Ebike rental for guests Boost sales for Airbnb Host

Family holidays in a vineyard on an Ebike

Bicycle touring is the activity of self-indulging  cycling trips for holiday adventure or autonomy rather than sport, commuting or exercise. Touring cancan range from one day trips, to even longer . Tours may be planned by the tourist  guest who wills stay in their rented dwelling place like Airbnb or organised by a holiday business, 

Cycle tourism has grown in popularity in Australia  since the 1980s. This means that traveling by bike is becoming more and more important in terms of both tourism and economy. 

Without a doubt, individual and environmentally friendly mobility concepts have enormous future potential. From a business perspective, there is a lot to be said for promoting a business start-up in this area. In this article, a moving business idea based on this popular means of transport is presented with 'start your own business with an  Ebike rental' . The introduction shows how popular the bicycle actually is in Australia . Basically, the bike rental can be offered as part of the sale or it can be put on a standalone, sustainable business basis. How this can look in concrete terms and what has to be observed is described in this article in a practice-oriented manner.


Business models: what is meant by bike rental ?

Every entrepreneur has to answer this question convincingly or in a potential-oriented way in the business plan. A look at the market shows that two business models can be seen as established:

  1. Electric Bicycle rental for tourists in regions with corresponding demand
  2. Electric Bicycle  rental at publicly accessible self-service stations

The last-mentioned area in particular has experienced enormous growth in recent years. In many inner cities or at train stations, such publicly funded rental stations for bicycles can be seen. With a view to environmental aspects such as the ongoing discussion about fine dust, a sustainable alternative to car traffic should be made usable.

Anyone looking to set up a business in the Electric bicycle rental sector should be clear about which demand they want to meet with which business model. In view of the large providers, the public sector for bicycle rental appears to be a very difficult challenge, especially for a business start-up, especially since investments in technology at several rental stations will have a significant impact. In any case, the currently usable offer must be found on site. A location analysis should also determine whether regional policy plans to invest in this area.

Anyone who wants to become self-employed with a bicycle rental for tourists is dependent on an appropriate functional location. Affiliation to hotels, campsites or beaches / promenades can also be worth considering. This may have to go hand in hand with the willingness to move the centre of one's life in order to start up a business. The business focus must appeal to customers who love to ride a bike but don't want to buy one themselves.


Business start-up with Ebike rental: start your own business on two wheels

Tourist on an ebike contemplating landscape from bridge
  • Analysis of the initial situation
  • Business plan: sit firmly in the business saddle!
  • Marketing: how is business picking up speed?
  • Requirements for becoming self-employed with bike rental
  • Earning money with an Ebike rental?


Analysis of the initial situation

In general, the business idea of ​​'becoming self-employed with bike rental' should be seen in the context of individual mobility concepts. Congested streets in big cities and excessive particulate matter levels show that this is a sustainable concept. In addition, the public network of cycle paths is being expanded in many cities. In the future, we can expect increasing interest among the population, especially since bike rental is already profitable. And don't forget the health factor for the economy: Health costs per person per year could be saved if everyone could ride their bike for 75 minutes a week. This value should also be interesting with a view to companies as possible business customers, in order to keep Airbnb visitors with Ebikes rental  create  fit and happy customer.


Numbers & developments for the business plan

There are basically over 70 million bicycles in Australia . Around 80% of all households have at least one bicycle. The remaining 20% ​​would immediately fall into the potential target group for  rental. The bicycle is therefore very popular as a means of transport. More than a third of the population uses it very regularly as a means of transport. Surveys show that the popularity of the bicycle has risen continuously in recent years. From a demand point of view, this is encouraging news to start your own bike rental business. In addition, one in three states that they want to use the bicycle more often as an alternative means of transport in the future.


