How to Start a Bike and Scooter Rental Business and Make Money in India
📖 Learning
Why buy a bike or a car when you can rent one? As per research, millennials do not like buying vehicles, especially when Uber and Ola are readily available in the market.
From simple bikes to luxury car rentals, everything is now available in multiple cities. The global rental market for bikes and scooters is projected to grow from $2.5 billion in 2019 to $10.1 billion in 2027.
The rise in demand for emission-free vehicles, stricter emission norms, and the growth in traffic congestion are increasing the demand for economical transportation.
So, if you want to earn money by launching a bike or scooter rental business in your city, this guide will walk you through all the essential steps.
How to Start a Bike and Scooter Rental Business to Earn Money in India
How to Start a Bike and Scooter Rental Business to Earn Money in India
When planning to set up your own bike and scooter rental business to earn money in India, it’s important to understand the step-by-step process you need to follow before launching.
Make a business plan
The first step to setting up your business is a proper business plan. By planning the total idea on pen and paper, not only do you give it life, but you also understand the steps involved in building your dreams into a reality.
The business plan will help you for multiple reasons:
- Talk to banks to get business loans
- Select the proper type of business you want to be a part of (eg, luxury bikes and scooters, second-hand rentals, etc.)
- Locating a good area to set up your business
- Identification of target market and audience
- Set the necessary objectives required to make your business a success
- Apply for the right licenses and registrations
Draw up a Company Summary
Your company summary will detail the specifics of the business. It should help answer questions such as - What is the essence of the product you offer? How does it benefit the customers? It should also contain the details of the type of business you plan to operate.
Here are some kinds of bike and scooter rental businesses:
- City bike rentals: These are perfect for vacation destinations where people will want to explore the city on two-wheelers.
- Rentals for work purposes: Long-term bike renting or leasing is growing in popularity as people are searching for alternatives to cars in bigger cities.
- Premium bike rentals: These offer the experience of a luxury bike ride to niche market customers. These bikes can be rented out for special events like engagements and weddings.
Understand your competitors and find the right target audience
Before you start your marketing campaigns, it is important to understand your competition and the target audience. Your target market will be made up of people who have an active lifestyle and will want to rent a bike or scooter to help them get from one place to another.
It is also important to understand what your target audience wants, and this can be found in their reviews. The next step is to check for competition and find gaps in their marketing style. Try to stay away from locations where there are multiple competitors, as it might be hard to penetrate such a market.
Registrations required to start a bike and scooter rental business
To operate a bike and scooter rental company legally in India you will need to get the correct licenses and registrations.
- GST Registration is important for any business owner in India
- Compliance with the 1997 Bike Renting Scheme and State Government Laws
- ESI Registration
- PF Registration
- Licenses and Registration of all the vehicles you plan to use
Conducting a market analysis
It is important to develop a proper marketing plan from the beginning, as most rental businesses need to have this in place before opening their doors.
But your marketing efforts should be proportionate to your financial and commercial ability to serve customers. You do not want to over-promote your brand and then underdeliver to your customers.
Sakshi Jadhav
Choosing the right business model
One of the biggest decisions you will need to make before starting your bike rental business and earning money from your fleet is choosing the right type of business model. You can choose from the following two:
- The aggregator model: Here, you act as a collector of bikes rather than an owner. You design a portal, and people who want to rent out their bikes or scooters can upload them onto your platform.
The biggest advantage is that you do not need to purchase any bikes, but it also means that you cannot control the types of bikes being rented out. I am running a few minutes late; my previous meeting is running over.
- The owner model: In this model, you can purchase the bikes as per the target market and then rent them out. This way, not only do you control the quality of the fleet but also earn the entire revenue generated.
Bharath
Promoting your Brand
The importance of marketing cannot be overlooked, especially before opening the doors of your rental business. You want to attract as much attention as possible to keep people interested in your products and to spread a positive vibe.
When customers learn of your business and understand how it will help them, then half your work is already done.
Fix your Rental Rates
Setting the right rental rates is crucial if you want to maximize how much money you can earn renting your bike or scooter. Most rentals charge by the day, hour, weekend, and kilometre.
Here is where your competitor research will come in handy. Check how your competitors are charging and how customers react to their policies.
Then you can decide on a pricing strategy that will be designed to encourage customers to hire bikes and scooters for extended periods.
Build a team that can handle the business
When starting your bike and scooter rental business, you will need to have a team on your side to help run the business. These will include:
- Mechanics: To handle the periodic maintenance of the bikes and for emergency support in case of mid-way issues. You can also get a third-party service, but they might not be available whenever you need them.
- Marketing team: To help gain traction, you will need to have a proper marketing team. As marketing is a continuous process, you will need to hire someone full-time. It is best to look for someone who can handle both offline and online marketing for your rental startup.
- Customer support team: To ensure that customers have someone they can talk to or share their grievances with, a customer support team is highly important. This extra service is what can differentiate you from your direct competitors.
So, it is very important to have a support team that can handle customer queries as soon as possible.
Conclusion
To set up and excel in a bike and scooter rental business, not only do you need to understand the market first, but also the needs of your potential customers. You need to properly analyze the market and then come up with a business plan that closes any gaps in the market.
Once you have these and a proper team in place, your business is ready to take off, and you can start making money by renting your bikes and scooters!
Rishita Jain
FAQs
Is bike and scooter rental a profitable business in India?
Yes, the bike and scooter rental business is profitable in India, especially in urban areas and tourist destinations.
What are the licenses required to start a bike rental business in India?
To legally run a bike and scooter rental business in India, you need:
- GST Registration
- Compliance with the 1997 Bike Renting Scheme and respective State Government Laws
- ESI and PF Registration
- Proper registration and commercial licensing of all vehicles
How should I set rental rates for bikes and scooters?
Study your competitors and pricing models (hourly, daily, or per km). Keep your rates competitive while offering discounts for longer rentals.
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