Want to develop an eScooter app?

Well, before proceeding with the development process, you should consider its different types. Learning about different types of eScooter app business models will assist you in considering the right one.

The eScooters app market is growing and is revolutionizing the way of transportation.

“Do you know that the global e-scooters market size is estimated at USD 37.07 billion in the year 2023 and is expected to increase at a compound growth rate of 9.9% from 2023 to 2030?”

Well, you can be the one to bring innovation to the industry with a new concept. However, you should be aware of its different business models.

Let’s study them all here.

A list of Electric Scooters App Business Models

What are the different types of eScooter app business models that exist in the market?

Here’s an easy list for you to check.

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1. Rent-Based Model

You must be aware of this type of business model in eScooter apps. Rent-based electric scooter business models are just like the pattern of Uber, Ola, and taxi-based rides.

Here users install the app and fill in all essential details such as their name, address, location, etc. Then they search for the nearby eScooter’s availability, book one, take a ride, and pay after completing it.

Under this type of business model, the app calculates the fare based on the time spent on the ride and distance covered. You can develop an app like Bird, Lime, or Spin in this type of eScooter business model.

Features:

  • All functions depend on the App
  • A track of users’ behavior is possible
  • Effective users connections

Estimated Revenue:

While building an app, one of the significant parameters is revenue. Well, one business model can survive only if it generates enough revenue to beat the competitive market.

The estimated revenue under this model can be $3.65 per ride. An increase in the number of rides over the app will automatically increase the overall revenue score.

2. Subscription-Based Model

Under this type of eScooter app business model, users pay a fixed price to access the service for a limited period. They are charged for using the eScooter app for a particular time, such as weekly, monthly, or a year.

This model is effective for those who want to enjoy unlimited rides after paying a subscription fee. Along with this, users can travel as many distances as they want within a specific amount.

One of the important challenges under this model can be retaining users in the long run. This is an important factor to remain competitive in the current market.

Features:

  • Source of permanent income
  • Facilitate users to pay a favorable amount
  • Helps to retain users in the long run

Estimated Revenue:

When you desire to cover the cost of building an eScooter app, it’s essential to know the estimated revenue.

Here the estimated monthly revenue can be $150,000, based on certain factors such as users’ needs and changing market scenarios, this amount can change.

3. Hybrid Model

The hybrid business model for eScooter apps is based on combining subscription and rent-based models to provide users with different price options.

This model is effective for providing flexible options to select eScooter rides based on their needs. Users can select the type of eScooters based on features and charges.

The top feature of this kind of business is they can rent an e-scooter easily. With different pricing options, they can decide their best price to ride.

Features:

  • Different Price Models
  • User-friendly models
  • Flexible user range

Estimated Revenue:

Here the estimated revenue can be $100,000 per month. Well, this can be one of the biggest motivations for you to continue with the hybrid escooter app business model.

This model provides you an effective chance to provide the users a diversified price categories.

4. Franchise Model

You can adopt this business model for an eScooter app to conduct operations on a large scale around the world.

Here, being a parent company, you can provide licenses to use brand name and technology to a local operator within diversified regions. These local operators are then responsible for managing the fleet and other operations.

It will help you to expand your eScooter app business to multiple locations and regions in the world.

Features:

  • Expansion to other regions
  • Low Investment
  • Chance to build a business image

Estimated Revenue:

Under this electric scooter business model, the estimated revenue can be $180,000 per month. It all depends on the networking and diversified areas covered by your business.

Here, you should consider the standard cost of living of every city and state, to critically evaluate the actual revenue under this model.

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5. White-Lable Model

This type of eScooter business model can become your ticket to growth in the competitive landscape. Here, you can partner with different industries such as hospitality, health, or educational centers to provide their customers with a facility to travel via escooters.

Under this type, you keep your brand name and handle all the escooter-related backend operations for these sectors.

Apart from this, you charge a commission or a defined amount for providing such an amazing service to their customers. It will also help to build an effective connection with the interested eScooter users.

Features:

  • Boon for the collaborated industry and company
  • Best Model to connect with new users
  • Brand image will remain intact

Estimated Revenue:

The estimated revenue under this eScooter business model framework can vary from $20,000 to $200,000 per month depending on the number of businesses and industries you have collaborated with.

The more collaboration will lead to more revenue for your business.

6. Shared Revenue Model

Under this pattern, you can reach out to the government and collaborate with them to provide transport facilities within the city.

Or, you can collaborate with transport authorities of the city or the targeted region, where revenue can be shared among the company and municipality.