Family holidays on an ebike visiting a vineyard

Sit firmly on the saddle for business: business plan for Ebike rental

All the concepts and potentials raised here are to be brought to the point in the business plan in a success-oriented manner . Business start-ups must be able to conclusively explain which business model they will opt for when it comes to bike rental and to what extent this is profitable in the long term. This question or the entire financial part is viewed particularly critically by potential investors. In this respect, it is important to convince with numbers, ideas and strategies in order to be able to raise the necessary capital for corporate financing. It should be borne in mind that simply purchasing high-quality bicycles in significant numbers as a basis for business will consume a lot of resources. Only a very small number of people setting up a business will take everything for a bike rental Can cover equity. However, a high equity base is an important factor in trusting one's own creditworthiness. The basis for success must be laid with the location analysis mentioned above. In any case, the location must be able to offer the prospect of long-term demand for the specific business direction.


Questions for the business plan

In order to achieve a clever strategic positioning and to bring the advantages of this business model closer to potential investors, the following questions can be answered in the business plan for an Ebike rental:

  • Is it possible to occupy a market niche (e.g. special bicycles with particularly flexible conditions)
  • What unique selling points and added value from the customer's point of view can bike rental score over the competition?
  • Are there any market trends that the business model can exploit?
  • What opportunities, but also risks, must appear on the screen?
  • Which sales can be expected and which profit margins are applied?

Ultimately, the business plan must be able to answer one question above all: Why is the business model irresistible from the customer's point of view? Why should customers rent an Ebike here, even if they may already have one? Bicycle rental offers users the opportunity to always have smooth mobility. Having your own bike requires storage space, which is often not available. In addition, time and money have to be spent on maintenance, apart from the sometimes high acquisition costs for a modern bicycle. Against this background, it becomes clear why bike rental can be attractive to customers in terms of costs.


Establishing an Ebike rental: what matters most

In the business plan, one essential main task has to be done: The rental system for bicycles has to be perfectly tailored to usage profiles, from which individual tariffs can be created. Only those who exactly know their target group and their needs will be able to adapt strategically to the existing demand.


 Consider seasonal fluctuations

If you want to focus on bike rental in the tourism sector, when planning your finances you should make sure that business will run significantly better in summer than in the cold winter months. In this respect, it should be considered whether the sales for the whole year can reach a sufficient mean value. Otherwise, depending on the location, the business idea must be placed on a broader basis. Think of a bicycle workshop, as your own bikes have to be serviced regularly anyway. In principle, it is also an option worth considering to integrate rental into a store concept for bicycles. In this respect, it is worth taking a look at the business idea 'start your own business with the help of Ausstech  (Ausstech Electric Bikes ) to throw. The seasonal fluctuations also apply to the other strategic orientation, even if they should not be so important here due to the spontaneous use. On beautiful winter days, one or the other will gladly fall back on the flexible rental offer.


Marketing: how is business going to pick up pace?


In terms of marketing, this business idea must be about making added value tangible for customers! In all marketing activities, the flexibility of bike rental should be the focus: While your own bike always has to be left at the same point, public rental systems offer many more options. And in the case of tourist bike rental, the problem of return does not really arise. Additional services can also be offered for flexible returns. On the Internet, bike rental needs to be given a wide reach on various portals and, above all, with a search engine optimized homepage. In addition, customers should be able to reserve a bike directly online, which should be a big plus for planning in the tourism sector. Anyone who rents electric assisted bicycles in holiday resorts should advertise accordingly in tourist offices or hotels with flyers or posters. Anyone who rents in the public area must effectively stage a corresponding station with advertising. Signs at a greater distance can show that flexible bike rental is available nearby. In general, locations with a lot of walk-in customers are advantageous, so that many potential customers are confronted directly with the advertising. Press releases that are specifically launched and equipped with relevant keywords can also make an important contribution to increasing the awareness of the bike rental business beyond the local area, if necessary. Signs at a greater distance can show that flexible bike rental is available nearby. In general, locations with a lot of walk-in customers are advantageous, so that many potential customers are confronted directly with the advertising. Press releases that are specifically launched and equipped with relevant keywords can also make an important contribution to increasing the awareness of the bike rental business beyond the local area, if necessary. Signs at a greater distance can show that flexible bike rental is available nearby. In general, locations with a lot of walk-in customers are advantageous, so that many potential customers are confronted directly with the advertising. Press releases that are specifically launched and equipped with relevant keywords can also make an important contribution to increasing the awareness of the bike rental company beyond the local area, if necessary.


