4 reasons why e-scooter hardware is as important as e-scooter software (e-scooter rental app) for starting an e-scooter rental business?

4 reasons why e-scooter hardware is as important as e-scooter software (e-scooter rental app) for starting an e-scooter rental business

Needless to say that e-scooter is the fundamental need for e-scooter rental business. And it is great to see that all entrepreneurs who are starting e-scooter rental business understand it.

But what they don’t understand is the fact that e-scooter hardware is as important as e-scooter software (e-scooter mobile app). As a result, they end up choosing inappropriate e-scooters and so, one of the most profitable businesses becomes the nightmare for them.

In the e-scooter rental business industry, many companies have misshaped the business model and suffered from financial crises, just because they didn’t bother to select nice, comfortable and safe e-scooters.

In fact, many governments took away the business operation licenses of these companies over the concerns of their e-scooter quality and safety of riders.

Recently, many e-scooter rental companies raised a decent different amount of money from different investors. But there is one thing common: they all want to use these case injections to upgrade the hardware of their e-scooters.

Why? Why all of sudden they start worrying about the e-scooter hardware rather than e-scooter software? Well, that’s what we are going to find out in this blog.

The need for a positive unit economics

If you are an entrepreneur and planning to jump into the e-scooter rental business, it is advisable to know the importance of positive unit economics which is nothing but the earning expressed per unit bases.

But why the unit economics should be positive in the e-scooter rental business?

Because, in the e-scooter rental business, the profit is basically calculated based on per e-scooter and for how long it can keep its place into the fleet.

For example, if an e-scooter which costs you around 500-700$, helps you to make $1 per ride, then it really matters that for how long does it take you to make more money than the price you paid for it.

Talking about the Bird which is the billion-dollar e-scooter rental company, went through the mill because of its poor hardware configuration. They have been constantly losing money (more than $100M) and users both. They have even found themselves in legal battles. But they later realized the need for a proper fleet of e-scooters and soon rolled out a new fleet of e-scooters named Bird Zero and Bird One which are more steadier and safer.

The outcome of introducing a new fleet of e-scooters appeared into their revenue graph without any delay. Recently, the CEO and Founder of Bird tweeted a photo, showing the positive unit economics of Bird.

4 reasons why e-scooter hardware is as important as e-scooter software (e-scooter rental app) for starting an e-scooter rental business

Coruscate is the top e-scooter app development company which will not only develop your future-ready e-scooter app, but we will assist you to select the best possible fleet of e-scooters for e-scooter rental business. We have tied up with some of the best e-scooter manufacturers who can help you to save your parcel of bucks. We even let you host the IT infrastructure of your e-scooter rental business on our servers which again save your bucks. So, connect with our app scientists and business experts to discuss e-scooter app features and the economical way of starting a profitable e-scooter rental business.

4 reasons why e-scooter hardware is as important as e-scooter software (e-scooter rental app) for starting an e-scooter rental business?


More features = More user engagement

After e-scooters, the other most fundamental need to start a successful e-scooter rental business is the IoT integration. With IoT integration, e-scooter app development companies like Coruscate can develop an e-scooter app which shows the real-time location of e-scooters, allows users to lock and unlock e-scooters from the mobile app and many more.

However, the previous or cheaper version of e-scooter doesn’t come with the technological advanced IoT controller. So, the e-scooter mobile app you get after e-scooter app development isn’t as feature-packed as the current market scenario urges.

On the other hand, the newest version of e-scooter which comes with the latest IoT controller, allows e-scooter app development company to accommodate some groundbreaking features in the app which will eventually increase the user engagement and experience. These features include theft alarm, high-speed alert, alert while approaching school or park, damage detection, and full remote access.

Legal norms (very important)

Taking care of citizens is the only job all government officers are paid for and fortunately, they all are doing it well. When they found that riding an e-scooter is dangerous for riders as well as pedestrians, they banned it, in some cities of the UK and USA.

In the past, whenever the government banned this very useful mode of transportation, companies dragged them in court and people criticized them badly. But looking at the data which says that at least 1500 e-scooter riders had been injured in the USA since 2017 and many died, the e-scooter ban makes a lot of sense.

However, considering the benefits of e-scooters, many cities later allowed e-scooter rental companies to operate the business but by following the strict guideline and rules. Yes, governments imposed many rules and documented guidelines regarding the safety of drivers and standard of e-scooter hardware.

Thus, our business expert always encourages you to study the legal norms of the cities first before choosing the fleet of e-scooters. And you can even seek help from our business expert team which is just a click away.

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Geographic conditions

scooter is the means of transportation, so the underlying purpose of it should be transporting riders to their destinations, even from the uphill road.

When the city of San-Francisco was rewarded with the first e-scooter rental program, it failed miserably for some of the users who wished to ride an e-scooter on an uphill road. The geography or terrain of San Francisco isn’t suitable for the low powered e-scooters. Most roads of this beautiful city are having some of the steepest gradients and as the result, for all e-scooter rental companies which are currently operating their business within the boundaries of San Francisco, it becomes necessary to deploy only those e-scooters which are equipped with high power output.

So, don’t neglect the geographic condition of your proposed business area, otherwise, people will prefer to walk on those steep roads rather than paying for your e-scooters. 

How much does it cost to develop an e-scooter rental app?

Being a leading e-scooter app development company and after working with many startups, we understand how important it is for a startup to save money. So, our pricing module for developing an e-scooter mobile app is very user-friendly and customizable. Which means, we only charge for the features, you ask us to integrate into your e-scooter app. Our all other consultation services like fleet selection guide, crafting a profitable business model, legal advice and some IT services such as app hosting and code ownership are free of cost.

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To know more about the e-scooter app features, and ask for free demo and consultation, contact us today.

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