How to start a rental scooter business?

October 26, 2022
October 26, 2022
How to start a rental scooter business?

A new city, covering distances while gazing at the unique infrastructure, a cool breezy wind swaying the hair, taking in the smell of freshly baked goods and flowers on the way – this is the new vacationing concept for tourists these days. Renting a scooter does just that for them. Tourists are now opting for a better, environment-friendly, and cost-saving way to move around the city.

So, if you are a business person and are eyeing to start your venture, you must grab this new opportunity and trend to kick off your rental scooter business. However, you might be thinking about how to start it. No worries; we are here to help you out.

Just read the following tips, and you are set to go. But, before that why it is important that you need to start this business.

What gives the idea an edge?

Why do you even need to start a rental scooter business? The answer is simple; it's COOL – period. But if you look into it, multiple reasons give you an edge. A scooter is good for people who hate traffic; it is cheaper, more experiential, has no fuel charges, and is way more fun. 

A lot better than the conventional mode of transportation. People neither like to be pushed on public transport nor are willing to pay hefty amounts for taxi services. Having electric mobility scooters for rent is a far better option.

Now that you have decided to go for the idea, let's get into the details of starting a rental scooter business.

1. Determining the Target Audience

Your main target audience is tourists. People from all over the world want to gain firsthand experience and feel the essence of the city or place they are visiting. Other locals who want to travel small distances and don't prefer walking or public transport may also opt for your service.

2. Picking a Location

High touristy areas are your preference. It is up to you if you want to set up a physical store for them to rent a scooter. Tourists can visit your store, where you guide them through the rental procedure. 

On the other hand, you can place your e-scooters after every mile in every touristy area, where they can rent them through a website or application.

3. Measuring the Investments & Revenues

Starting a rental scooter business requires a good amount of investment. Even if you are a millionaire, you must decide on a budget and its constraints. 

There are wide varieties of scooters available, and you need to decide which ones to buy.

A single scooter can cost around $300 to $900, based on the type or quality. For starters, buying at least 10 to 12 will cost you $6000 to $7200. You can also find a supplier from countries other than the US, which can help you widen the span of finding better and relatively cheaper options. 

After buying them, getting the scooters insured should be the priority. 

If you opt to set up a shop, it will also add to your cost. Depending on your budget, you can rent or buy a place. The initial investment, including the shop rental and business insurance, will cost you around $10000 to $12000.

The revenues, on the contrary, rest on how much the customer is charged to rent a scooter. Depending on the scooter type, $15 to $50 can be charged per hour. The scooter rental business may be seasonal, but it guarantees your cost coverage. 

Each scooter can at least be used twice a day – even on off-season days. Investing more in the seasonal time will hike up the revenues. On average, the revenue for this business can range from $50000 to $120000 annually.

4. Working Out the Legalities

As serious as it sounds, working out the legalities is crucial to doing business. Here are some things that you need to focus on when starting a scooter rental business:

  • Permit: It is extremely important to check with your city government if starting a scooter rental business is permissible. Every city has different policies and rules for scooter rental businesses, including driving zones, parking facilities, speed limits, age restrictions, etc. it is better to get this information before investing in the business. If you have already done it, don't worry – you can always establish it in another city.
  • Registration: Registering your business as a separate legal entity is not just valid but also important to keep your assets (your house, car, or any other assets in your possession) safe. It keeps them secure if your business gets sued. You can do other business activities like opening a bank account, raising capital, and paying taxes after registering your business.
  • Business License: business license is needed to operate any business. Failure to do so can cause you to pay hefty fines.

5. Designing a Website/App

When everything in this world has an app for it, why wouldn't you? It is as simple as it sounds – if something isn't online, it doesn't exist. Opting for a website/app is not just a formality but an essential part of your business. 

A user-friendly website/app will help customers rent your scooters without any hassle. You won't even need a physical store if your website/app is easily accessible to everyone.

6. Making Other Offerings

Why limit yourself when you can offer more? Apart from renting the scooters hourly, you can also provide your customers with daily and weekly usage offers. You can set your ranges from $65-$75 for renting for a whole day and up to $200-$250 for weekly usage.

The ranges can vary according to the locations and clientele. You can also make special offers to customers who visit the city/country for the second or third time.

7. Marketing Your Brand

Of course, the product and service speak for themselves, but there's no harm in marketing your brand. Since this business revolves around impulsive decisions, your presence has to be bright and eye-catching for people to opt for it instantly. Attractive flyers and branding will do the job to some extent. 

You can partner with other businesses to cater to as many people as possible. Your business will gain much popularity through word-of-mouth promotion; however, you can increase your reach through your social media presence. 


Starting a scooter rental business may be challenging and critical; however, the revenues are guaranteed. You may incur operating costs, but demand will only increase with the new hiking and tourism trend.

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