Ebike rental business

[DonnyBiker]

Hi there

First time on this site for three or four years, can't remember username or password...anyway...

Im in the position that I could open an ebike rental from my home here in west ireland. I live right on the coast in a rural area and nice scenic views and signposted cycle routes.
I live on a busy tourist road (wild atlantic way) but that doesn't tell me how many customers per week I could possibly have, its hard to figure out possible income because of this.

I don't think this will be a big money maker by any means, other shops I see are charging 35-40 euro for an ebike day rental, I was thinking of starting with 10 bikes but worried I may not get near enough customers so could start smaller.

If I got 25 rentals per week for june,july august @ €38 each and 12 rentals per week for april,may,sept @38 each the total would be just over 16.5k. But I could be way overestimating at that and would need to find other income during winter.

Theres one bike rental shop about 20min drive away, (doesn't seem to specialise in ebikes which I will) then one or two a little further out.

Considering good ebikes could be near 2k each, public liability insurance, insurance for bikes, website, seo, erect shed or use shipping container (too pikeyish?) , advertising signage, locks helmets etc etc I feel like I would need at least 30 rentals per week to make it worth while?

Any thoughts, ideas, advice, potential pitfalls?

 

[brianj_hill]

Sounds like a really fun idea - at least as a user and I'm sure there's a big market there.

Try this link here for further reading

https://ebikegeneration.com/blogs/news/how-to-start-an-ebike-rental-business

Best Wishes
Brian
www.rubikscube.biz
Helping people solve difficult business challenges

 

[ComPropSolicitor]

We have often considered hiring bikes and continually decided against it due to the cost - I get that there's overheads etc but circa £34.00 a day for bike hire x 4 (Is just crazy) most people probably have bikes already and like me simply decided to purchase a bike rack from Halfords for £49.00. Not trying to put you off just putting things into perspective. The bike hire thing works for me in the EU as I am not going to take a bike with me - but, in the UK... I'm not sure.

 

[Mark T Jones]

Having cycled the Ring of Kerry on a hired bike I wouldn't doubt there is a business to be had, but as is always the case, you need to do your own individual research.

you will be well aware this it is a highly seasonal business.

Some points for consideration:

You will need a good range (sizes) etc of safety and comfort accessories. Potentially at extra charge, but be aware that you have some responsibility for ensuring their safety.

It's probably best to have a number of set routes (along the lines of easy; moderate & challenging) marked with points of interest and food/drink places.

You will need to be on hand for roadside repairs, minor mishaps and people getting lost (you'll be surprised!). You could potentially hire yourself out as a guide.

From hearsay, I'm told that the Irish are somewhat aligned to the US in their approach to litigation (also, many of your clients will be Yanks); make sure you are legally sewn up!

 

[Mitch3473]

We have a ' normal bike hire 'place in town, we're in the heart of Snowdonia with some fantastic cycle ways. I think he charges about £40 per day and in the summer he's bombed out ( I wouldn't think 10 would be enough if he's anything to go by, 2 families basically...) but he shuts for 3 months in the winter. He rents out trailers for babies and small children and kids bikes as well. Only ever seen one electric bike and i've been on it. It's owned by an old guy who walks/runs his dog.....
If I was on holiday in that sort of area I may be inclined ( no pun intended ) to have a go on one but I would certainly offer both choices if just for the old fogies amongst us, you can always upsell the ebikes when the punters are in.
The idea of hiring yourself out as guide sounds like a great idea, could boost your sales/income considerably. Local maps ( possibly rent satnavs although that may encourage people off the beaten track..) Packed lunches, local fayre, view points and points of interest etc etc.....Aerial photography from a drone perhaps could all increase income !!!
Would definately consider the problem of running out of battery power and breakdowns though....

As a foot note, you mention 25 rentals a week, I'm sure, by the amount I see whilst walking our dogs, 25 a day ( 6 families) isn't out of the question especially at weekends in the spring/summer/autumn but as I say, we are in a popular biking/touristy area

I think you need to do some serious homework even if it means hiring a bike yourself at different times of the season in a similar area.

 

[Mr D]

Back in the olden days of yore a few decades ago, when out with a bike fitted with electric engine the problem of running out of power was solved with a spare battery carried in a bag on the bike.

 

[Gordon - Commercial Finance]

Sounds like you’re on to something, but at £2k a bike you might want to start a bit smaller. Maybe 2 normal bikes and 2 electric ones?

And a shipping container wouldn’t be terrible for storage, as long as they’re not just dumped inside the door amongst other junk. A decent shed kitted out with hangers would do the trick too.

Test the demand with lower stock levels and then see if you can justify adding extra bikes down the line.

 

[JEREMY HAWKE]

Having cycled the Ring of Kerry

I'm not sure if you should be telling people about that Mark

 

[Karimbo]

Seasonal business, no repeat business, small market. Do yourself and the other bike hire businesses a favour and dont set up a business like this.

