Mopeds have become extremely popular in recent years. Why? They are considered a great alternative to a car or motorcycle. In the pandemic, they were also a great option to keep social distance. Mopeds are light, comfy, easy, and safe. But few people feel like investing in their own vehicles nowadays and moped-sharing operators are popping up in the world’s most developed cities. This article will explain a little more about the moped-sharing business.
How do moped-sharing systems work?
After downloading the moped-sharing app, users will need to go through a few steps in the registration process such as uploading their driver’s license and checking if it’s approved. They’ll also have to connect a digital payment method to their account. When everything is settled, they can locate a moped in the surroundings and reserve it. After that, they’ll simply ride the moped to the intended destination, safely park it, lock the device and return it.
Are moped-sharing companies profitable?
Many factors will affect a profitable outcome from your moped-sharing business. These include:
- Location - In which city will you start your business?Is the city open to mopeds and/or sharing companies? Or does it have strict regulations preventing your success?
- Timing - The season in which you plan to start your moped-sharing business will make a difference. Winter is a slower time due to cold temperatures.
- Competition - A thorough market research will guarantee that you are standing out from your competitors.
- Price of rentals - Your overall financial plans will need to consider this.
- Rides per vehicle per day - The number of rides each day will affect your financial plans, as well as the lifespan of your vehicles and how you will manage them.
- Maintenance efficiency and costs - The vehicle quality and model will affect its monthly maintenance. Before choosing a vehicle for your fleet, ask the manufacturer about its lifespan and do market research to confirm it.
- Charging efficiency and costs - Charging efficiency will affect how long your vehicles can stay on the streets for use. Look for powerful batteries.
- Marketing - Marketing is essential to promote your services and expand your brand awareness.
- Customer care - The way you treat your customers will make them hate or love your brand. Invest in good customer care for a loyal customer base. Since you will offer your services through a mobile app, you will need a lot of customer support.
These are just a few things to keep in mind that will affect your costs and success.
How to start a moped-sharing business
1. Start with the branding
Your brand is a strong imagery in the mind of your customers. Work on it! Define a logo, a brand name, a brand guidebook, and more. You need to be equipped with all these things to properly customize your mopeds and create a great website and app to go with them.
2. Define your goals and targets
Are you building a franchise model or are you dealing directly with your customers? Who is your target audience and how can you reach them? What are your KPIs? Think of clear goals and targets that you can objectively measure.
3. Documentation, licenses, and authorization
Each city will have different regulations and require different kinds of permits. One false step and you might be up to serious trouble. Make sure to have a lawyer or at least someone with a legal background in your team so that you won’t have problems in the future.
4. Safety first
Your mopeds need to be safe and sound at any time of day. Some people practice vandalism against mopeds or steel helmets. Also, there is always the risk of accidents. Make sure to be in control of these sorts of things. A good way to do this is through a GPS tracker.
Mopeds are every day more convenient and more popular. Therefore, moped-sharing businesses are every day more profitable. It is a good business to start since mopeds will certainly occupy an important role in the transportation alternatives of the future.