An electric scooter rental business is a type of service that allows individuals to rent electric scooters for a short period. These businesses typically operate in urban areas and provide an alternative mode of transportation for short-distance trips.
The concept has gained popularity in recent years due to the increased demand for convenient and eco-friendly transportation options.
Electric scooter rental businesses offer a convenient and flexible transportation option for short trips, providing an alternative to traditional transportation methods like cars or public transit. They are often seen as a sustainable solution, as electric scooters produce lower emissions compared to fossil fuel-powered vehicles.
The electric scooter rental business belongs to the broader industry of “micro-mobility” or “shared mobility.” Micro-mobility refers to transportation options that are typically designed for short-distance trips and utilize small vehicles like bicycles, electric scooters, and electric bicycles (e-bikes).
Steps to Write an Electric Scooter Rental Business Plan
Table of Content
Big Joe® Electric Scooter Rental, Inc. is a Nashville-based company that aims to provide convenient and eco-friendly transportation solutions to residents and tourists in the city. Nashville, Tennessee, is a rapidly growing city with a thriving tourism industry.
The city’s rich musical heritage, diverse cultural attractions, and bustling downtown area make it an ideal location for our electric scooter rental business. Our goal is to capitalize on the increasing demand for sustainable and flexible transportation options, while also supporting the local economy.
Big Joe® Electric Scooter Rental, Inc. is poised to become a leader in the electric scooter rental industry in Nashville, Tennessee. With our focus on sustainability, convenience, and customer satisfaction, we aim to meet the transportation needs of residents and tourists while contributing to a greener and more livable city.
Through strategic expansion and partnerships, we are confident in our ability to achieve significant market share and profitability in the coming years. Joe Mathias is the founder and CEO of Big Joe® Electric Scooter Rental, Inc.
a. Our Products and Services
We offer a fleet of electric scooters for rent, allowing customers to easily navigate through Nashville’s vibrant streets, reduce traffic congestion, and contribute to a cleaner environment. Our electric scooters produce zero emissions, reducing the carbon footprint and improving air quality in Nashville. By choosing our rental service, customers actively contribute to the city’s sustainability goals.
b. Nature of the Business
Our electric scooter rental will operate the B2C – Business to consumer business model. We will offer our services directly to the end user without any middleman arrangement.
c. The Industry
Big Joe® Electric Scooter Rental, Inc. will operate in the “micro-mobility” or “shared mobility.” industry.
d. Mission Statement
Our mission at Big Joe® Electric Scooter Rental, Inc. is to provide convenient, eco-friendly, and affordable transportation solutions to the residents and visitors of Nashville. We strive to promote sustainable mobility, reduce traffic congestion, and contribute to a cleaner environment while delivering an exceptional rental experience for our customers.
Through cutting-edge technology, exceptional service, and a commitment to safety, we aim to revolutionize urban transportation and make a positive impact on the communities we serve.
e. Vision Statement
At Big Joe® Electric Scooter Rental, Inc., our vision is to be the leading provider of electric scooter rentals in Nashville and beyond. We envision a future where electric scooters are the preferred mode of transportation for short trips, fostering a more sustainable and vibrant city.
f. Our Tagline (Slogan)
Big Joe® Electric Scooter Rental, Inc. – “Unleash the Joy of Sustainable Mobility!”
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Big Joe® Electric Scooter Rental, Inc. will be formed as a Limited Liability Company, LLC.
h. Our Organizational Structure
- Chief Operating Officer (Owner)
- Operations Manager
- Accountant (Cashier)
- Marketing and Sales Officer
- Rental Officer
- Customer Care Executive (Front Desk Officer)
i. Ownership/Shareholder Structure and Board Members
- Joe Mathias (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
- David Kenneth (Board Member) 19 Percent Shares
- Vincent Bonny (Board Member) 10 Percent Shares
- Richie Mendy (Board Member) 10 Percent Shares
- Mercy Joel (Board Member and Sectary) 10 Percent Shares.
- Big Joe® Electric Scooter Rental, Inc. offers a sustainable and eco-friendly mode of transportation, aligning with the increasing demand for environmentally conscious options.
- The mobile app-based rental system provides customers with a user-friendly and convenient experience, allowing them to locate and rent scooters easily.
- The scooters are equipped with advanced safety features and GPS tracking, ensuring a safe and reliable riding experience for customers.
- Big Joe® Electric Scooter Rental, Inc. offers competitive rental rates, providing an affordable alternative to traditional transportation methods.
