How to Start eScooter App Business {An In-depth Guide}

Massive funding rounds, partnerships, and well-devised unit economics characterize the market of electric scooters. Between high revenue and entry of Uber and Lyft in the space, it is evident that the market growth rate of the domain is for the long haul. An event that you will find getting highlighted in the eScooter app development guide.  

This guaranteed high-growth electric scooter app market size has come on the radar of a number of entrepreneurs who are now becoming the victims of FOMO.

The number you will no longer be a part of after 11 minutes. 

Let’s walk you through the flourishing on-demand electronic commutation market touching bases like how the micro mobility vehicles were the missing piece of the profit puzzle, what entrepreneurs need to know to earn a place in the domain, why investors are a little too inclined towards the sector, amongst other things. 

But first, here is a quick glance at the on-demand commutation market. The one that would give a base to our eScooter app development guide. 

On-demand Commutation Market

On-demand technology has positioned itself as the Midas touch of the travel and commutation market. What started as the simple idea of enabling users to gain instant access to a mode of transport, has today become an industry that every entrepreneur wants to explore.

The simplicity of requesting a ride through a smartphone, sharing a ride with a fellow traveler who is going in your direction, and the ease of booking a bike when you wish to avoid heavy traffic are just some of the conveniences that have placed on-demand at the center of the commutation market. 

Now when we talk about the scope of on-demand economy on the commutation front you will find four sub-business models operating under one sector – all getting their fair share of growth and demand in the market. 

1. On-Demand Ride Services

On-demand ride services are the primal and most common types of the four sub-models of the on-demand commutation market. Started by flagships like Lyft, Uber, and Didi Chuxing, the model operates in a way where individuals who have a car enroll as a driver and then work in partnership with the parent company, in return of a percent of the money being earned on every ride.

2. Ride-Sharing

The next popular mode of commutation that millennial group of riders generally follow is the ride-sharing applications. This on-demand model targets one of the most less attended parts of the industry – the vacant car seats. 

In this case, when the users book a cab they are matched with other people going in the same direction and then they all take the ride together in one cab. 

The benefits that the transport industry achieves at the back of this model are three-fold – A. The commutation cost per person is lowered B. Gas emissions are lowered C. Traffic congestions reduces

3. Vehicle-Sharing

The third model present in the on-demand commutation sector is where people book a car or a bike, minus the driver. 

While not as common as the above-mentioned models, these also hold a good percent of interest coming in from the riders and even brands like Volkswagen. 

There are a wide number of people who partner with an aggregator business that connects them with end-users who book the vehicle to then self-drive on a kilometer or hourly basis. 

4. eScooter-Sharing

This on-demand commutation model is one which does not deal with cars and motorbikes, but eScooters. Under this model, people book eScooters using applications and use them as a last-mile option. 

Out of these four, eScooters are the most recent addition. And also the center of our article. Let us deep delve into the medium and see what the electric scooter market trends hold along with things and challenges that an entrepreneur looking to enter the domain needs to know that an entrepreneur who is looking to enter the domain needs to know.  

The Induction and Growth of On-demand Electric Scooter App Market Size

What was started by Bird in January 2017 have today become a major revolution. 

Ever since its first appearance, the idea of using eScooters to move from point A to point B, (  when the points are very close by) has been received with a very high level of interest and enthusiasm coming in from the end-users who are always on a lookout for cost-effective travel options. 

It took very little time for the news of eScooters entry in the on-demand commutation model to spread like wildfire. And a number of users jumped at the idea, which followed a similar reaction from the entrepreneurs who were looking for newness. 

The second Bird made an appearance in Santa Monica, Uber followed the suite and a number of millennials flooded in and showed a massive interest in choosing the commutation mode as their go-to last-mile travel option. The experience that eScooters gave them was that of an instant take back to childhood moment – something that was uber instagrammable. 

