How much capital do you need to start your own shared mobility business?
June 28, 2023
min. read
As shared mobility continues to experience rapid growth – projected to generate up to $1 trillion in consumer spending by 2030 – it's no wonder that entrepreneurs are drawn to explore opportunities in this thriving market.
However, despite the optimistic market outlook, the shared mobility industry doesn't provide a magic shortcut to massive and instant returns on investment – despite what some players in the industry might claim. In this blog post, we'll offer a realistic and experienced-based assessment of the investment needed to get a shared mobility venture off the ground.
We will explore how much capital you need to kickstart your own shared mobility business. With experience in supporting over 100 entrepreneurs worldwide, ATOM Mobility is in a good position to understand the financial details.
We'll discuss the essential expenses involved, including vehicles, software, insurance, and operational costs – the aim is to help you make informed decisions and kickstart your entrepreneurial journey with confidence.
Vehicle costs: how much will you pay?
The most significant cost in starting a shared mobility business comes from getting the vehicles.
Here's what you can expect to pay for a single vehicle:
- Scooters: 750-1000 EUR
- E-bikes: 1300-2500 EUR
- Mopeds: 2000-4000 EUR
- Cars: 12000-20000 EUR
Considering the higher costs associated with vehicles like mopeds and cars, leasing is also a viable option. However, securing leasing partnerships is more challenging for operators without an established business.
The choice of vehicles will ultimately depend on your business model – whether you want to provide affordable or high-end options. For instance, if you opt for top-of-the-line scooters from brands like Segway and Äike, expect to pay over 1000 EUR per vehicle. On the flip side, you can find scooters as low as 400 EUR on the Chinese market, but such a price tag comes with its own set of risks.
Optimal starting fleet size for scooter-sharing businesses
Assuming you've made your decision on the model and brand, the next question is: how many vehicles should you buy? What's the ideal fleet size to start with?
We will focus on scooters – with their affordable price tag, they have become a favored choice for those looking to venture into the shared mobility industry.
Based on what we've seen, operators kickstart their ventures with fleets of different sizes. Some start with a humble fleet of 20 scooters in their first season and then steadily grow to over 100 vehicles in the following seasons, even diversifying into cars and other modes of transportation.
However, starting with a larger fleet offers distinct advantages. Having a bigger fleet means more people will notice your brand, leading to faster adoption of shared mobility within the local community. In other words – a larger fleet speeds up the process of making shared mobility a part of people's everyday commuting routines.
Another crucial point is that operating costs remain relatively consistent for a fleet of up to 200 vehicles. Beyond that, you'll likely need to expand your team, acquire more vans, secure a larger warehouse, and hire an additional technician. But, if you're starting out small, 20 vehicles instead of 100-200 won't lead to significant cost savings in operating expenses. Therefore, it's more cost-effective to begin with a larger number of vehicles from the outset.
Maintenance and insurance
Maintenance costs are also an important consideration. On average, around 10-15% of your fleet will require ongoing maintenance, depending on the brand and model of the vehicles. With a smaller fleet of 20 scooters, it's statistically likely that 2-3 units will be undergoing repairs at any given time. In case your fleet experiences a series of unfortunate incidents, this percentage can quickly escalate, leading to a decrease in the number of scooters generating revenue.
Securing third-party public liability insurance for smaller fleets, which is required by law to protect pedestrians and riders in the event of accidents, can be a challenging task. No matter the fleet size, operators are required to pay an annual premium. This means that smaller fleets, like those with only 20 scooters, could end up paying the same premium as fleets with 150 scooters. For a smaller business, this expense can be quite prohibitive and difficult to manage. Thus, insurance costs are another reason to consider starting with a bigger fleet.
On average, the insurance costs around 8 EUR per scooter per month (paid annually) for fleets ranging from 100 to 200 scooters. These costs may vary depending on the specific coverage requirements set by local authorities.
Aim for 100 scooters – or 50 if you're low on cash
If we take into account brand visibility, maintenance, and insurance, it’s advisable for new operators to aim for a fleet size of at least 50 scooters. It’s a budget-friendly choice, especially in a location with strong market demand. A fleet of this size can also serve as a market test run.
However, for a more robust start, an ideal fleet size would be 100 scooters. As we mentioned earlier, the operating costs for both 50 and 100 vehicles would be more or less the same. However, opting for 100 vehicles instead of 50 would result in double the revenue. This boost in revenue would make it easier to sustain and expand the business. Having more vehicles would also contribute to better brand visibility in the long run.
Shared mobility software costs and considerations
Once you've got the fleet sorted, the next step is to get your hands on some software.
When it comes to shaping your brand identity, the software you use is just as crucial as the vehicles you offer. Having a top-notch fleet is great, but it won't make a difference if you neglect the software side of your shared mobility service. You want users to easily find, book, and pay for your rides without any trouble.
When it comes to white-label software pricing, it usually involves a one-time setup fee plus a monthly subscription fee based on the number of vehicles – or a dynamic pricing model per usage.
The setup fees for white-label software are typically between 4-10k EUR, depending on the provider and features. The monthly fees will vary based on fleet size or usage.
ATOM Mobility white-label software offers a wide choice of setup options, catering to fleets of all sizes, starting from the smallest and going all the way up to 5k+ vehicles. There is also a special plan for those who want to dip their toes in the water with 20 or fewer vehicles, which doesn’t require a setup fee. It's a great way to test the market and get started without breaking the bank.
Starting your shared mobility venture with 70k
Now that we've got the basics covered, let's crunch some numbers and calculate the amount of money you'll need to kickstart your scooter-sharing business.
Taking into account the costs of vehicles, software, insurance, and other expenses, we're looking at 70,000 EUR.
Here's what you'll need to kickstart your business and keep it running for at least one season:
- 40k for buying 50 scooters
- 10k to procure and maintain software for the season
- 7-10k for insurance coverage
- 5k for a warehouse
- 5k for renting a van
On top of that, you need to consider the ongoing operating costs, which will fluctuate based on the size of your fleet. If you have a fleet of 50-150 scooters, it can be efficiently managed by two owners – or one owner and a couple of part-time employees. The expense of charging the vehicles will depend on the local prices in your area.
So, with around 70k in your pocket, you'll have a decent budget to make things happen in the first year. You can prove your concept, test the market, and learn the ropes along the way. And once you've got a solid foundation, scaling up in the second year becomes a lot easier. Investors will feel more confident jumping on board when they see that your business model is actually viable.
Of course, the 70k figure is not set in stone. The actual expenses will vary based on your location and your willingness to take on additional risks. We've had operators who achieved success with just half that budget – but their journey was certainly more nerve-wracking as a result.
With our suggested budget, you'll also have some breathing space for trial and error as you kick off your venture. This kind of money allows for a smoother and less stressful launch – also increasing the chances of steady growth in the next season.
If you're interested in starting your own shared mobility venture, join our ATOM Academy for FREE to learn more and see if it's the right business for you.
If you'd like to explore the software costs in detail, schedule a demo with our team today.
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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