- Nashville’s growing population, tourism industry, and emphasis on sustainability create a favorable market for electric scooter rentals.
- Electric scooters may have limited range and battery life, requiring frequent charging and potentially impacting the availability of scooters during peak usage times.
- Inclement weather conditions, such as rain or extreme heat, may reduce customer demand and usage of electric scooters.
- Accidents or injuries involving riders could result in legal and liability challenges for Big Joe® Electric Scooter Rental, Inc.
- There is an opportunity to expand operations to other cities with similar characteristics and market potential, capitalizing on the growing trend of electric scooter usage.
- Collaborating with local businesses, hotels, and tourism organizations can increase visibility and accessibility, attracting more customers and driving business growth.
- Government initiatives and incentives promoting sustainable transportation can further support the adoption of electric scooters and create a conducive environment for growth.
i. How Big is the Industry?
The “micro-mobility” or “shared mobility” industry that the electric scooter rental business is a part of is a small and growing industry. The electric scooter rental industry is expected to expand to new cities and regions, both domestically and internationally.
As more cities embrace sustainable transportation options, there will be increased opportunities for electric scooter rental companies to enter new markets and cater to the growing demand for convenient and eco-friendly mobility solutions.
ii. Is the Industry Growing or Declining?
The “micro-mobility” or “shared mobility” industry is a growing industry. The available statistic shows that the E-Scooter-sharing segment in the United States is projected to grow by 9.47% (2023-2027) resulting in a market volume of US$999.20 million in 2027.
iii. What are the Future Trends in the Industry
As technology advances and the cost of electric scooters decrease, there will be a shift towards fully electrified scooter fleets. This transition from traditional fuel-powered scooters to electric ones will help reduce emissions, improve air quality, and align with sustainability goals.
Electric scooter rental companies may collaborate with cities to integrate their operations with smart city infrastructure. This could involve leveraging data analytics and real-time information to optimize scooter deployment, manage traffic flow, and improve overall transportation efficiency.
iv. Are There Existing Niches in the Industry?
No, there are no niche ideas when it comes to the electric scooter rental line of business.
v. Can You Sell a Franchise of Your Business in the Future?
Big Joe® Electric Scooter Rental, Inc. has plans to sell franchises in the nearest future and we will target major cities with growing tourism potentials in the United States of America.
- Evolving regulations and restrictions on electric scooter usage imposed by local authorities may impact operations and require compliance measures.
- The electric scooter rental market is becoming increasingly competitive, with the entry of new players, which may result in pricing pressure and customer retention challenges.
- Incidents related to accidents or misuse of electric scooters could raise safety concerns among potential customers and affect the public perception of the industry.
i. Who are the Major Competitors?
- Jump (Uber)
- Blue Duck.
ii. Is There a Franchise for Electric Scooter Rental Business?
Yes, there are franchise opportunities for electric scooter rental business, and here are some of them;
- Blue Duck
iii. Are There Policies, Regulations, or Zoning Laws Affecting the Electric Scooter Rental Business?
Yes, there are policies, regulations, and zoning laws that affect the electric scooter rental business in the United States of America. However, it’s important to note that these regulations can vary significantly from city to city and even at the state level.
Many cities require electric scooter rental companies to obtain permits or licenses to operate within their jurisdiction. These permits may outline specific requirements such as fleet size limits, operational boundaries, safety standards, insurance coverage, and data-sharing agreements.
Some cities impose minimum age requirements for scooter riders. For example, riders may need to be at least 18 years old to rent and operate an electric scooter.
Cities often establish rules and regulations governing how electric scooters should be ridden. This can include speed limits, designated riding areas, restrictions on riding on sidewalks, and adherence to traffic laws.
Cities may have specific guidelines for parking and docking electric scooters to prevent obstruction and ensure orderly parking. This may include designated parking zones or requiring scooters to be parked upright and out of the way of pedestrians.
Some cities require electric scooter rental companies to share certain data with local authorities, such as trip data or real-time scooter locations, to assist with urban planning and enforcement. Regulations related to data privacy and user consent may also come into play.
a. Who is Your Target Audience?
i. Age Range
Our target market falls between 12 years to 65+ years
ii. Level of Educational
We don’t have any basic educational qualifications for those we are targeting; everyone who falls within our target age range is welcome to rent our electric scooters.
iii. Income Level
Anyone who can afford our rental fee will be welcome to rent our electric scooters.