This cool quotient that came packaged with the eScooter model made it an instant hit. And soon after, the riders started taking notice of its time and cost-saving nature and the popularity increased further. Within no time, the electric scooter report and the whole business model caught the entrepreneurs attention who shifted their focus on entering the market at the back of this lucrative model. 

All this led to an electric scooter app market size that was untouchable. 

In all, in a matter of a few months, eScooter ride-sharing services were able to position them in a market where attention was coming in from all – riders and investors. A reason enough to get entrepreneurs attention. 

But the validations that eScooters app development is a good business move don’t just stop here. There were several other attached benefits of on-demand electric scooter apps as well. Let’s explore them in the next section of our guide to eScooter app development. 

Why is the eScooter Domain An Instant Hit Among Entrepreneurs?

Super-fast Return On Investment

The return on investment when entrepreneurs put their money in eScooters are a lot higher than any other product-based business. The amount that they spend in acquiring the e Scooters can easily be earned back after a few rides. 

It has the potential to become a lifetime source of earning at the back of a one-time investment. 

The Readymade Demand

The eScooter market solves the biggest worry of the entrepreneurs – what if there is no demand for my offering. In a matter of 2 years, e Scooters have created a very high demand for themselves in the market – something that makes it very beneficial for newcomers to enter the market. 

Less-explored Business Models

The Global on-demand electric scooters opportunities are huge. There are a number of features that businesses can offer along with the present pick and drop facility of eScooter apps. The app, mixed with Beacons, can be used to showcase discounts in nearby areas or they can be integrated with mom and pop shops to deliver goods in nearby areas. The potential for using eScooters is endless. And so is the electric scooter app market growth.

The Low Competition Rate

Even after being around for 1 to 2 years, the market players in the eScooter domain are still very limited. With the competition that can be counted on fingertips, the scope for a business to enter the market and create a brand name of their own is very high. 

While the reasons are primarily these and some others, the outcome that the mix of users and entrepreneurs’ demand has created is the lucrative market picture. 

The present time that the electric scooter app market size is operating in is one where the revenues and download rates on a very high note and the future that it is looking at is one which is driven by the promise of much greater user interest and market growth.  

The growth tangent that the on-demand eScooter domain has found itself on is partially the doing of the investors’ interest which has been at its peak ever since the launch of Bird. Something that has played a major role in bringing the electric scooter statistics on the upper side of the graph. 

Why Do Investors Love eScooters?

It is no surprise that investors are presently loving the eScooter based start-ups. While the main driving factor behind their fondness is FOMO, there are a number of other reasons why they are hopeful about positive electric scooter statistics. 

• eScooters are an instant hit among environment lovers, a group that is growing by thousands every passing minute. 
• Greater versatility. Everyone is in favor of the fact that the mobility industry needs variation. Cars and Bikes are not enough for users anymore, especially those who seek faster commutation time and cost-effective trips. 
• Low Maintenance. The mechanics of eScooters is such that there is hardly a chance for them to stop working properly or face any major maintenance expenses – something that makes the whole deal a lot more profitable. 
• Positive Unit Economics. The unit economics of eScooters, as you will read later in the article, are devised in such a way that the overall revenue that the entrepreneurs receive are always on the higher side as compared to the expenses that happen on a daily basis. 

The profit picture that every electric scooter market report presents have led to a number of entrepreneurs now entering the domain. With a few emerging as the top leaders. 

Top Players in the eScooter Sector

Seeing all the love that the investors from across the world are showering on the on-demand eScooter ridesharing sector, a number of entrepreneurs are entering the segment to make their presence and get a hefty share of the profit pie. 

However, there are a few companies that have been established as the top service providers of the micro-mobility domain. 

Here they are –

Now irrespective of who those famous brands are and how many more businesses are making their presence felt in the sector, the feature set that is commonly present in all of those applications are limited. 

eScooter App Features

While it’s true that innovation knows no bounds, there are some features that are commonly present in all the leading eScooter apps that are presently operative in the market. Being crucial to the main functioning, these are known as the must-have features that must be present in all the eScooter applications. Ones that have contributed immensely to the growing electric scooter app market size. 

