How to start your business with the appropriate bike-sharing business plan?
May 7, 2021
min. read
“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:
- 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.
- Gender - do you plan to communicate with men, women, or both sexes? There are differences.
- 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.
- Location - what are the most likely points which your potential customer is moving between in the city?
- Income - how likely they are willing to use bike-sharing? And how much they would be willing to pay for the service?
- 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:
- 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;
- 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;
- 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:
- 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;
- 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;
- 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;
- 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;
- 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.
- 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.
Interested in launching your own mobility platform?
Click below to learn more or request a demo.
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Fleet management with ATOM Mobility: The future of task automation
🔧 🚗 Simplify fleet management with automation! ATOM Mobility’s latest Task Automation feature creates maintenance tasks automatically, so you can focus on growth instead of scheduling. From mileage-based services to feedback-triggered check-ups, this tool has your fleet covered.
November 11, 2024
min. read
Automating fleet management with ATOM Mobility: The future of task automation
Managing a fleet comes with many moving parts—from ensuring vehicles are serviced regularly to addressing feedback and operational needs. ATOM Mobility’s new Task Automation feature optimizes this process by automatically creating tasks based on each vehicle’s real-time parameters, such as mileage, time, user feedback, and ride count. This allows fleet operators to focus on strategic growth while routine maintenance and issue resolution become automated. Here’s how this feature could make fleet operations smoother, efficient, and more scalable for shared mobility and rental businesses.
Task automation for fleet management
ATOM Mobility’s Task Automation feature builds on its ongoing focus to simplify fleet management. This new addition enables operators to automate task creation based on specific vehicle metrics, reducing manual effort and enhancing overall fleet efficiency.
The idea is brilliantly simple: instead of creating tasks manually (which can be tedious and time-consuming), this tool will automatically create tasks for you based on pre-set conditions.
With Task Automation, you can set specific parameters that will trigger task creation, such as mileage, ride count, ratings, or time. Picture this: every 5,000 kilometers driven, the system can automatically create a “Tire Check” task. Or if a specific vehicle receives user ratings below two stars, a “Low user review, check up required” task can be triggered. This approach to task generation not only saves valuable time but also ensures that vehicles receive consistent care based on real usage and performance, not guessing.
How task automation works in a nutshell
Setting up Task Automation in ATOM Mobility’s dashboard is designed to be as seamless as possible. The process essentially boils down to three simple steps:
- Log in to the ATOM Mobility platform, and head to the Fleet Maintenance section under “More.”
- Create a new automation: Specify the task type (like check-ups or cleaning ro anything else), set priority (low, medium, high), choose the relevant vehicle model, and add an optional description.
- Set a trigger parameter and value: Choose the metric that will trigger the task, whether it’s mileage, ride count, user feedback, or time schedule.
Once everything’s set, the system will keep track of these parameters for each vehicle, ensuring that when a trigger is met, a task will be created automatically and added to the dashboard. You’ll have everything you need to keep each vehicle in tip-top shape without manual oversight.
Why task automation is a game-changer for shared mobility operators
It’s no secret that keeping up with fleet maintenance can be a full-time job—and then some. Task Automation is built to give you time back in your day and enhance fleet health without excessive manual work. Here’s how it shines:
- Minimizing downtime and maximizing efficiency: With automated tasks created on schedule, you’re reducing the chance of missing maintenance, which can lead to unexpected breakdowns or, worse, unsatisfied customers.
- Boosting customer experience: Users expect seamless, safe, and reliable rides. By setting automated checks based on feedback ratings, you can address any hiccups before they escalate, like a regular check-up triggered when user ratings dip, ensuring issues are handled swiftly.
- Optimizing resource allocation: Operators save time, money, and stress by allowing ATOM’s platform to handle task creation. Staff can then focus on actual maintenance rather than constant monitoring and task creation, ultimately lowering operational costs.
Examples of task automation in action
To illustrate how powerful Task Automation can be, here are some scenarios where it could make a real difference for fleet operators:
- Mileage-based maintenance: Automatically set oil changes or tire rotations every 5,000 kilometers. No more sticky notes or vague reminders—once the mileage threshold is hit, the task is created instantly, saving time and maintaining vehicle health.
- Feedback-based follow-ups: Let’s say you have a popular scooter, but a few users have noted a squeaky brake. Once the feedback drops below a specific rating, an automatic check-up task is created. That way, you don’t have to wait for a cascade of bad reviews before you act.
- Time-based cleanings: Hygiene is crucial, especially in shared mobility. You could set a task to clean and sanitize vehicles after a set number of hours or rides, ensuring each user gets a fresh experience without needing someone to track hours.
