business plan template tool to create a business plan for an a Scooter Rental Service

The free business plan template builder is divided into a few easy to follow steps.

Step 1. Enter your business information

As you develop your business plan for a Scooter Rental Service with the free business plan template, it’s important to answer the questions about your business such as; what your business is, what your products/services are, who your customers are and what your goals are.

A clear explanation of the products/services the Scooter Rental Service business offers and what you intend on charging to make revenue is very important to ensuring a properly developed business plan. The free business plan builder tool helps you do exactly that by guiding you step by step.

Step 2. Entering your expected revenues

Sales and revenue figures are a critical step to any business plan. So, what do you think your business will make from each of its products/services? Simply list your products/services, enter the appropriate financial figures (costs and expenses).

If you don’t have the figures, in many cases it is recommend doing a bit more research on other Scooter Rental Service business locally and within your own province to get an idea of potential revenue. You can do your best to estimate the figures and growth potential.

Step 3. Discuss your market

As a Scooter Rental Service business, a clear explanation of the market you are in, the industry and the competition will help you take your business to the next level.

Explain your location of business, share specifics about your customers, showcase your competition and explain the advantages you have over your competition.

A properly developed business plan will go in detail and explain each of the above.

Step 4. Discuss the future plan

Getting your Scooter Rental Service business off the ground is important and in order to ensure a solid business plan, it’s important to discuss how you intend on achieving success with your business. This means explaining your marketing plan, your sales strategy and clearly outlining a growth plan for the next few years.

Be sure to break this down step by step to show how you intend on making sure your Scooter Rental Service business can grow each year.

Keep in mind that often business plans are focused around key people. Be sure to discuss yourself, your role and any other key figures in the business as well.

Step 5. Enter the financials

A critical piece to any business plan is the financials. No matter if you are seeking funding for your business or not, financials are a must. The business plan builder tool makes it easy to develop your financial charts by simply entering your expected revenues per month and year.

If you don’t have the figures as it’s a new business be sure to project the figures based on your expectations.

A clear breakdown of your funding needs is also recommended in case you are seeking funding and this free business plan template will help you with exactly that.

The above 5 steps are recommended steps to follow in order to develop a proper business plan. While there are other key points that are a must, the free business plan template will help you start.

Be sure to request a professional to review your business plan , to answer any questions you may have and to help you with the funding search once you’ve done the initial free template. You can request this directly via CanadaStartups.org and through the Small Business Startup Platform .

If you are considering other options aside from a Scooter Rental Service business, consider some of these popular business’s others have chosen to startup.

It takes 30 seconds to learn more about small business funding and if your small business in Canada may be eligible for government funding.

Fill out the form below for more info or give us a call at  1-800-288-9691

How to Start a Profitable Scooter Rental Business in 11 Steps!

Get worry-free services and support to launch your business starting at $0 plus state fees

A-Z roadmap of steps to start a business, gain independence and enjoy the freedom of being your own boss !

Easily write a business plan, get funded, and know exactly how to reach your goals.

11 Steps To Starting a Successful Scooter Rental Business:

1. put together a plan for your scooter rental business..

Starting a Scooter Rental business requires careful planning and preparation to ensure success. An effective plan will help you anticipate and address potential issues, create a budget, determine marketing strategies, and identify resources that will help you in starting and running your business.The first step to developing a successful plan for your Scooter Rental business is to conduct research. Look into legal requirements, local rules and regulations, taxes, insurance coverage, vehicle maintenance costs, and all other financial aspects of the business. Research the competition to gain insight into pricing strategies, operational models, services offered, customer experience, and customer expectations.Additionally, consider the type of vehicles you’ll offer in your scooter rental business and how they’ll be serviced. What types of scooters will you own? Will you purchase them new or used? How do you plan on servicing them? Where will they be stored? Who will manage reservations and bookings? All of these considerations should be planned for in advance when creating a business plan for your scooter rental business.

What does it cost to start a scooter rental business?

Starting and running your own scooter rental business can be a lucrative venture, but it is important to consider all of the costs associated with kickstarting such an enterprise. While startup costs will vary depending on factors like location and the type of scooters being offered, there are some key costs which must be taken into account:

Are scooter rental businesses profitable?

How to come up with a name for your scooter rental business.

Consider the characteristics of your target customer and create a name that emotionally connects with them. Choose a name that’s easy to pronounce and remember, preferably something fun and catchy. Think of words that evoke feelings of adventure, exploration, or independence and come up with creative combinations. Research other companies in the same space to get ideas and make sure the name you choose isn't already taken. Keep it simple yet memorable so your customers will think of you when they want to go on a scooter ride.

What do you need to do to define your target audience for your scooter rental business?

How does a scooter rental business make money, 2. form the legal business entity..

When deciding on the right type of entity for your scooter rental business , it's important to consider your liability exposure and your goals for the business. If you're just starting out and selling to family and friends, a sole proprietorship may be enough. But if you're looking for more protection or to grow your scooter rental business, a corporate organization or LLC may be a better choice. Be sure to weigh the pros and cons of each type and seek professional advice if necessary.

3. Source Financing Options for Your Scooter Rental Business.

If you're just starting out, you may only need a few hundred dollars to cover initial costs, but it's still worth considering the following financing options:

1. Raising money from friends and family:

2. bootstrapping by tapping into your own savings:, 3. sourcing investment from outside investors:, 4. obtaining a bank loan:, 5. getting funding from a hard money lender:, 4. open a business bank account..

Opening a business bank account for your scooter rental company may seem overwhelming, but it doesn't have to be. Choosing the right type of account depends on your specific needs and the amount of money you'll be depositing.

