How to start your business with the appropriate bike-sharing business plan?

How to start your business with the appropriate bike-sharing business plan?

“It is a rapidly growing global phenomenon: bikes of different breeds zipping through cities, being picked up and deposited at will. They belong to companies, not members of the public. The future of cycling could be sharing, not owning one,” wrote The Bike Europe, source of industry news, data, and analysis for the e-bike and bicycle industry’s decision-makers, at the start of this year. And the pandemic hasn't changed the situation significantly. 

According to a recent eight nation survey Oliver Wyman conducted with approximately 6,000 respondents, 44% of riders said they would be willing to increase their dependence on the service (shared vehicles and ride-hailing) in the future. 34% said they planned to use it as much as before the pandemic. 

Accordingly, there is a pretty big interest in starting a business based on a bike-sharing service. Every business should start with a detailed business plan. Here, we are going to explain how to create a business plan that it would be appropriate to implement in your business.

Mind the differences

If you are a newcomer or even if you have ride-sharing business experience, the first thing to remember before preparing a business plan - every vehicle sharing model is specific and has its own differences to keep in mind. 

In regard to bikes, it is important to remember that users are usually willing to take the bike from one docking station and return it to another. Sometimes, it is located on the other side of the city. So the service provider should calculate capacity, as well as vehicle availability in the most popular parts of the city during rush hours. That might be crucial. 

Know your customer

Before taking further steps and making any decision you must know your audience. So it is the right time to do market research. The first thing to do is to define the characteristics of your customer by identifying:

  1. Age - what is the age range of your customer more likely to use your services? What group of customer generations do they belong to? For example, people born in the mid-to-late 1990s and the early 2000s are referred to as Generation Z. There are some characteristics that identify their behavioral patterns, so you already know what they might and might not like. 
  2. Gender - do you plan to communicate with men, women, or both sexes? There are differences.
  3. Marital status and family - it might influence how the person is moving through the city. For example, if she or he must take into account the plans of their partner while scheduling their everyday activities.
  4. Location - what are the most likely points which your potential customer is moving between in the city?
  5. Income - how likely they are willing to use bike-sharing? And how much they would be willing to pay for the service?
  6. Language - what language are you going to use to communicate with your audience? And what languages you should make available on your app.

Usually, several groups can be identified according to these characteristics. The next step is to find people that are representing each group, talk to them and test your hypothesis and assumptions towards them. 

You can also calculate quite precisely the size of your target market. You can find it out by calculating the TAM, SAM, and SOM. TAM is the total available market for the service, for example, the total amount of users. SAM is a serviceable available market in the area you have chosen to operate. SOM is a serviceable obtainable market - a portion of the available market that you are willing to serve.

Choose what suits you best

After you have defined your target market and potential audience, you may start to consider what works best for your customer. There are three options to choose your bike-sharing business from and to put into your bike-sharing business plan:

  1. dockless bike-sharing - bicycles are freely available to potential users and they are not located at docking stations. Vehicles can be unlocked using a mobile app and afterward returned to a particular bike rack or even left along the sidewalk. This model is more suitable for tourists and other short-term use cases. Usually, dockless sharing services offer single rides for a small fee, for example, $1 or monthly fees for continuous use. The biggest risk of this model is high operational costs, as well as a bigger risk for vandalism or damage to the bikes;
  2. station-based bike-sharing - bikes are into docking stations and users can unlock them to have a ride. In addition, users must return the bike to the same or another docking station. Providers of this model usually offer payment of a flat membership fee plus the fee for the amount of time spent on the road. This is a good choice for the business due to low operational costs for maintenance or relocation. However, dockless bikes are becoming more accessible so there is a risk that a potential user will choose the service with no strings attached rather than one where he has to follow certain rules in terms of the place to leave his bike; 
  3. corporate bike sharing - in this case, the service provider takes care of the maintenance and relocation of bikes, if needed, but bikes are owned by the corporation. Most likely, the owner will make bikes available to its employees or use them as a magnet for their business, for example, if the company additionally owns a hotel or entertainment park. This model is the best for any operator. The only and quite significant risk is that the corporate partner can decide to leave this business at any time.

