Recently, Bird, one of the major players in the e-scooter rental business, launched a new approach to increase its reach. Aiming at global expansion, Bird’s new deal to rent e-scooters to third parties is intriguing the entrepreneurs.
According to Financial Times, “Bird has begun selling scooters to third parties, who then use its software and networking platform to rent them out under their own brand. Bird will take a 20 per cent cut on every ride taken using its system.”
How on-demand e-scooter apps make revenue?
In the initial phase of any business, it is crucial to establish the brand and stay in pace with the competitors. The revenue model of Bird or Jump or any e-scooter rental app for that matter is pretty simple because commissions and third-parties don’t have a role. User pays and admin receives. Now, with the renting of e-scooter to other companies you can get commissions which will increase the Annual Run Rate. This will be a new strategy to make revenue apart from the original way of charging per ride. This is also a way to tie up with competitors which could eventually result in an M&A. If you are looking at launching an on-demand e-scooter rental app, then you can also consider offering this kind of deal.
What are the challenges you should be aware of?
E-scooter rental service is now seen as a profitable business model, especially in the first world countries. Riding e-scooters require good and functional roadways, mostly with a dedicated bike lane and pathways. The leading service providers like Lime, Uber’s Jump, Bird and Spin are working to expand their services. The primary challenge remains as infrastructure. The roads and infrastructure of the regions is the first check you should be doing before launching any on-demand e-scooter app.
Be aware of the transportation laws and insist on safety. Riders must carry a helmet and park the scooters safely.
There are many benefits and a few challenges in starting this business with an e-scooter app.
The benefits being a higher generation of revenue and minimal expenses, this on-demand service has huge potential. The major challenge to start this business would be developing an app that is similar to Bird. Emphasizing repeatedly that this generation entrepreneurs should choose clone apps over developing apps from scratch as it ultimately saves money, time and resources. The Bird clone app is the recreation of the original app and we offer a customizable and licensed app for your business to take off. Your business ideas can be integrated into the app as our developers offer the finest e-scooter app development services.
The basic and significant features for a Bird/Jump clone app we offer are,
Multiple payment gateways
Social media login
Ratings and reviews
Apart from all these, you can get anything integrated that you deem will bring operational profitability.
Why e-scooter rental business would be a hit?
Tourists and commuters who frequent short distance need more feasible and pocket-friendly transportation. E scooters are not just cheaper but are Eco-friendly as well. It is the real solution for real-world problems like traffic, pollution and provides affordable transit and easy accessibility.
The busy world needs on the go solutions and that’s why they rely on apps for most of the tasks in their daily routine. Offering a user-friendly app with a visually appealing UI/UX design definitely has the potential to acquire and retain customers.
Reach a wider crowd by establishing yourself on all digital platforms like iOS, Android and the web. Hire our e-scooter app developers to get a personalized app for your commerce needs.