Know the myths and realities of the E-scooter rental business before going for e-scooter app development

Know the myths and realities of the E-scooter rental business before going for e-scooter app development (2)

If you are planning to kick off e-scooter rental business, but the market rumours are stopping you to be next Travis VanderZanden, you have come to the right place. In this blog, you will come to know top myths or rumours associated with the e-scooter rental business and what is the actual market landscape of one of the most profitable businesses of the 21st century.

The e-scooter rental business has evolved so rapidly and anything which evolves so rapidly evolves with a parcel of myths. Anyone who decides to go an extra mile, these myths clip his wings.

In recent time, some giant online and offline media houses have published news, showing the unfavourable outcome of the e-scooter rental business. They vilify it. They claim that e-scooter is no longer the best-loved mode of transportation for governments and people.

But the reality is different. E-scooter rental companies are still earning well. These companies are actively expanding their business boundaries and getting operational licences from the governments. Their usage rate is continuously climbing high nowadays.

In this blog, we are going to talk on the same. We will discuss top myths associated with e-scooter rental business and the actual market possibilities you need to know before going to start your own e scooter rental business and hiring someone for e-scooter app development.

Myths and realities of E scooter rental service business :


Myth 1: E-scooters’ popularity and usage are fading away!

Yes, it’s true – e-scooters are fading away. But only in winter!

Last winter, we heard about it a lot. Many news publishing sites presented the data of e-scooter usage rate of eastern cities of the USA and all major cities of Europe where the mercury falls to the freezing level and declared e-scooter rental business is a dying business. However, in spring, they were proved wrong. Do you know why?

Because, while declaring the e-scooter rental business is a dying business, they didn’t bother to understand the fact that people don’t prefer to ride e-scooters in freezing cold. Thus, during this time of the year, it is very common to have a reduction in usage rate of e-scooters.

From the following image, you can understand it more rationally. It depicts that in the last two months of the year 2018 and the first two months of the year 2019 (basically during winter season), the sales growth of all major e-scooter rental companies was minimum. But soon after winter, it again started to rise.

2018 and the first two months of the year 2019

So, if the winter or any other season of your business operational area is nasty, brace yourself to witness a downfall in usage rate during that period of time. However, you can contact our business experts to know how you can keep generating a good amount of revenue even during white weeks.

Myth 2: E-scooter rental business is suffering from small market problems.

The potentiality of the market matters the most while starting a business. Talking specifically about the e-scooter rental business, the other most popular myth is related to the market possibilities. They say that the e-scooter market is a small market where e-scooter rental companies have to fight an uphill battle in order to acquire the initial users.

However, the reality is totally different. Many e-scooter rental companies including some newly launched companies have acquired a good number of users and closed many successful funding rounds. Following is the data, showing the list of a recent funding round closed successfully and the milestone achieved by some e scooter rental service provider companies. This data will wipe out your fear of not acquiring a good number of users.

  • A month ago, Wind mobility raised another $50 million.
  • In May 2019, a Berlin-based e-scooter rental startup, Tier reached 2 million rides.
  • Flash rebranded as Circ and announced to complete 1 million rides.
  • Bird raised a series D round and reached $2.5 billion valuations.
  • A newly launched startup, Dott seized $34 million in its series A funding round.
  • Tier scooter app was downloaded for hundreds of thousands of times in Germany and in just 4 days, users in
  • Germany travelled a collective 300,000 Kilometres on e-scooters.


Myth 3: Hardware is not as important as software in the e-scooter rental business

scooter rental business is the resource-heavy business where the major resource, an e-scooter costs you more than $500. To reduce this cost, many business owners overlook the quality of e-scooters and deploy cheap and non-reliable e-scooters.

However, it is not an advisable idea.

Recently, governments have imposed many new rules and defined the structure of hardware over the concerns of riders’ safety and security. Looking at the urgency, many e-scooter rental companies also introduced new e-scooters which are more reliable, secure and most importantly, it lasts longer.

  • Last week, Bird announced that they are going to add next-generation of e-scooters into their global fleet. They named it Bird Two which comes with a bigger battery, autonomous damage sensors, no visible screws, and puncture-proof tires.
  • A Ford acquired e-scooter rental company Spin has also unveiled third-generation of e-scooters. Initially, they are planning to deploy 15,000 units of their new custom-designed e-scooters.
  • German carmaker, Audi, went an extra mile and launched something unusual in the segment. Audi’s new e-Tron e-scooter combines a traditional e-scooter and skateboard. Users can control it with their feet by shifting their weight and travel up to 12.5 miles. However, e-Tron e-scooters are equipped with regenerating braking which can lengthen its range.


Myth 4: A lot of players have already intensified the market

It is true that a lot of e-scooter rental companies are available in the market. However, this is just one side of the coin. If we flip the coin, we come across the fact which you have to know.

As we have discussed, the e-scooter rental business is the resource-heavy business. Moreover, companies need to get an operational licence from the local authorities and every city demands a new business plan as terrain, users, and competitors vary from city to city. Thus, e-scooter rental companies follow city-to-city expansion model and usually cover less than 10 cities.

You can derive many benefits from this limitation of the e-scooter rental business. Since most of the e-scooter rental companies are able to only offer their services in a few cities, a major portion of a profitable market is still untouched. You still have some room to manoeuvre. So, now all you need to do is, identify the untouched market and launch your service there. Or we can help you to find the best business opportunities if you want to start your own e scooter business.

app demo

We can also help you to jump into the already intensified market, with more advanced and unique user features, as well as security features and an app which is having best-in-class compatibility with hardware, thanks to our IoT integration skills.

Who we are? and How we can help you or a startup to kick start an e scooter sharing business?

We, as a leading e-scooter app development company, can help you to develop an e-scooter app for both highly competitive market and for the laid-back market.

For the highly competitive market, you can opt for the custom-built e-scooter app and for the laid-back market, we have a ready-made platform which is affordable and armed with all necessary features.

We will develop and deliver your e-scooter app within 45-55 business days and under $10000. We will also let you host the whole IT infrastructure of your e-scooter rental business on our servers.

To know more about e-scooter app features and ask for a free demo, contact our app scientist and business expert.

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