Why Starting an E-bike Rental Franchise is a Great Opportunity for Budding Entrepreneurs
Presently, India is heading towards an electrifying future. Indian Government has been taking concrete steps in addressing climate change by promoting the Electric Vehicles Industry. Therefore, e-mobility has become one of the greatest opportunities for entrepreneurs to participate.
In the coming years, we will see electric mobility becoming mainstream with companies investing lesser and lesser on gasoline vehicles. This trend has opened a huge opportunity for the electric bike rental business in today’s time.
The e-bike rental industry is catching the eyes of investors and is paving the way for e-bike rental franchise brands as it is a low-cost business opportunity and has a huge potential for investors. Let’s deep dive and find out what is making e-bike rental business lucrative for investors and franchisors.
According to sources, the electric two-wheeler market in India stood at around $27 million in 2017. It is expected to grow at a CAGR of more than 41% to reach $200 million by 2023, on account of growing need to curb air pollution levels across the country.
In India, some of the other key factors that would boost demand for electric two-wheelers include government incentive schemes, growing distributor & dealership network, rising online sales, and increasing affordability of electric two-wheelers being offered by leading automobile manufacturers.
Also, the growing research & development activities are expected to result in a wide product portfolio for electric two-wheelers, thereby positively influencing India’s electric two-wheeler market.
The Big Opportunity
The above statistics clearly show that e-bike rental businesses are on the verge of becoming a billion-dollar market, and the players involved in the industry are seeking great business potential in the future.
In recent years, e-bike-sharing is a thrilling new model of public and private transportation that has rapidly emerged. An e-bike is a new trend in the cycling world, which is now changing the bike-sharing industry.
E-bike has multiple benefits over traditional bicycles. It can offer a higher level of service compared to regular bike share systems. Moreover, electric bicycles reduce the effort required by the rider, promoting greater travel distances and easier use over hilly terrain.
From daily commuting to recreational purposes, renting an e-bike has become a convenient option for people for a lot of reasons. These e-bike rentals are almost everywhere you look, at crowded beach towns, in mountain resort communities, and in many other locations where local attraction and tour operators are present. Therefore, starting an e-bike rental business can be a great entrepreneurial endeavor.
Starting an E-Bike Rental Biz
Seeing the high potential of this industry, if you are now considering starting your own electric bicycle rental business, following these steps will help you become more profitable:
1. Researching a location: Researching your location is the foremost thing you need to do as it gives you the knowledge you need to build your company the right way. For eg: If you study successful bike renting places in India, its either Goa or Mysore or Ladakh, etc. In these places, the bike is the preferred means of transport as there are many places around to see in the radius of 30 Km. So, selecting the right location to set up your business is very important.
2. Purchasing the right bikes: You have to check which vehicle is perfect for your location. Suppose it is Goa, Activas are preferred, while if it is hills around, Enfields are preferred. Also, if your local area has a booming tourist industry, you may need to purchase more bikes to ensure that you have enough available for interested riders. However, it’s good to start small and be prepared to add more as necessary after the first few weeks.
3. Knowing your competition: If you’re setting up your business in a large city, chances are there may be a company already renting e-bikes. This means you will have competition. So, always remember to keep an eye on your competition in order to see what rates they are charging or what specials they may be offering. This will be allowing you to be able to stay competitive and keep the flow of customers coming in.
4. Promoting your e-bike rentals: In a bid to get your first customers, you need to let them know you exist; start promoting your e-bike rentals. You can hang prominent signs around your business and other locations, advertise in local tourist publications and with your local media. Furthermore, you need to connect with your consumers online too.
Before you decide to start the business, the main question that comes to your mind is ‘Who is this business right for’. You have to find out who your potential customers will be. Begin by thinking about who would benefit the most from your services.
You need to figure out if your main target audience will likely be tourists who come into your city while on vacation or you want to target daily commuters. In the case of an e-bike rental business, the age group that you can likely target can range between the ages of 16 to 75 years.
You can offer your consumers a variety of plans for e-bike rentals, starting from daily to monthly. Offering lower rates and a 24*7 functionality can give you an edge over your competitors.
Hence, if you target the right people with appropriate offers, you can achieve great success in your e-bike rental business.
Taking Franchise Route for Expansion
Franchising has been one of the most effective routes for expansion for most business ideas. With so many factors going in favor of e-bike rental services, it’s high time that franchise brands should disrupt the market to reap the benefits of the skyrocketing growth of e-bike rentals.
As a business model, an e-bike rental franchise can be a lucrative business opportunity, seeing the extravagant potential that the e-bike rental service holds. E-bike rental brands should look for a franchising route for expansion as it is a cost-effective method of expansion and ensures brands grow faster in lesser time.
E-bike rental franchise also becomes a profitable platform for entrepreneurs to venture in, with an amalgamation of a high-potential business model and a cost-effective expansion model.
As per sources, the start-up investment cost of the e-bike rental franchise ranges from Rs 20-50 lakh, with a minimum required area of 500 sq ft, which can also go up to 1200 sq ft. One can expect a Return On Investment of around 57% within the Payback Period of 1-2 years by operating an e-bike rental franchise.