5. Set up Your Accounting and Taxes System.

There are a few different ways to establish an accounting system for your business, including using online accounting software such as QuickBooks or Xero, or hiring an accountant to handle it for you.

6. Obtain the Necessary Scooter Rental Business Permits and Licenses.

The types of licenses and permits you need may vary depending on the location of your business, the services you offer, and the products you sell. It's important to research the requirements for your specific business and location.

What licenses and permits are needed to run a scooter rental business?

The exact licenses and permits needed to run a scooter rental business vary depending on the location and type of business. Generally, you’ll need a state-level business license, any local permits your city or county may require, an occupational license, and a federal employer identification number. Depending on the size and type of business, you may also need to obtain a commercial rental space, a zoning permit, event permits if applicable, and sign permits. Additionally, some states require insurance for rental scooters.

7. Purchase Equipment, Software, Supplies & Tools Needed.

List of software, tools and supplies needed to start a scooter rental business:, 8. create a brand identity for your scooter rental company..

But if you take the time to plan and focus on what you want your customers to feel, you can create a brand identity that will set your business apart from the rest.

1. Define your scooter rental company's purpose and values.

2. choose a color scheme that reflects your company's personality., 3. develop a unique logo that represents your scooter rental brand., 4. create consistent branding across all channels..

Creating a strong brand identity is essential for any scooter rental business, but it doesn't have to be complicated. By focusing on your company's purpose and values, you can develop a brand that will resonate with your target audience. With a little planning and some creativity, you can create a brand identity that will make your scooter rental company stand out from the rest.

9. Build a Beautiful Website for Your Business.

10. create a company email address & phone number..

Having a professional business phone number and email address is an important aspect of running a successful scooter rental business. Not only does it give your business a more professional appearance, but it also makes it easier to stay in touch with customers and manage business communications.

11. Make a Go-To Market Launch Strategy.

Launching a new business is an exciting time, and marketing is a crucial part of getting your scooter rental business off the ground. Here are some additional tips to improve your marketing strategy:

Resources for Your Scooter Rental Business:

Related business ideas, youtube channel, wreath making, window cleaning, waterproofing, water refilling station.

List of Scooter Share Companies by State (200+ Locations)

Bike sharing is taking the world by storm, but perhaps even more controversial and widespread are the use of dockless scooters. We thought you might want to know exactly where you can expect to find scooter sharing in the US.

Whether it’s your own state you want to learn more about, or a state you’re about to travel to, it can help you plan and budget if you know exactly what transportation options exist.

Our research shows that there are currently:

as of early 2020.

Below you’ll find a continually updating list of scooter share companies across the United States, broken down by state.

Please contact us to make corrections to this list.


No scooter share companies at present.

Is there a new scooter share company in this state? Contact us to let us know, and we’ll add it!


Massachusetts, mississippi, new hampshire, north carolina, north dakota, pennsylvania, rhode island, south carolina, south dakota, washington dc, west virginia, leave a comment cancel reply.

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City of Santa Clara

Top searches:.

Our City » Departments G-Z » Public Works » Engineering » Traffic Engineering

Bicycle and Scooter Share


On December 7, 2021, the City Council approved the City's Shared Mobility Permit Program (Program) which established  Shared Mobility Permit Administrative Regulations  and a permitting process in which privately operated shared mobility companies can obtain an operating permit to provide scooters and bicycles for rent in Santa Clara. These bicycles and scooters can be operated on roadways within Santa Clara subject to City and State regulations.

Through an open permit application process and evaluation, the city has selected two private shared mobility operators, Bird and Veo, to participate in the Program. More information about the operators is included below. 

On August 8, 2022, Bird received their operating permit to deploy 800 e-scooters and 200 e-bikes and on October 27, 2022, Veo received their operating permit to deploy 300 e-scooters throughout the city.

If you are interested in the process of renting a bicycle or scooter, or have a customer service request, please see the information below for each of the providers. 

Operating rules and who to contact with inquiries or concerns

Bicycle and Scooter users must download the operator's app and enter into a rental agreement to rent a device. Available devices will be shown on maps within the app. To end a ride, a user must find an appropriate parking location. 

Before riding a device, educate yourself on the basic operating rules:

If a device is knocked over, parked incorrectly, found in a prohibited area, damaged, inoperable or on private property, the public should call or email the device operator via the 24-hour customer service contact. The operator is responsible for retrieving the devices. 

The Police Department is enforcing the Vehicle Code and City Code violations. Public Safety Dispatchers should  only  be called in the following instances:

For non-emergency situations call 408-615-5580. In an emergency, dial 9-1-1. Please also use the City's MySantaClara app to report issues with shared mobility devices. 


For any questions on the Shared Mobility Permit Administrative Regulations or the program itself, email Ralph Garcia at  [email protected] .

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YP - The Real Yellow Pages SM - helps you find the right local businesses to meet your specific needs. Search results are sorted by a combination of factors to give you a set of choices in response to your search criteria. These factors are similar to those you might use to determine which business to select from a local Yellow Pages directory, including proximity to where you are searching, expertise in the specific services or products you need, and comprehensive business information to help evaluate a business's suitability for you. “Preferred” listings, or those with featured website buttons, indicate YP advertisers who directly provide information about their businesses to help consumers make more informed buying decisions. YP advertisers receive higher placement in the default ordering of search results and may appear in sponsored listings on the top, side, or bottom of the search results page.

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2609 Santa Clara Ave,   Alameda, CA 94501

Likely to sell faster than 98 % nearby.

2:00 PM - 4:30 PM

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  17. List of Scooter Share Companies by State (200+ Locations)

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