Check out franchise options or join as an investor?

If you want to set up a bike rental but are afraid to invest too much, you can also check available franchise models. The conditions of individual providers can be understood very quickly with research. The advantage of this option is that you can start right away with a functioning system in the truest sense of the word. However, the sometimes high fees and royalties are disadvantageous. It should also be checked whether it is possible to participate as an investor in a business model. In this already up-and-coming area, start-ups do not necessarily have to start from scratch.


Requirements for becoming self-employed with bike rental

Anyone who wants to rent Electric bicycles must register a business before starting business . Whether evidence needs to be provided or whether a permit is required depends in each individual case on the scope of services. For example, if you want to open a workshop in addition to renting it, you may need to provide evidence of specialist knowledge, as the work has a safety-related impact. In principle, the tax office must also register the activity for tax purposes.

In any case, the rental of Electric bicycles should be legally based on professional contracts on a reliable basis. It should be remembered that Ebike as fixed assets are an important prerequisite for being able to generate sales in the truest sense of the word. It must therefore be clarified for both sides which conditions apply to the rental. Above all, damage or theft should be considered. Economic risks must be minimized as far as possible so as not to endanger the entire business. It is necessary to check which possible damage is covered by which insurance and for which further commercial protection appears to be indispensable. In some scenarios, the tenant's liability insurance takes effect, so that the existence of such a policy can be contractually assumed. It should be checked to what extent it makes sense to have your own commercial bicycle insurance for the business model. The background to this is that ebikes that are to be rented often have a value of well over A$2,000 

Business start-ups should check the actuarial framework conditions very carefully in the planning phase. Because there is no guarantee that liability insurance will cover borrowed items. And in contrast to cars, there is no compulsory insurance for bicycles. A deductible could be contractually agreed, which minimizes financial risks. In addition, tenants will be more careful with the rental bikes.


Earning your own bike rental?

It is difficult to provide general information per month, especially since fluctuations can occur depending on the season. In any case, start-ups have to calculate prices in such a way that after deducting all costs, an appealing profit margin remains. Basically, a high occupancy rate and a lean cost structure are important prerequisites for being able to earn good money with a bike rental. Anyone who wants to know how high the income can be from bike rental should do realistic calculation examples. This work should be done in the business plan anyway.

In the tourism sector, (high) sales can be controlled by giving customers better conditions for a longer rental period. The bikes are used to a greater extent and they generate significant sales. If the average daily price per bicycle is known, a sales forecast for a month can be calculated using the total number of bicycles. If all costs (including imputed ones for maintenance and repairs) are then deducted, start-ups receive the profit.

In public bike rental, the price model is different: Short distances are cheap here, after which the rental prices per hour rise disproportionately. The background is that a quick return should enable flexible availability. Sales forecasts can be made if a realistic average rental period can be expected. If, for example, 20 Ebikes are to be rented and these are rented for an average of 12 hours, a sales forecast can be made with the existing rental price. Incidentally, these sales forecasts are also important in order to carry out the tax registration at the tax office 'correctly'. Those who are overly optimistic will quickly have to pay too much sales tax, which can jeopardize liquidity. For all the necessary euphoria, the figures should be estimated rather cautiously.


Summary for the business idea 'start your own business with Ebike rental'

  1. Current figures on everything to do with Ebikes show that this alternative and health-promoting means of transport is growing in popularity
  2. The majority of Australian are very positive about the possibility of renting bicycles, one in three has already used such a service
  3. In general, there are two basic strategic directions when it comes to bike rental:

Bike rental in tourist areas or public bike rental with automatic stations

  1. In order to compensate for seasonal fluctuations, reserves should be built up in months with high sales. In addition, it must be examined how the sales base of the business model can be set up as broadly as possible
  2. Before the company can start operating, a trade must be registered
  3. In order to minimize financial risks as far as possible, the usable insurance cover for various scenarios (damage or theft) must be clarified.



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