With global lockdowns lifting and cities reshaping their streets to make way for safe transit options, entrepreneurs are increasingly turning to scooter-rental systems as a viable business venture. The social (distancing) and geographical benefits are clear, and the financial ones should be, too.
In addition to providing the software platform and white-label mobile app needed to power any scooter-share business, Joyride assists with hardware, insurance and city permit setup, through to website development and branding services for scooter startups. Part of offering turnkey, one-stop-shop solutions means we’re able to view the whole picture of the scooter-rental launch process…financial upsides included.
Overall, the scooter-share industry experiences an estimated 27% to 30% gross profit margin on scooter rides, according to reports from Joyride’s current operators and those released by leading micromobility companies 2019. Here, we’ve broken down the margins so you can gauge your gains based on varying fleet sizes.
Figures are estimated on the earnings statements of top scooter-share companies. Based on a fleet size of 50 scooters, the upfront costs incurred in the first month of operation would total approximately $50,000—this is taking into consideration hardware (roughly $650/scooter), insurance, city permits and scooter software.
There are other varying fixed costs involved, but with industry profit margins in place, a 50-vehicle fleet owner can expect to recover upfront costs in three months. In other words, the company will become profitable by month four, typically. The profits will naturally increase based on fleet size.
This is why local, small-scale scooter companies are finding success in an industry once dominated by global micromobility giants that are running through their cash at an entirely different pace. With minimal capital outlay and turnkey solutions that provide all of your fixed and monthly operating costs on one streamlined platform, the revenue potential of operating a scooter-share business is substantial. Let’s talk about a plan that best suits your fleet size and growth trajectory. Contact us today.