To sum it all up, the dockless bike-sharing model is more convenient for users but involves higher risks for service providers. Station-based bike-sharing is less risky for the service provider, but not as convenient for the end-user. So while making the bike-sharing business plan, the choice should be made depending on the other market players and the risks you are willing to take. And if you have a corporate partner, who is willing to buy bikes and you have to operate the fleet - do it, but remember that you can be left alone at some point.

Calculate all costs

The most important part of the business plan is to find a balance between revenue and costs. If you haven't had a ride-sharing business previously, you would be wise to understand and consider all costs that you will have to cover with your revenue stream. Here are the most important positions you have to think of:

  1. vehicle purchase costs - it is recommended that you start with a small fleet and test your business model. However, you will need a first investment to purchase your fleet. And keep in mind that after some time vehicles should be changed, so consider including depreciation costs in your bike-sharing business plan;
  2. IT costs - vehicles are just part of the business. The other part is software and apps that allow people to rent a vehicle and you run your bike-sharing business. You can develop the software from scratch. However, there are already appropriate ready-made solutions in the market that have all the functions you might need. For example, ATOM has been operating on the global market since 2018 and has all the expertise you might need;  
  3. marketing costs - what is the budget you are ready to invest so that people are informed about your service? Consider all options, for example, social media, local media, your own media (web site, newsletter). Think of the bonuses that you can offer to the client, for example, free rides. However, keep in mind that every bonus reduces your profit margin. Average statistics for fast-growing companies indicate that they invest 10-20% of turnover on marketing;
  4. maintenance costs - proper service should be provided to expand the vehicle’s lifecycle as well as to provide clients with the perfect service. So you will need a team of people that can check vehicles every day all over the city;
  5. costs for the customer support - your customers will look for options on how to contact you if they have questions while starting to use or using the service. You have to have somebody or even a small team ready to answer them.
  6. other costs - you have to hire an accountant. You may require legal support. You will have to cover fees to be able to use the payment system. 

You should consider making a total investment of EUR 15,000-30,000 to launch a small test bike-sharing fleet (30-50 bikes). For a proper full-scale and successful launch with several hundreds of bikes, you will need a total investment of EUR 70,000-100,000. 

What is your bike-sharing business model?

Your business model is the way you will get revenues from your service. A lot of different business models exist in the bike-sharing market. When you think of yours, take a look at what your competitors are doing and think of ways how you can be more attractive to customers. In addition, you have to consider location and take seasonality into account. And one more thing - act fast! This can be crucial for your future success. ATOM allows you to launch your bike-sharing business within a few weeks with a bike sharing software. Learn more about ATOM's solution for shared mobility.

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The hidden costs of running a shared mobility business
The hidden costs of running a shared mobility business

🚲 The biggest costs in shared mobility are often the ones riders never see. Behind every trip is a constant cycle of fleet balancing, maintenance, charging, customer support, and compliance. As fleets grow, these operational costs can have a bigger impact on profitability than the vehicles themselves. This article explores the hidden costs that shape every shared mobility business.

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Shared mobility often looks simple from the outside. A user opens an app, unlocks a vehicle, completes a trip, and moves on with their day. But not everybody knows that the system behind every ride is a bit more complex and can be quite expensive. For many operators, the biggest expenses are not always the most obvious ones.

As shared mobility continues to grow across Europe, operators face increasing pressure to improve efficiency while maintaining service quality. According to the latest European Shared Mobility Index, shared mobility services generated more than 700 million trips across Europe in 2025, reflecting continued demand for alternative transportation options. At the same time, profitability remains one of the industry's biggest challenges.

