Climate change policies for an eco-friendly future and fitness-conscious individuals have set up e-bikes to become the perfect city commuting vehicles.
With sales rising to 17 million by 2030, now is the right time to tap into this market.
Electric bikes are cheaper than ICE or even EVs. These require minimal to zero maintenance and can charge for daily rides like any other electronic device battery.
Since the fuel for e-bikes is electricity, if you’re using renewable energy, your e-bikes will run for free.
The electric bike market segment is set to grow to $138+ by 2031 at a CAGR of 10.9%. This growth naturally extends into the rental sector too.
Start a profitable electric bike rental business today to actively rent out to daily commuters in your neighborhood or city.
We provide you with 8 tips on how to tap into the electric bike business opportunities.
How to start an e-bike rental business
Your e-bike rental business plan includes basic steps like mapping out the costs, assessing the competition, creating a marketing plan, and then using an e-bike rental software to kickstart your business.
Here’s how:
1. Calculate your upfront costs
A huge chunk of upfront costs for your e-bike business will be the e-bikes since a single one can cost anywhere between $1,500-$8,000.
If you’re struggling with initial investment, you can get a loan to start big or consider starting with a couple of e-bikes.
You can always add more to your e-bike fleet as the profits roll in.
Other costs to consider initially are a business license, liability insurance, e-bike rental insurance, business incorporation, website, rental software, and storage space.
2. Determine your e-bike rental rates
Your total profits will be directly related to how much rent you charge for your e-bikes.
You can opt for hourly rates for one-time enthusiasts.
You can opt for daily, weekly, or monthly rental rates for serious commuters and off-road e-bike adventurers (if that is the niche your business caters).
If you charge less, you may win customers from your competitors but it may not be sustainable in the long run.
If you charge higher, you may drive customers to your competitors.
If you’re the first e-bike rental business in your area, utilize the opportunity to set the bar for the rental rates for yourself and your future competitors.
Opting for a balanced approach will ensure a good return on your investment.
Take the cost of each bike into account and aim to gross $10 profit per rental hour. As a result, 150 rental hours per bike will garner a substantial profit.
This would be compounded further in 30 days of rent for each bike.
3. Pick the right e-bikes for your business
Minimize your initial investment by targeting a specific niche of e-bikers in the early stages of your business.
The e-biker niches are college students, tourists, mountain bikers, fitness enthusiasts, and daily commuters.
College students will need durable but lightweight e-bikes that can navigate swiftly and easily through pedestrians and busy areas.
Tourists and daily commuters will need comfortable cruiser e-bikes that can take them from point A to point B without breaking a sweat.
Mountain bikers and fitness enthusiasts will need heavy-duty e-bikes for endurance, off-roading, etc.
The niche you choose to target will determine which e-bikes you buy and what rental model you go for.
Rental models and locations will inevitably affect how long your customers rent your e-bikes.
Some common e-bike rental models include bike sharing for long-term commuters, city bike rentals, cycling tourism, and off-road bike trekking.
Decide on relevant market research and find your potential e-bike renters for your business.
You can always dip into multiple niches, offer multiple rental models, and diversify your e-bike fleet once your business starts netting enough profit.
4. Get to know your competitors
If you live in a big city or a tourist hub, your competition will already be present and may be dominating the segment.
To compete, keep an eye on the rental rates set by the competitors, and special deals they may be offering.
Get advice from a marketer or a consultant to strategize your entry and establish your market share.
Some popular strategies that work for all businesses are maximizing online visibility, providing exceptional customer service, and harnessing customer loyalty via deals and offers.
In the early stage, you can avoid direct competition by sticking to a niche your competitors aren’t targeting.
5. Create an e-bike rental webstore
Get your business online by creating an e-bike rental webstore. Most e-bike rental software comes packed with a website builder to start your business website and online store.
Make the webstore intuitive, easy to navigate, and eye-catching.
Showcase your electric bike fleet with accurate information about the range the batteries offer.
Create attractive deals and offer discounts based on your yearly holiday calendar.
Apart from e-bikes, rent bundles that include protective gear, carriers, lights, and maintenance equipment.
You can offer the e-bikes on your webstore separately from the bundles or group them all into package plans charged by the hour, day, week, or month.
It is important to highlight costs incurred if the customer damages or loses your rental equipment.
Lastly, attract mobile-using customers by ensuring your website is responsive and friendly on mobile devices, iPads, and tablets.
6. Build a fun social media presence
Social media platforms like TikTok, Facebook, Instagram, and X are the most powerful marketing tools you can use for free.
These platforms will allow you to target diverse demographics or specific audience groups who want to rent e-bikes.
Conduct thorough market research to see which platform is being used by the highest number of your customers.
Once determined, allocate monthly financial and effort budgets to focus on getting your customers’ attention on these platforms.
If need be, hire a dedicated social media manager for marketing outreach.
7. Get an e-bike rental insurance plan
Protect yourself against unforeseen circumstances and losses by getting an e-bike rental insurance plan for your e-bike rental business.
Some losses common to rental businesses are damage to or theft of rental inventory, and personal injury compensations your customers may claim due to faulty vehicles.
Rental insurance protects you from losses against fires, floods, storms, and other natural disasters.
A good insurance plan helps you handle such incidents swiftly and professionally, improving your reputation.
Additionally, certain jurisdictions may require e-bike businesses to have rental insurance as part of their licensing requirements.
Overall, having rental insurance will instill confidence in customers regarding renting your e-bikes while proving essential in mitigating malicious intent.
8. Utilize an e-bike rental software
Use e-bike rental software that helps you rent your fleet seamlessly.
A good holistic rental software will help you create credibility, offer exceptional customer experience, and get you paid quickly.
You will book rental orders online on your webstore, accept orders on the rental equipment mobile app, and quickly rent them out from anywhere you have the internet.
It will make things easier for you (and your employees) by letting you manage bookings, track the e-bike fleet, build trust with customers, and optimize rental logistics; all in one place.
Be the pioneer in the e-bike business segment
The frequent visibility of e-bikes on American roads is evidence enough that e-bikes are on the rise.
Tap into this rental market, use your entrepreneurial skills, and catch all opportunities before any other business.
Likely, you may be the first person to break into this market segment in your area. Make the most of it!
Now is the time to make the move.
If you’re interested, there are some more popular rental business ideas you can explore.
Happy renting!