Here are what those must-have eScooter app features are

A. QR Code

An inherent part of the eScooter app is the QR code. The QR code which is pasted on the eScooter has to be scanned by the application in order to start the ride. 

B. Real-Time Tracking

Using the feature, the users will be able to track where the eScooter is parked and how far they’ll have to walk to reach its destination.  

C. In-App Payment

Your users should be given the facility to make the payment of the application from within the app itself. This way, the user experience count would automatically increase. 

D. Ride History

This part of the app deals with showing the users their ride history, which contains the area covered and the cost that they had to pay. 

E. Push Notifications

Push notifications are a great way to engage app users. All the famous eScooter apps focus on offering well-timed push notifications aimed at keeping them interacting with the application multiple times a day. 

F. User Feedback

This is the element of your eScooter application that works around giving space for your users to give their feedback in terms of how the app is functioning or what changes they want to see being made in the application. 

G. Smart Lock

Using this feature, the users are able to lock the eScooter once their ride ends. This way, the next user will have to first unlock the vehicle from their app before they start their ride. 

The feature set that is commonly present in all the eScooter apps while devilishly simple in appearance, hold the potential to either make you an industry’s success story or can lead you to your demise. 

The one way you can ensure that you stay on the former’s side at all costs is by taking care of the technology stack. An operation that generally falls under the agency’s KRAs but something that an entrepreneur too needs to keep a tab on. 

eScooter App Tech Stack

The feature set that you read above while seemingly simple to develop are ones that come with a high scope of screw-up inducing elements if not developed right. Screw-ups that can have a grave impact on your business success rate. 

One way to ensure that your business does not face a grave future is by incorporating the right set of tech stack during the eScooter app development process. 

Now the choice of right technology stack while a difficult one to make becomes several steps easier when you have an idea of what other app companies functioning in the domain are based on. 

Well, here is the technology stack that the leading eScooter app companies have followed when answering how to develop eScooter app. 

The talk of app features and tech stack naturally builds up to the direction of eScooter app development cost – the sixth thing that the entrepreneurs are directly impacted by. 

Let us get you the answer to the element. 

Electric Scooter App Development Cost

While it is extremely difficult to estimate the mobile app development cost without a preliminary call detailing your requirements, we can help you with a rough estimate. 

Considering the feature set and tech stack that we shared above, the estimate of your eScooter app development cost will come somewhere across USD 60,000 to USD 80,000. But then again, this is simply a ballpark value. There are a number of factors that will come into play when deciding on the eScooter app development cost. 

In fact, there are two important cost factors that will get added into your overall answer to how much does it cost to develop eScooters app. 

Factors that are not related to the development process but hold a place in the expense chart – Acquisition and Maintenance cost. 

Both the cost variables play an important role in estimating the unit economics of working around an eScooter.

Let us look at the unit economics of Bird scooter to make the whole thing a lot clearer.  

Unit Economics of an eScooter app business like Bird

• An average Bird eScooter does around 5-6 trips every day, as the company disclosed in the June city council meeting. 
• The usual distance covered by every individual Bird trip is around 1.6 miles.
• The cost that riders have to pay to travel on Bird is $1 per trip plus extra $0.15 every minute after.
• Assuming that the average speed is of 7.5 miles per hour, normally a trip would last to up to 12.8 minutes.
• In this case, the average trip cost comes out to be $2.92.
• Now assuming that an eScooter takes around 5.5 trips every day, on an average the scooter would earn $16 on a daily basis.

While these figures details the revenue earned, let us look into the expenses, which majorly comes into two parts – Acquisition and Maintenance. 