Youll be competing for a tiny slice of a tiny market. Businesses like this will have overheads, not just the cost of bikes. Storage, maintenance, a suitable property to allow walk in customers.

Youll have people from all walks of life walking in. Some will want bikes for their 8 year old anx 14 year olds, some will want bikes with a toddler seat. Some want to ride along country lanes, others want to go in hilly areas.

Youll find that if you do a business plan, there are more costs than you are planning for and the margins will be smaller than you think.

Some will go out of juice and the ebike becomes too hard to pedal uphill. You get a call for a rescue on a saturday while youre out enjoying the weekend with your family.

If theres an established bike hire place operating. Most people will be reviewing bikes rental places, will look for photos of the shop on tripadvisor. They see an established place with 100 bikes. Then they see a startup with 5 bikes. Who do they go with?

You will need to start off big and have somethig fof everyone to get good revenue streams. You cant start off small with 5-10 bikes, youll look like an amatuer outfit.

 

[Mitch3473]

Seasonal business, no repeat business, small market. Do yourself and the other bike hire businesses a favour and dont set up a business like this.

Youll be competing for a tiny slice of a tiny market. Businesses like this will have overheads, not just the cost of bikes. Storage, maintenance, a suitable property to allow walk in customers.

Youll have people from all walks of life walking in. Some will want bikes for their 8 year old anx 14 year olds, some will want bikes with a toddler seat. Some want to ride along country lanes, others want to go in hilly areas.

Youll find that if you do a business plan, there are more costs than you are planning for and the margins will be smaller than you think.

Some will go out of juice and the ebike becomes too hard to pedal uphill. You get a call for a rescue on a saturday while youre out enjoying the weekend with your family.

If theres an established bike hire place operating. Most people will be reviewing bikes rental places, will look for photos of the shop on tripadvisor. They see an established place with 100 bikes. Then they see a startup with 5 bikes. Who do they go with?

You will need to start off big and have somethig fof everyone to get good revenue streams. You cant start off small with 5-10 bikes, youll look like an amatuer outfit.

....any other positives ???

 

[Mark T Jones]

....any other positives ???

All somewhat true, though - never under-estimate the stupidity of the buying public, especially when on holiday.

However, the real good advice lies in doing a researched and quantified business plan

 

[Paul Norman]

We have often considered hiring bikes and continually decided against it due to the cost - I get that there's overheads etc but circa £34.00 a day for bike hire x 4 (Is just crazy) most people probably have bikes already and like me simply decided to purchase a bike rack from Halfords for £49.00. Not trying to put you off just putting things into perspective. The bike hire thing works for me in the EU as I am not going to take a bike with me - but, in the UK... I'm not sure.

The opening poster is not in the UK.

 

[Paul Norman]

It is tough, from here, to assess the potential.

This kind of business not only works, but thrives in many places - for example Spain. And they hire out charge is often very modest indeed.

Like all tourist based opportunities it will be a bit seasonal.

Personally, I suspect starting with 10 bikes is a tad optimistic. Adding extra bikes if demand is good will not be particularly difficult to do quickly.

So, broadly, finding a way to assess the potential flow of people is your number one challenge to do the sums for this opportunity.

Oh - I think a shipping container is fine. You can smarten them up without spending all your money.

 

[Opinion87]

This kind of business not only works, but thrives in many places - for example Spain. And they hire out charge is often very modest indeed.

Where I am in Spain, the hire fees for a standard city bike are roughly €9 for one day, €18 for two days and €24 for three days.

The big up sell here is electric scooters- incredibly popular with locals and tourists. In the low season they are roughly €26 for one day, €32 for two days and €82 for three days. The majority of places use the same scooter which you can buy outright for just shy of €500 so some of those places will be raking it in. Over here they're road legal, which they aren't in the UK.

 

[Paul Norman]

Where I am in Spain, the hire fees for a standard city bike are roughly €9 for one day, €18 for two days and €24 for three days.

The big up sell here is electric scooters- incredibly popular with locals and tourists. In the low season they are roughly €26 for one day, €32 for two days and €82 for three days. The majority of places use the same scooter which you can buy outright for just shy of €500 so some of those places will be raking it in. Over here they're road legal, which they aren't in the UK.

That does interest me. Last time I was in Spain (last year) I was impressed how many electric bikes/scooters there were. It struck me that this was in many ways a better solution than electric cars. For sure I would use one over here if they were legal, and if I thought it would be safe to ride them on the roads in the UK.

 

[Opinion87]

That does interest me. Last time I was in Spain (last year) I was impressed how many electric bikes/scooters there were. It struck me that this was in many ways a better solution than electric cars. For sure I would use one over here if they were legal, and if I thought it would be safe to ride them on the roads in the UK.

I have one in the UK. Saves me a fortune in taxi fares. I've never been stopped by the Police (I ride on pavements/cycle paths) but then I don't ride around like an idiot. Seeing more and more people with them in my town as Halfords have started selling them.

