The electric scooter rental business is developing every year and this is not surprising. Global energy problems are forcing people to give up cars and switch to electric modes of transport. For investors, the electric scooter rental business is interesting because this business has a high profitability, and during the season this business can cover the main costs and at the same time make good money.
In this article, we will talk about a scooter sharing franchise that allows you to quickly start an electric scooter rental business with minimum costs and errors. We will also analyze scooter rental franchise costwhat is included in the price and what do you get for the money.
Scooter rental franchise: how does it work?
Scooter rental franchise allows you to use all the necessary tools to start, manage and grow your electric scooter rental business. You are getting scooter rental app with a unique design and the necessary functionality. In addition, you get a program (CRM) for the effective management of your business. Powerful analytics modules will help improve the efficiency of the use of the fleet of scooters and staff.
What are you getting?
We prepare a unique app design in accordance with your preferences and wishes (color brand, logo). We customize the application for the specifics of your business (payment methods, promotional codes, promotions, rates, and so on). You get a powerful business management tool for renting electric scooters with different roles (administrator, manager, financier, charger). We set up CRM for the specifics of doing business in your region (taxes, payroll, etc.). The efficiency of an electric scooter rental business depends on the correct routing and placement of scooters. You get an analytics tool that allows you to track the movement of scooters in real time and, based on the data, make the right decisions about placing them on the map.
Besides the fact that you get the necessary software, you can implement any ideas with our team to improve the functionality.
Scooter rental franchise fee
One of the biggest benefits of a scooter rental franchise is this is the price. Let's explain everything in numbers. The cost of developing an application for renting electric scooters on a turnkey basis costs approximately $25000-40000, and this is provided that you are developed by a team from Eastern Europe with an average rate of $35-40. If you choose a team from the USA or Western Europe, the development cost can increase by 2-3 times up to $80000-100000. The cost of the scooter rental franchise consists of the first payment for setting up the application and programs and the monthly subscription fee. The first payment can cost from $4500-7000, and this is 10-20 times less the cost of developing an application for turnkey electric scooter rental. Let's take a look at what is included in the first payment in a scooter rental franchise.
First payment in scooter franchise
At the initial stage of launching an electric scooter rental business under a franchise, we prepare a unique design for a scooter rental application, customize the application and CRM according to your wishes and needs of doing business in your country (payment methods, promotional codes, promotions, travel rates, taxation). Let's look at the main works of this stage and their approximate cost.
| List of works | Description of work | Time spent, in hours | Cost, in $ |
| Unique UI design for scooter rental app, business card website | We prepare a unique app design according to your preferences (color brand, logo). | 40 | 1600 |
| Setting up the functionality of the application for renting scooters | We customize the application for the specifics of your business (payment methods, promotional codes, promotions, rates, etc.) | 20 | 800 |
| Setting up programs (CRM) for company managers | We customize CRM for the specifics of doing business in your region (taxes, other expenses) | 32 | 1280 |
| Connecting scooters to the app and CRM | We connect your fleet of scooters to programs to track and manage them. | 24 | 960 |
| Publication of an application for renting scooters on the marketplace. | We publish the application in the Play Market, iOS Store. | 16 | 640 |
| Publication of CRM for company managers | We publish essential software (CRM) for business management. | 8 | 320 |
| The test is | We test the correctness of the programs and their synchronization with the fleet of scooters. | 20 | 800 |
| Together | 160 | 6400 |
The calculation of the cost of starting an electric scooter rental business is approximate, because there are a number of factors that affect the amount of work required. Among which:
- Payment methods integrated into the software
- Number of scooters and model of scooters
- Specifics of doing business in the country (taxes, other expenses)
- Additional software functionality
Monthly subscription
When using scooter rental programs (client application and CRM for managers), the franchise owner pays a monthly subscription fee. The amount of the subscription fee depends on the number of scooters and is from $5 to $8 per scooter. The larger the park, the lower the rate for the scooter. To better understand the monthly fee, let's look at examples with different companies that have different fleets of scooters - these are 30, 50 and 120.
| Number of scooters | Rate per scooter | Monthly subscription |
| 30 scooters | $8 | 240 |
| 50 scooters | $6 | 300 |
| 120 scooters | $5 | 600 |
From the table we see that the monthly fee depends on the number of scooters. For example, for a scooter rental business that has a fleet of 50 scooters, the subscription fee would be $300 per month.
So, we examined the scooter rental franchise using the example of a franchise from the IT product company RexSoft. Its cost is the first payment and the monthly subscription fee. The first payment can cost $4500-7000 and the monthly fee for a business with 50 scooters will be $300 per month.
If you have any questions about starting a scooter rental business, please contact us through the RexSoft official website.