Across more than 300 shared mobility projects worldwide, one pattern appears consistently: operators often underestimate operational costs during launch planning while focusing primarily on fleet acquisition, permits, and launch activities. The largest challenges often emerge later through day-to-day operations, where downtime, fleet balancing, maintenance, customer support, and compliance costs gradually impact profitability.

Downtime costs more than most operators expect

Every shared vehicle is an asset that only generates revenue when it is available to users. A scooter waiting for repairs, a bike with a flat tire, or a car that has not been inspected after damage generates no revenue at all. For example, a scooter generating an average of two rides per day at €3 per ride produces roughly €2,200 in annual revenue. If recurring maintenance issues keep that vehicle unavailable for two weeks each quarter, the shared mobility operator could lose more than €250 in annual revenue from that vehicle alone. Across hundreds or thousands of vehicles, downtime quickly becomes a significant operational cost.

Yet the costs continue to build up – insurance, depreciation, financing, storage, and operational overhead do not stop simply because a vehicle is unavailable.

This becomes particularly noticeable as fleets grow. A single inactive vehicle may not seem significant but hundreds of inactive vehicles spread across multiple cities quickly become a major financial problem.

That is why many operators invest heavily in fleet visibility and operational tools. Platforms such as ATOM Mobility's vehicle sharing software help operators monitor vehicle status in real time and identify issues before they affect large parts of the fleet.

Unmet demand heatmap  (ATOM Mobility dashboard)

Fleet balancing becomes a business of its own

One of the least visible costs in shared mobility is fleet redistribution. Users naturally travel between different parts of a city. Over time, vehicles begin clustering in some areas while disappearing from others. The result is familiar to most operators – too many vehicles where demand is low and not enough where demand is highest. Solving this problem requires people, vehicles, planning, and technology. Large operators often maintain dedicated teams responsible for things like fleet redistribution, battery swapping, charging operations, station monitoring and demand forecasting.

Academic studies of bike-sharing systems consistently identify balancing and redistribution as some of the biggest operational challenges because they directly affect both utilisation and customer satisfaction. When users cannot find a vehicle nearby, they often choose another transport option instead. It’s even more difficult during big events, tourist seasons, weather changes, and rush hours when demand patterns shift rapidly.

Charging operations can become a major expense

For operators managing electric scooters, bikes, and mopeds, battery charging creates another layer of operational complexity. Vehicles must be collected, charged, swapped, and returned to high-demand locations. Labour, logistics, warehouse space, charging infrastructure, and electricity costs all contribute to the overall cost of fleet operations.

As fleets grow, charging efficiency becomes increasingly important. Poor battery management can increase downtime, reduce vehicle availability, and create unnecessary operational costs. For operators managing thousands of electric vehicles, charging and battery-swapping operations can require dedicated teams, warehouses, charging infrastructure, and specialised software to coordinate daily tasks efficiently.

Service app by ATOM Mobility

Small maintenance issues rarely stay small

Most vehicle problems start as minor issues but then become a bigger problem. A slightly damaged brake, a worn tire, a loose component, or a battery performing below normal levels may not immediately remove a vehicle from service. Left unresolved, however, these issues often become larger repairs that require more time, more money, and more operational effort.

For this reason, maintenance is no longer viewed as a reactive task by many successful operators. Instead, it is becoming an ongoing operational process supported by automation, diagnostics, and task management systems. So it’s important to identify problems before users do.

Many operators are moving toward more structured maintenance workflows, similar to the approaches discussed in ATOM Mobility's fleet management automation insights.

Customer support grows with every vehicle added

Customer support is often not thought enough about during launch planning. Founders typically focus on vehicles, apps, and pricing. Few spend enough time calculating the operational cost of helping users when things go wrong.

Support requests usually involve payment issues, failed unlock attempts, damaged vehicles, parking questions, account verification, trip disputes and other day to day problems. A fleet generating 100,000 monthly rides may receive hundreds or even thousands of support requests related to payments, parking violations, damaged vehicles, or account verification.

The cost of poor support is often higher than the cost of support itself because unresolved issues directly affect retention and reviews.