 

[chickenlady]

Electric scooters are dangerous. My other half was knocked off one of the Paris ones which whizz around at ridiculous speed (about 25kmph I think) and halted his fall with his face. £6k of dental treatment later and he needs at least another £6k so that he can eat hard food again. His face is still a mess. The UK government are talking about regulating them - a woman was killed in London about a year ago I think.
Don't recommend an electric scooter. (Dentistry is obviously the way to go!)

 

[Gordon - Commercial Finance]

Electric scooters are dangerous. My other half was knocked off one of the Paris ones which whizz around at ridiculous speed (about 25kmph I think) and halted his fall with his face. £6k of dental treatment later and he needs at least another £6k so that he can eat hard food again. His face is still a mess. The UK government are talking about regulating them - a woman was killed in London about a year ago I think.
Don't recommend an electric scooter. (Dentistry is obviously the way to go!)

Thanks for your input, however this thread has nothing to do with electric scooters.

Also your story proves nothing about whether electric scooters are dangerous - it suggests to me that either Paris is dangerous, or your other half is dangerous.

 

[Financial-Modeller]

@DonnyBiker your numbers don't really stack up to a viable business. That doesn't mean that a viable business isn't possible, but, it could take several years just to pay for the bikes from hire charges you're proposing!

A few thoughts:

• buy normal rather than electric bikes for a LOT less money, and invest in ebikes if demand proves sufficient once up and running
• explore bulk discounts on the ebikes to reduce start-up costs and reduce payback time
• check out electric scooters as they are clearly of interest to many people as a mode of transport. They seem better suited to smooth roads/cycleways in cities, so may not be appropriate to more rugged surfaces though(?)
• consider moving upmarket to Segways. I've rented these in a couple of cities and they're a lot of fun. They would also differentiate you from others, and create more of a barrier to your next-door neighbour seeing your successful bike rental business and starting his own!

In each case, consider employing local students etc and operate guided tours if you can add extra value, and charge more for it.

Selling safety gear, water bottles, souvenir photos etc is likely to add to your bottom line, but re: SatNav, most people will use their phones.

 

[chickenlady]

Thanks for your input, however this thread has nothing to do with electric scooters.

Also your story proves nothing about whether electric scooters are dangerous - it suggests to me that either Paris is dangerous, or your other half is dangerous.

I'm pretty sure if you read it, electric scooters were suggested as an alternative to e-bikes. I've spent a lot of time in Paris and electric scooters are a hazard - abandonned on pavements (no lights or even relectors as I remember), ridden on pavements, weaving in and out of pedestrians (sometimes over them). The doctor in the very small A&E said they saw several scooter-related incidents every day. They are comparatively cheap which might make them more attractive to the OP. I hope s/he doesn't choose them because I don't think they are safe - 25kmph is a lot without a helmet, especially if you hit a rut or pothole, sheep or walker.

 

[Financial-Modeller]

...I'm pretty sure if you read it, electric scooters were suggested as an alternative to e-bikes. I've spent a lot of time in Paris and electric scooters are a hazard...

"I'm pretty sure if you read it" you will see that:

...Im in the position that I could open an ebike rental from my home here in west ireland. I live right on the coast in a rural area...

Not in Paris!

 

[Gordon - Commercial Finance]

I'm pretty sure if you read it, electric scooters were suggested as an alternative to e-bikes. I've spent a lot of time in Paris and electric scooters are a hazard - abandonned on pavements (no lights or even relectors as I remember), ridden on pavements, weaving in and out of pedestrians (sometimes over them). The doctor in the very small A&E said they saw several scooter-related incidents every day. They are comparatively cheap which might make them more attractive to the OP. I hope s/he doesn't choose them because I don't think they are safe - 25kmph is a lot without a helmet, especially if you hit a rut or pothole, sheep or walker.

Yeah I still reckon this is just Paris is dangerous. At best, electric scooters in Paris are dangerous, or the people who use them in Paris are dangerous. I've never been anywhere in the UK or Ireland where scooters were abandoned on pavements, ridden on pavements or ridden over pedestrians.

Also, pretty sure riding an electric scooter without a helmet here is illegal. As is riding one anywhere that you might hit a sheep. Unless there's some kind of electric scooter that I don't know about - an electric scooter is what some would call a Moped.....no?

 

[CHUKTC]

Just a another thought for you to consider. If having done your calculations it all adds up and you think it is a viable business you may want to consider buying directly from China. They are the largest manufacturers of E bikes and e scooters in the world and you can save a lot on your capital costs. If you need help with that let me know - be happy to point you in the right direction.

 

[simon field]

Electric scooters are dangerous. My other half was knocked off one of the Paris ones which whizz around at ridiculous speed (about 25kmph I think) and halted his fall with his face. £6k of dental treatment later and he needs at least another £6k so that he can eat hard food again. His face is still a mess. The UK government are talking about regulating them - a woman was killed in London about a year ago I think.
Don't recommend an electric scooter. (Dentistry is obviously the way to go!)

was he not wearing a helmet?