The Xiomi eScooter that Bird presently uses sells for $500 on Amazon while only $399 in China. Assuming Bird is paying China’s price, the initial capital cost will get recouped in only a matter of 20 days. And even in case, it follows the price stated on Amazon, the time that it would take to make up the acquisition expense is 30 days. 

Now the main expense value that emerges here is of Maintenance.  

We know that Bird hires absolutely anyone to charge their scooters at night and then redeploy them on the streets in the morning. The amount that they pay to these chargers is $5 on every scotter. This leads to revenue of $11 per day, which was earlier $16.

In this unit economics, we still have not accounted for the lifetime of the eScooters and the oiling and greasing level maintenance – something that will bring down the revenue down. 

For a brand that is still at the ideation stage, it is important that you take into account the unit economics for only then you will be able to set the right costing chart. 

Here’s a hypothetical estimation of the unit economics that are currently at play in case of eScooter app companies, like Bird. 

One way you can cut down on the acquistion cost and the to-follow maintenance cost is by choosing to partner with the right eScooter manufacturers. 

The Choice of eScooter Manufacturers

To ease the process of searching for the right eScooter company to partner with, you can take a peek into our list of top eScooter manufacturers. The article entails all the manufacturers that you can partner with to start your scooter app journey on a profitable note. 

Now although you will get a list of eScooter brands that you can partner with, in the linked article, you will still have to look into the process of how to shortlist one of the many. 

What we suggest is using this shortlisting process – 

To start with you will first have to look at your user base – their age and the intent with which they would be leveraging your eScooter application.

And once you have done the study, you will have to choose between models that are best for covering small distances and then those which are deemed best for long distance travel. The choice that you will have to make on the basis of the speed and distance covered in a one-time charge.

When we talk about eScooters which are best suited for short distance, you should look for one that goes to up to 15+ miles on a single charge and runs on a speed of 10-15+ miles per hour.

In case of making a choice for your long-distance eScooter riders, you should go with the vehicles that give 30+ miles distance coverage per charge on the average speed of 40+ miles per hour.

Well, after everything’s said and noted, the last stage that you will have to cross – to get to the zone where your eScooter idea is converted into a full-fledged application – is finding an agency that would make the whole process easier.

How to Find an eScooter App Development Company

The process of finding an eScooter app development company is in many ways aligned with how you shortlist a mobile app development agency belonging to any other sector. 

The only core differences being in seeing if they have developed an eScooter app before along with certain other factors like –

• The technology stack that they hold an expertise in – if it is aligned with what the other eScooter apps are majorly based on. And if they are the ones that would make the app robust and scalable in the coming time. 
• The team size that they have employed in-house – it is very important to ensure that the team composition of the eScooter app builders in the app agency you are thinking of partnering with is such that they would be able to handle all the different parts of your mobile app process effortlessly and without any third-party help.
• The details of the work that they have done in the past – looking into the work the agency has done so far, especially on the on-demand front can be a great start of your partnership. Something as simple as the portfolio will get you an idea of what to expect from them, not just in terms of their development process but also the design guidelines that they follow.

• Seeing their ratings and reviews – there are a number of websites operative in the market today like Clutch and AppFutura etc which works around rating the different eScooter app development agencies around the world. These sites post ratings and reviews of different agencies with the intent of giving their complete picture to the entrepreneurs who are willing to enter the mobile app domain. 

You too should head over to these websites to see what other business have said about your shortlisted agencies. 

Besides these primary level points that have to be kept into consideration, you should also ensure that you have a first-round of discussion with the app development team before you settle on one partner. Doing this will get you insight into their thought process and the openness that they have in terms of exploration of an idea. 

Here was everything you have to know in order to place yourself in the future of electric scooter apps. The only thing left in you becoming a name in the electric scooter market share insights is the form below. 

Fill it up to get in touch with our team for eScooter development and electric vehicle charging software solutions. 

THE AUTHOR

Sudeep Srivastava

Co-Founder and Director