There is no restriction when it comes to the ethnicity of the people that will rent our electric scooters.
There is no restriction when it comes to the language spoken by the people that will rent our electric scooters.
vi. Geographical Location
Anybody from any geographical location will be welcome to rent our electric scooters.
Big Joe® Electric Scooter Rental, Inc. will not restrict any patron from renting our electric scooter based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Host Themed Events That Catch the Attention of Potential Clients.
- Tap Into Text Marketing.
- Use FOMO to Run Photo Promotions.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with other rental companies and related organizations in our Area
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH Marketing – Public Transit like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for each of our clients.
- Create an efficient content marketing strategy.
- Create a community for our freelance marketers and influencers.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
Big Joe® Electric Scooter Rental, Inc. will adopt the following pricing strategies:
- Cost-Plus Pricing
- Value-Based Pricing
- Competitive Pricing
- Dynamic Pricing
- Bundle Pricing
Please note that our pricing strategy is based on a careful analysis of the costs and profitability of the business, as well as the needs and preferences of the target customer base.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, freelance marketers, and social media influencers to help refer clients to us.
Big Joe® Electric Scooter Rental, Inc. will establish strategic partnerships with local businesses, hotels, event venues, and tourist attractions to gain insights into anticipated demand and adjust inventory accordingly. Collaborating with partners can help predict spikes in demand during special events or high-traffic periods.
b. Inventory Strategy
Big Joe® Electric Scooter Rental, Inc. will utilize forecasting techniques and conduct demand analysis to estimate the expected demand for electric scooters in different time periods, such as weekdays, weekends, or seasonal variations. This analysis will help determine the appropriate level of inventory needed to meet customer demand while avoiding excess inventory.
Having a flexible inventory strategy that allows for scalability is essential for accommodating future growth. We have a plan for potential expansion into new markets or increased demand in existing markets by ensuring access to additional scooters or adjusting fleet composition as necessary.
By conducting regular inspections, addressing issues promptly, and scheduling routine maintenance, Big Joe® Electric Scooter Rental, Inc. will reduce the number of scooters out of service due to repair needs.
c. Payment Options for Customers
Here are the payment options that Big Joe® Electric Scooter Rental, Inc. will make available to her donors and contributors;
- Bank Transfers
- Credit or Debit Card
- Electronic Payment Systems such as PayPal or Venmo.
d. Return Policy, Incentives, and Guarantees
Big Joe® Electric Scooter Rental, Inc. can establish a return policy to provide clarity and guidelines for customers who need to return rented scooters.
To encourage customer loyalty and repeat business, Big Joe® Electric Scooter Rental, Inc. can offer various incentives. Some possible incentives include loyalty programs where customers earn points or rewards for frequent rentals, discounts for extended rental durations, referral programs that reward customers for referring new users, and promotional offers or discounts for specific periods or events.
Big Joe® Electric Scooter Rental, Inc. can provide guarantees to instill confidence in their service and ensure customer satisfaction. Big Joe® can guarantee that all scooters are regularly inspected, well-maintained, and equipped with safety features to provide a safe riding experience for customers.
e. Customer Support Strategy
Our customer support strategy will involve ensuring that clients can contact the electric scooter rental business through multiple communication channels, such as email, phone, and social media. We will also make sure that all contact information is clearly displayed on the business’s website and promotional materials.
We will foster a culture of putting clients first, where staff are trained to listen actively and empathize with clients’ needs. We will encourage staff to go the extra mile to ensure clients feel valued and supported. We will implement a CRM system to manage client data, track clients, and follow-up activities.
We strive to provide excellent customer service, ensuring a positive experience for every rider. Our dedicated support team is available 24/7 to address any concerns or issues that may arise.
- Regularly inspect and maintain scooters to ensure they are in good working condition.
- Implement a tracking system to monitor scooter locations and availability in real-time.
- Optimize fleet size and composition based on demand patterns and customer feedback.
- Replace or retire scooters that are no longer in optimal condition or are underutilized.
- Establish a network of charging stations strategically located throughout the operating area.
- Implement a charging schedule to ensure scooters are adequately charged and ready for rental.
a. What Happens During a Typical Day at an Electric Scooter Rental Center?