Task automation meets scalability: ideal for growing fleets
For any business with a growing fleet, Task Automation provides a clear advantage. By using parameters to generate tasks, you can scale up without needing additional manpower just to manage scheduling. As your fleet grows, Task Automation scales with you, handling more vehicles and keeping you updated on the health and performance of each.
Think of it as a maintenance manager that grows alongside your fleet without increasing your operational costs. It’s no longer about manually checking every vehicle at every mile marker; it’s about letting the system manage maintenance alerts while you keep your attention on strategic growth.
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Getting started with task automation on ATOM Mobility
Setting up Task Automation is straightforward, but don’t hesitate to ask ATOM Mobility’s team for more detailed guidance. Here’s a quick overview to get you started:
- Select your trigger: Choose between kilometers, hours, ride count, or ratings, based on what matters most to your fleet.
- Define your task requirements: Each task is customizable, so you can specify different needs depending on the type of vehicle or its usage.
- Monitor with ease: Once in place, the automation will handle task creation. Just check in via the dashboard to monitor progress and handle any high-priority issues as needed. All the information and tasks are synced between the dashboard and fleet manager app.
ATOM Mobility’s commitment to innovation means we’re constantly updating our features to make fleet management more efficient and automated. Task Automation isn’t just a convenience—it’s an opportunity to elevate how you manage and grow your fleet in a sustainable way. With automation taking care of repetitive tasks, your team can focus on what really matters: delivering an outstanding experience to every rider.
Why now’s the time to automate with ATOM Mobility
The shared mobility industry is moving faster than ever, and staying competitive means embracing tools that make operations smoother and more efficient. ATOM Mobility’s Task Automation feature is a game-changer that brings automation to the forefront, allowing operators to focus on high-impact work while leaving routine tasks to the platform.
Whether you manage a fleet of e-bikes, scooters, or vehicles, automated maintenance can streamline your operations, prevent issues before they arise, and let your team work smarter, not harder.
Explore more about ATOM Mobility’s fleet management solutions on their blog and discover other products that can help you on your way to creating a micromobility fleet!
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Explore the future of mobility: must-attend events in Q4 2024
🚀 Ready to explore the future of travel and mobility? Here are the top 2024 (Q4) events for business owners and those looking to enter the mobility space! Don’t miss these opportunities to connect, learn, and meet ATOM Mobility team💡
October 14, 2024
min. read
ATOM Mobility will be attending three major events that focus on micro-mobility, car rental and taxi industry. We’re looking forward to making new connections, meeting potential partners, and showing how our platform can revolutionize shared mobility. Here’s where we’ll be and why you should join us!
World Travel Market (WTM) London 2024
- When: November 5-7, 2024
- Where: London, UK
- Website: World Travel Market London
WTM London is one of the biggest events in the travel and tourism industry, but it’s not just for travel enthusiasts! There’s a growing focus on sustainable urban mobility, making it an exciting event for businesses in the micro-mobility and vehicle-sharing space.
With industry leaders from all over the world, this is a fantastic chance to network and learn about how mobility is becoming a key part of travel experiences.
EU Taximesse 2024
- When: November 8-9, 2024
- Where: Cologne, Germany
- Website: EU Taximess
The EU Taximesse is Europe’s top event for taxi and ride-hailing services, but it's not just about taxis anymore. This event is also a great place to explore new mobility technologies, including vehicle-sharing and fleet management solutions. If you’re working in or alongside these industries, this is the event to check out.
Micromobility America 2024
- When: November 14-15, 2024
- Where: Costa Mesa, California, USA
- Website: Micromobility America
If you’re into micro-mobility, is the event to be at! Taking place in California, this event brings together industry leaders, startups, and city planners to discuss the latest trends in urban transportation. From e-scooters to e-bikes, it's a hub for everything micro-mobility. We’re excited to be attending this event to explore how cities can build smarter, greener transport solutions. Whether you're a startup, an investor, or a city planner, we'd love to connect and discuss how we can collaborate to transform urban mobility.
Why are these events a must, if you’re working in the field?
Connect with industry leaders: These events are the perfect place to meet key players in the mobility industry. Let’s chat and see how we can work together to drive innovation in micro-mobility and vehicle-sharing.
Discover the latest trends: Stay ahead of the curve by learning about the newest technologies and business models shaping the future of transportation.
Grow your business: Whether you’re a startup looking for partners or an established company aiming to expand, these events offer incredible opportunities for collaboration.
Shall we meet?
Are you planning to attend any of these events? Reach out to us – we can’t wait to connect!
Don’t miss out on these amazing mobility events in the last quarter of 2024! Whether you're in Cologne, London, or California, these events offer an unbeatable chance to learn, network, and explore the future of urban transportation.
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