Regulation creates costs that did not exist five years ago

The shared mobility industry has grown significantly. A decade ago, many cities welcomed operators with relatively few requirements. Today, most cities expect detailed reporting, parking compliance, safety measures, accessibility standards, and operational transparency.

Operators increasingly need to invest in:

  • reporting systems
  • compliance processes
  • city partnerships
  • parking management
  • operational monitoring

These requirements create additional costs, but they are quickly becoming part of doing business in the sector. At the same time, cities are becoming more selective about which operators receive permits and long-term partnerships, making operational quality an increasingly important competitive advantage.

The strongest operators focus on efficiency, not just growth

Hidden costs rarely appear in business plans or launch announcements. They emerge gradually through downtime, maintenance, balancing, customer support, charging operations, and compliance requirements. Individually, each cost may seem manageable. Together, they often determine whether a mobility business becomes profitable.

Shared mobility businesses often talk about fleet size, market expansion, and trip volume. The operators that build sustainable businesses tend to focus on a different set of metrics, including vehicle utilisation, downtime, maintenance efficiency, and operational automation. Growth still matters, but it becomes expensive quickly when operational control is lacking.

Across the shared mobility industry, operational excellence is increasingly becoming a stronger competitive advantage than fleet size alone.

How technology helps control hidden operational costs

Many of the hidden costs discussed in this article can be reduced through better operational visibility and automation. Modern mobility management platforms help operators monitor fleet health, detect issues before they lead to downtime, automate maintenance workflows, prioritise field operations, optimise redistribution using real-time demand data, coordinate charging and battery-swapping activities, automate refunds for unsuccessful rides, and generate compliance reports with no manual effort.

At ATOM Mobility, we've seen these challenges across more than 300 shared mobility projects worldwide. While every market is different, operators that invest in operational efficiency early are often better positioned to achieve sustainable growth and profitability.

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Why station-based bike sharing is coming back: research and real-life examples of successful businesses
Why station-based bike sharing is coming back: research and real-life examples of successful businesses

🚲 While dockless scooters and e-bikes often seems to be the popular choice, many of Europe's most popular shared mobility programs are station-based bike-sharing networks. Systems like Vélib' in Paris, Bicing in Barcelona, and BikeMi in Milan continue to grow by combining predictable parking, strong integration with public transport, and increasingly popular e-bike fleets. What these programs have in common, how they operate at scale, and why many cities continue investing in station-based bike sharing?

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During 2019-2025, most of the attention in shared mobility went to dockless scooters. They were quick to deploy, highly visible, and seemed like the future of urban transport. But while many scooter operators expanded, consolidated, or exited markets, station-based bike-sharing systems quietly continued growing.

According to the 2025 European Shared Mobility Index, public bike-sharing schemes generated around 238 million trips in Europe, while private bike-sharing operators recorded another 124 million trips. Together, bike-sharing services accounted for more than 360 million annual rides out of more than 700 million rides (the other half was generated by free-floating scooters). While the industry spent years experimenting with different models, station-based bike sharing remained remarkably resilient. In many cities, it has become part of everyday transport infrastructure rather than simply another mobility service.

BikeMi bike-sharing station

The bike-sharing market is becoming more structured

One of the clearest themes from the latest index is that the market is becoming more disciplined. Operators are no longer chasing every possible market. Instead, they are focusing on locations where shared mobility can operate sustainably over the long term. Cities are becoming more selective too, favouring systems that fit into wider transport networks rather than uncontrolled fleet expansion.

This shift has created favourable conditions for station-based bike-sharing systems. Unlike dockless fleets, station-based programs offer more predictable parking, easier fleet management, and stronger integration with public transport. These advantages become increasingly important as cities focus more on accessibility, compliance, and long-term mobility planning.

What do Europe's largest station-based systems have in common?

The strongest argument for station-based bike sharing is the performance of some of the world's largest programs.