From this model, you can get a permanent source of income generation. However, the total revenue will be shared between the two parties.

Features:

  • The loss will be shared.
  • Municipality interest will be included
  • Local people can get feasible and low-cost rides

Estimated Revenue:

Here the estimated revenue can vary from $50,000 to $150,000 monthly depending on how many people use the rides and what percentage of interest will be kept with the government.

You should note to evaluate different factors such as government interest, their scale of acceptance and investment, users’ awareness related to the product, etc.

From the above types, you can select the best business models to develop an escooter app.

Well, if you are still confused about how to proceed with selecting the suitable eScooter app business model, the next section is all about the same.

How to Select the Best eScooter App Business Model?

We understand that you need to select the appropriate business model that will be useful to nail the world.

Hence, take a quick check on the given steps for selecting the right business model.

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Step 1: Define Purpose

You need to define the aim of designing an eScooter app. This is the prime step to selecting the right business model.

Market research and selecting the target audience type can assist in defining the reason to go for an app development process.

Step 2: Analyse the Performance of Competitors

Evaluating the performance of competitors can assist you in deciding the result and future scope of different eScooter business models.

Under this step, you can successfully analyze the current market and the need for the required eScooter business model.

Step 3: Evaluate the Available Options

Now, you should check the available list of eScooter app business models. Then, should evaluate them based on the end purpose.

Here you can write down all the merits and demerits of the business model with respect to your ultimate purpose.

Step 4: Consider Financial and Operational Parameters

It is an essential step, for the alternatives you select. Here you should consider the financial and operational parameters for every alternative.

This will help you to include and exclude some of them from the end list to arrive at a suitable decision.

Step 5: Analyse Risk Aspects

Every business comes with a certain level of risk, right? Well, in the case of selecting the right business model for the eScooter app business, it’s essential to analyze the different levels of risk involved.

You can opt for insurance coverage to protect your business from having a huge loss or any unexpected risks.

Step 6: A Check Over User Preferences

Users are the ultimate consumers of your business model. Hence, you can launch an MVP and then collect reviews of the target users.

It will assist to have a check over the ultimate user preferences. Later, you can utilize these preferences to improve the overall performance of the eScooter app.

These steps will definitely be helpful to you in selecting the most suitable eScooter app business model.

Now, if you want to start with the right business model or need to discuss with a company, the next section can help.

Partner With Nimble AppGenie to Develop Next eScooter App

When you decide to proceed with a suitable business model, it is essential to select a suitable team to assist in this journey.

Nimble AppGenie is ready to help you here. We have an experienced team of experts who can take care of your every specific need with the app development.

We are the best eScooter App Development Company focused on delivering value to clients to help them achieve success.

Conclusion

Before you head to start an eScooter business, it’s important to learn about its different models. A shared revenue-based model is focused on sharing profit and loss with the government or municipality of the city. The rent-based model relies on approaching the target audience where they download and book a ride.

The subscription-based model is for providing users with unlimited rides by paying a fixed amount. However, under the hybrid model, they can select different pricing models as per their needs.

A white-labled model is designed to collaborate with different industries and companies to connect the new users, efficiently. To select the right model, you should know the purpose and target audience. An experienced app development company can help you here.

FAQs

The major types of eScooter app business models include the Rent-Based Model, Subscription-Based Model, Hybrid Model, Franchise Model, White-Label Model, and Shared Revenue Model. Each model offers unique features and revenue potential, catering to different market needs and operational strategies.

In the Rent-Based Model, users book an eScooter via an app, ride it, and then pay based on the distance traveled and time spent on the ride. It’s similar to ride-hailing services like Uber or Ola. The app manages the entire process, including tracking user behavior and calculating fares.

The Subscription-Based Model allows users to pay a fixed fee to access eScooters for a specified period, such as weekly or monthly. This model is ideal for frequent users who want unlimited rides for a flat rate. However, retaining users long-term can be a challenge in this model.

The Hybrid Model combines elements of both Rent-Based and Subscription-Based models, offering users flexibility in pricing and service options. Users can choose from various pricing plans and eScooter types, making it a user-friendly and versatile option.

The Franchise Model allows a parent company to license its brand and technology to local operators in different regions. These operators manage the fleet and day-to-day operations, helping the parent company expand its reach with minimal investment.

Revenue can vary significantly across different business models. For example, the Rent-Based Model can generate about $3.65 per ride, while the Subscription-Based Model might bring in $150,000 per month. The Franchise Model could potentially generate $180,000 monthly, depending on the scale and market.

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