Electric scooters are among the top transports today as they provide people with quickly moving the city and eco-friendly nature of these vehicles. Besides, lots of people choose not to buy an e-scooter for themselves but rent it any time they need it. That fact makes the electric scooter business among the most prospective ideas for entrepreneurs to start with.
It looks quite easy to start an electric scooter business and get profit from it. Just get some scooters, install an app to manage them, and that’s bingo! Yet, do you know how much it costs to start an electric scooter business? Let’s talk about it in detail.
- Main Cost Items to Consider When Starting an Electric Scooter Business
The first thing to consider is the number of scooters in your fleet. Let’s calculate costs for an average-size e-scooter rental business with 50 e-scooters in a fleet.
- You need to register your company first to get permits for e-scooter rental. That includes consultations with lawyers, applications to governmental institutions, social insurance authorities’ registration, and other routines each business goes through when it starts.
Total expenses for this step are $100-1,000.
- Buying a fleet you need for the start of the electric scooter business. Besides the cost of scooters that cost item includes custom taxes if you buy scooters from a manufacturer overseas.
Total expenses for this step are $32,500+ depending on the type and model of e-scooters.
- Getting spare parts for scooters. No need to say that intense exploitation leads to the necessity of regular repair of your fleet.
Total expenses for this step are $12,000+.
- Charges and transportation for them. You need to maintain your fleet charged so do not forget about that step too.
Total expenses for this step are $5,000-7,000.
- Electric scooter app development is a cornerstone for your business operation. You need to get an app for your customers to rent a scooter easily. Besides, you need a CRM to manage your business processes.
Total expenses for this step start from $5,000 and depends on the type of software you get (franchise, custom, or on-shelve).
These are cost items you need just from the very start. Besides, you should consider in advance that you may need to pay monthly or once a quarter for the following cost items:
- Maintenance and repair services,
- Warehouse and office rental,
- Taxes,
- Salaries to your employees,
- Insurance fees.
As you can see, the total cost for an electric scooter business starts from $70,000 and depend on lots of criteria. Yet, there are several tips on how to reduce them.
How to Reduce Costs for Electric Scooter Business
There are several ways how to reduce these costs without losing the quality of your e-scooter rental services.
Electric Scooter Franchise: What is It and How Much Does it Cost?
- Get a franchise application instead of developing it from scratch. It can save you 90% of the costs you need for custom development. All you need is to pay the basic payment (that is, $5,000-$7,000 in RexSoft) and then include the fee of $8 for each scooter monthly.
- Try to get e-scooters in terms of a lease contract. This kind of cooperation with a supplier allows you to save costs and pay them partly after the start.
- Apply for accountant services of freelance specialists instead of hiring an accountant.
These tips may help you reduce costs and focus on the process instead of finding extra money for your business start. Be sure that your electric scooter business will pay off in several months, so do not fear starting it.