Vélib' (Paris)

Paris' Vélib' remains one of the most successful bike-sharing systems in Europe. The network combines thousands of regular bicycles and e-bikes across an extensive station network that covers much of the city. Vélib' generated approximately 48.5 million trips in 2025, making it the highest-ridership public bike-sharing system in Europe.

What makes Vélib' particularly interesting is that, for many Parisians, it has become part of their daily commute alongside buses, metros, and trains. That level of adoption only happens when riders know they can reliably find and return bikes where they need them.

Bicing (Barcelona)

Barcelona's Bicing demonstrates how station-based systems can scale with city support and careful planning. The system combines regular bicycles and e-bikes and has become deeply integrated into the city's transport ecosystem. Bicing recently surpassed 100 million total rides, making it one of the most successful public bike-sharing programs globally. Barcelona is becoming a fascinating mobility case study: shared scooters were banned, private dockless bike-sharing is being phased out, while the city continues expanding the public Bicing network. A clear signal that some cities are prioritizing station-based and publicly managed micromobility over free-floating models.

The success of Bicing also reflects a broader trend in Spain, where public bike-sharing systems continue receiving strong institutional support.

BikeMi (Milan)

BikeMi in Milan offers a slightly different model. Rather than focusing on rapid expansion, the system grew steadily through dense station placement, strong commuter adoption, and integration with public transport. Now BikeMi combines traditional bicycles and e-bikes, providing a reliable transport option for both residents and visitors. Its success highlights an important lesson for operators: long-term utilisation often matters more than rapid fleet growth.

Although Vélib', Bicing, and BikeMi differ in scale and geography, they share several common characteristics. All three prioritise station density, integration with city transport networks, and predictable rider experiences.

Electric bikes are changing the economics

One of the biggest developments in station-based bike sharing over the past few years has been the rapid growth of electric fleets. Public bike-sharing fleets are now approximately 48% electrified. More importantly for operators, electric bikes consistently generate more trips than traditional bicycles. Public systems average around 2.7 trips per vehicle per day, while some electric bike fleets achieve up to 4.6 trips per vehicle per day.

Higher utilisation means more revenue per vehicle, a faster return on investment, lower idle fleet costs, and stronger demand throughout the day. Electric bikes also make bike sharing accessible to a broader audience. Longer distances become practical, hills become less of a barrier, and riders who would not normally choose a bicycle are often willing to use an e-bike instead. This is one reason many newer station-based systems are launching with mixed fleets or even fully electric fleets from day one.

Why cities are backing station-based systems again

Across Europe, municipalities are placing greater emphasis on organised mobility systems that can be integrated into existing transport networks. The European Shared Mobility Index highlights several examples, including public support programs for bike-sharing subscriptions in Spain, continued investment in Barcelona's Bicing network, and London's decision to renew its Santander Cycles contract through a long-term investment programme.

For cities, the appeal is relatively clear. Station-based systems provide predictable parking, reduce street clutter, simplify accessibility planning, and make it easier to integrate bike sharing with buses, trains, and metro systems. As regulations become stricter and public space becomes more valuable, these advantages are becoming increasingly important.

Managing a growing station network

As fleets grow, operators need visibility into station occupancy, vehicle availability, charging status, maintenance workflows, payments, rider activity, and customer support. Managing these processes manually quickly becomes difficult, especially when systems expand across multiple districts or cities.

Many operators use platforms such as ATOM Mobility's bike-sharing software to manage stations, vehicles, rider applications, payments, maintenance, and operational workflows through a single system rather than relying on multiple disconnected tools. The largest station-based programs did not become successful simply because they deployed more bikes. They built operational processes capable of supporting growth over many years.

The growth of systems like Vélib', Bicing, and BikeMi suggests that station-based bike sharing has found its place in modern cities long-term. The focus now is less on expansion alone and more on operating reliable, efficient networks that riders can depend on every da

Check out the full 2025 European Shared Mobility Index here: https://fluctuo.com/reports

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