How profitable is scooter sharing business?

How profitable is scooter sharing business?

The mobile sharing industry is projected to grow at a rapid rate over the next several years. The economic shift towards micro mobility has shown that bike and scooter use is going to grow from USD $2.5 billion in 2019 to USD $10.1 billion by 2027. With an increasing demand for affordable mobility services, industry leaders are making adjustments to their financial models to accommodate changing regulations, as well as, growing production costs.

We put together a breakdown of the expenses that are currently going in to establishing a profitable MaaS company along with some other considerations to keep in mind.

What are the current pricing levels for leaders in Scooter and Bike Sharing?

The pricing levels for different services being offered around the world vary based upon initial upfront costs, cost per allotted time and total ride duration. These prices are also subject to change depending on the regulatory requirements of each location.

Scooter sharing:

 

 

Bike sharing:

 

 

At ATOM Mobility we have a specific calculation to determine the total income a scooter or bike sharing service makes based on ride time and pricing fees. This allows adjustments to be made for the different price levels each company offers.

Income Equation: (Unlock Fee + (Average Ride Time X Minutes)) = x

x = Average Price per Ride

How does vehicle ridership impact the financial model?

Ridership is impacted by a multitude of factors, including availability to travel lanes, density of charging/docking stations, level of integration within the overall transportation network, along with the extent of rider outreach and vendor education. Vehicle use rates tend to increase based on volume of available scooters/bikes and ease of access to stations. The systems with larger fleets, as well as wider spread sharing infrastructure tend to experience higher ridership.

According to research conducted by the National Association of City Transportation Officials, scooters are making up to two times more rides per vehicle per day compared to bikes. Bike services complete anywhere from 0.5 to 2.5 rides per day at an average of 1, with trends showing a shift away from traditional pedal bicycles as the interest in e-vehicles continues to grow.

 

Image source: nacto.org

 

Image source: nacto.org

The region where services are being offered can also influence ridership. Across our partners at ATOM Mobility for scooters, we are seeing from 1.8 to even 5 rides per vehicle per day, with even higher rates in colder regions where the proper infrastructure is in place.

 

Image source: City of Chicago, E-scooter Pilot Evaluation

 

Image source: City of Chicago, E-scooter Pilot Evaluation 

An evaluation of the City of Chicago’s E-scooter pilot program found that over time the number of trips per day decreased from an average of 3.7 to 2.5. This aligns with the seasonality of mobility vehicles, which has been proven to impact ridership. Our research found that there can be decreases between 30 to 50 percent during the off-season.

The average rides per day you can count on for bike sharing services is 0.5 to 2.5, and 1.8 to 5 for scooter sharing services.

What additional factors need to be taken into consideration?

Once we have determined how many rides are being taken and the average price, we can calculate the average income per vehicle per month and outline cost positions. To begin growing revenue, mobility companies need to determine ways to extend the lifespan of their vehicles or off-set the costs once the limit is met. These factors are a major component in developing a successful financial model. In addition, it’s important to review the other expenses that impact vehicle maintenance and usage when constructing an accurate forecast.

Seasonality

Seasonality refers to the time of year a service operates as a result of environmental or weather factors. For mobility services, the usage season usually begins when the average temperature in a month is +10 Celsius or more.

Rides Per Vehicle Per Day

The number of rides each vehicle is taking in a day will impact both revenue but also maintenance and lifespan costs.

Rides

The rate for each ride will need to be considered when developing an overall financial plan for a company.

Maintenance Costs (ex. 13 percent of cost per ride)

Maintenance of the vehicle fleets is required and may vary depending on usage, as well as vehicle model.

Charging Costs (ex. 21 percent of cost per ride)

Whether the fleet uses docking stations or offers free floating services, the cost of charging the vehicles is necessary for continued use.

Bank Commission (ex. 3 percent cost per ride)

This includes any of the banking fees that are acquired.

Marketing (ex. 4 percent cost per ride)

Promoting the services being offered is an essential expense for business growth and expansion within the market.

Customer Support (ex. 5 percent cost per ride)

Most mobility services are offered through mobile apps that require regular support from customer service representatives to resolve customer inquiries and help with reputation management for the company.

IT System Support (ex. 5 percent cost per ride)

These services include IoT systems, sim cards, data, software and other technological requirements needed for the vehicles to operate.

Additional Costs (ex. 3 percent cost per ride)

Mobility companies like any other vehicle service are subject to additional costs such as insurance, city permits and/or other resources.

Our Excel-based Model

To help determine the overall impact of fluctuating costs for scooter and bike services, we developed a financial model that breaks down costs based on a percentage. Through this Excel-based Model we are able to maintain a proportionate evaluation of the expenses for each service.

 

source: ATOM Mobility

 

source: ATOM Mobility

To make calculations we assume an average ride time of 20 minutes then apply that to our Excel-based Model. Costs are shown as a percent from the ride price. Since cost and prices differ country by country, this model allows for the proportions to remain the same. For accurate forecast planning, we recommend using the average of two to four rides per vehicle per day on a period of wholesale. To learn more about our model, please email us.

Where do we go from here?

Mobility as a service is expected to continue growing as additional opportunities for expansion and profitability open in the market. At ATOM Mobility, we want to help your business thrive in the exciting new world of transportation services. There has not been a better time to join other industry leaders than right now. Reach out to us today so we can start building for the future, starting with our scooter sharing software.

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
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.

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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:

  1. Log in to the ATOM Mobility platform, and head to the Fleet Maintenance section under “More.”
  2. 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.
  3. 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:

  1. 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.
  2. 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.
  3. 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.

Dedicated fleet manager app

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:

  1. Select your trigger: Choose between kilometers, hours, ride count, or ratings, based on what matters most to your fleet.
  2. Define your task requirements: Each task is customizable, so you can specify different needs depending on the type of vehicle or its usage.
  3. 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
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💡

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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

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

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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