Looking to launch an e-bike rental business? Here’s what you need to know

E-bike rental software Joyride

Recently, the global demand for e-bikes has accelerated thanks to a widespread push for healthier lifestyles, greener transit options, safer alternatives to public transportation and increased government financial incentives. E-bike sales are soaring and so is interest in launching shared mobility systems featuring the two-wheelers. Therefore, we’ve made it easier than ever for entrepreneurs to launch systems that rent out e-bikes for days, weeks or months at a time through Joyride Keep, our newest solution for long-term micromobility rentals. So what are you getting into if you launch your own e-bike fleet right now? The answer is a quickly growing industry that’s surpassing earlier predictions of market growth.

The e-bike market in 2020 and beyond:

  • Built to last: Bike-sharing statistics show that e-bike rental services and logistics software will help drive a 6.39% rise in the global e-bike market by 2024. The global e-bike market is expected to reach US$38.6 billion by 2025.

  • According to UC Davis research, U.S. e-bike sales have experienced tremendous growth, both at the onset and since the pandemic began, with June 2020 reporting a 190% year-over-year sales increase. Plus, ongoing research suggests that people who ride an e-bike are more likely to consider using one as a primary commuting vehicle—and one way to expose more people to e-bikes is through sharing programs. Many city-owned docked bike shares in places like Portland, Toronto and Chattanooga are already transitioning to e-bikes with this mentality in mind.

  •  Battery and motor manufacturer Bosch, which makes products for 70 e-bike brands, reported an 85% rise in demand for e-bikes this past March.

  • In the UK, the region’s Bicycle Association’s numbers reveal that bike sales rose by 63% between April and June 2020, and sales increased by 150% among £1,000+ e-bikes.

  • Prior to the global pandemic, an e-bike boom was already brewing in Germany. From 2017 to 2019, e-bike sales grew from 720,000 per year to 1.36 million. In the first few months of 2020, sales were already trending 30% higher.

  • According to an industry report by e-bike manufacturer Shimano Steps, 25% of Europeans now either own an e-bike or plan to buy one this year. New users reportedly ride longer distances in their everyday lives, many of them commuting to work. Corporate bike leasing company Deutsche Dienstrad says there are 1.6 million employees in Germany riding employer-provided e-bikes.

  • European governments are heavily subsidizing the costs of e-bike expenditures. For example, the governments of Austria and Luxembourg will provide 350, while France offers 200. In Norway and Sweden, subsidies of around 1,000 have led to a considerable e-bike boom in those regions.

  • Dutch e-bike maker VanMoof says the onset of the pandemic caused sales to see a 600% increase in April 2020 compared to the prior year.

Ok, the world is on an e-bike roll. How do you hop on? When it comes to launching your own fleet of vehicles, here are more numbers that are important to know:

  • Establishing a shared e-bike system entirely through Joyride’s platform can happen in five simple steps: 1. Select your model type, whether it’s a private B2B fleet or a city-wide public system; 2. Pick your hardware based on speed, style and city location; 3. Get your white-label app that syncs with the e-bike’s IoT and lets riders unlock vehicles, receive real-time alerts and engage with specialized marketing promotions; 4. Obtain any necessary city permits and insurance plans based on your fleet; 5. Finalize your rental strategy (are you offering short-term trips or extended rentals?) and start tracking your vehicles, accepting payment and setting geofenced markers using Joyride’s backend dashboard management system. 

  • E-bikes range in price, but ones for shared fleet purposes with sophisticated IoTs and a robust build typically cost between US$1,000 to US$1,200 per vehicle.

  • On average, e-bike motor assistance caps at 250W and cuts off once the rider reaches 15 miles per hour.

  • E-bike batteries usually last up to 40 miles. 

  • A recent study from Brigham Young University found that e-bike riders average four miles per hour faster than conventional bikes, and the average heart rate experienced while riding an e-bike is 93.6% of those riding traditional bikes.
  • While Joyride’s software platform can integrate with most IoT-powered e-bikes on the market, we are currently fielding strong demand for three specific models: ACTON’s Nexus e-bike, Okai’s EB100 and Hongji’s lineup of electric bikes. Inquire with our sales team to learn more about specific delivery times and prices for these vehicles. 

Joyride supports the full process of establishing and growing an e-bike fleet, from obtaining insurance through to vehicle selection and IoT integration. For more information on how to get started, contact us here

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