- The business is open for the day’s work
- The electric scooters are cleaned, charged, and ready for rental
- Customer’s requests to rent scooters are attended to
- Schedule maintenance of the scooters is carried out
- Marketing/website upkeep
- Supply ordering
- Administrative duties
- At the end of the day, staff members clean up the facility and prepare it for the next day.
b. Production Process
There is no production process when it comes to an electric scooter rental business.
c. Service Procedure
Our business model centers around providing a user-friendly and accessible rental experience. Customers can locate and rent our electric scooters through a mobile app, making the process quick and convenient. The scooters are equipped with advanced technology, ensuring safety and ease of use for riders of all skill levels.
d. The Supply Chain
Big Joe® Electric Scooter Rental, Inc. will establish a business relationship with wholesale supplies of electric scooter supplies and merchandise.
e. Sources of Income
Big Joe® Electric Scooter Rental, Inc. makes money from renting scooters and selling of merchandise.
a. Amount Needed to Start Our Electric scooter rental?
Big Joe® Electric Scooter Rental, Inc. would need an estimate of $250,000 to successfully set up our electric scooter rental center in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding, and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $80,000.
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $40,000
- start-up inventory – $5,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Scooters and Accessories – $120,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much Will It Cost?
Big Joe® Electric Scooter Rental, Inc. will not build a new facility for our electric scooter rental center; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.
d. What are the Ongoing Expenses for Running an Electric Scooter Rental Business?
- Rent or lease payments
- Utilities such as electricity, gas, water, and other utilities needed to operate the facility
- Scooter maintenance
- Staff salaries.
- Marketing and advertising
- Supplies such as paper towels, trash bags, cleaning products, and other items needed to maintain the facility
- Taxes and permits
- Credit card processing fees
e. What is the Average Salary of your Staff?
- Chief Executive Officer (Owner) – $55,000 per year
- Operations Manager – $40,000 per year
- Accountant/Cashier – $36,0000
- Marketing and Sales Officer – $35,000 per year
- Rental Officer – $35,000 per year
- Customer Care Executive (Front Desk Officer) – $25,396 per year
f. How Do You Get Funding to Start an Electric Scooter Rental Business?
- Raising money from personal savings and sale of personal stocks and properties
- Applying for a loan from your bank/banks
- Pitching our business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from our family members and friends.
a. How Much Should You Charge for Your Product/Service?
Generally, electric scooter rental prices are structured based on a combination of base fare, per-minute charges, and additional fees. Here is a general overview of the cost structure:
- Base Fare: We will charge a base fare that covers the initial unlocking of the scooter. This fee is typically a fixed amount and may vary between $1 to $3.
- Per-Minute Charges: The main component of the rental cost is the per-minute charge. This fee starts accruing once the scooter is unlocked and is typically in the range of $0.15 to $0.30 per minute.
- Additional Fees: There may be additional fees associated with scooter rentals. For example, some companies charge a small fee for reserving a scooter in advance, or there may be penalties for violating parking or riding rules.
b. Sales Forecast?
- First Fiscal Year (FY1): $260,000
- Second Fiscal Year (FY2): $360,000
- Third Fiscal Year (FY3): $420,000
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1): (10% of revenue generated)
- Second Fiscal Year (FY2): (20% of revenue generated)
- Third Fiscal Year (FY3): (25% of revenue generated)
d. Profit Margin of an Electric Scooter Rental Product/Service
The ideal profit margin we hope to make at Big Joe® Electric Scooter Rental, Inc. will be between 10 and 25 percent on service charges.
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
Big Joe® Electric Scooter Rental, Inc. will grow our electric scooter rental business by first opening other facilities in key cities in the United States of America within the first five years of establishing the organization and then will start selling franchises from the tenth year.
b. Where do you intend to expand to and why?
Big Joe® Electric Scooter Rental, Inc. plans to expand to
- New York City, New York
- Los Angeles, California
- Orlando, Florida
- Las Vegas, Nevada
- Chicago, Illinois
- San Francisco, California
- Miami, Florida
- Washington, D.C.
- New Orleans, Louisiana
- Boston, Massachusetts.
The reason we intend to expand to these locations is the fact that these cities represent some of the most frequently visited cities in the US based on their cultural significance, tourist attractions, and overall popularity among travelers.
The founder of Big Joe® Electric Scooter Rental, Inc. plans to exit the business via family succession. We have positioned structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without difficulties.
The company has successfully developed a detailed transition plan to smoothly hand over responsibilities to the new successor. This includes transferring ownership, training key personnel, and communicating with employees, customers, and suppliers about the change.