Author Topic: Starting an Electric Bike Business  (Read 5458 times)

alexb2746

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Starting an Electric Bike Business
« on: February 08, 2017, 07:49:05 AM »
I have been bike commuting to work for the past 6 months and recently with an electric bike and completely love it. A co-worker even bought one because I did; both of us bought them online as the bike shops had ridiculously high prices and none really catered to electric bikes.

He brought up the point that it could be a good time to start a business and be an entrepreneur in it; which sparked something in me, because I would love to sell/rent/tour electric bikes and would love to get more people to ride them instead of driving cars. My father-in-law wanted me to help him in a family business in Florida for an Airbnb/entertainment thing, he lives right next to miles of bike trails and beaches. So I am thinking I could take advantage of this with tours and rentals.

Though I would be a first time business owner, likely would have to leave my stable IT job and risk it, though I can rely on my wife as a nurse.

I have looked into Pedego which seems to cater to baby boomers with high quality high priced electric bikes. You can find their information here: http://bit.ly/2k2GaSS it seems like a lot of hand holding and helping which could be good, from what I researched online its like an $75,000 investment, seems riskier but maybe more rewarding if you can sell them (there have been multiple independent stores opened and they are the fastest growing electric bike company)?

I have also looked into rad power bikes rental fleet which seems decent (PDF attached), a lot less risky and I could buy 12 bikes cash. Though I would just integrate it with the mentioned business above, so profit would come from tours/rentals and referrals to buy them online as well as selling them after at least a year.

Does anyone else have experience with this business? Any advice for deciding whether or not to go for this?
« Last Edit: February 08, 2017, 07:50:38 AM by alexb2746 »

BikeFanatic

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Re: Starting an Electric Bike Business
« Reply #1 on: February 08, 2017, 08:04:41 AM »
My experience  using electric bikes for many years is that they do breakdown, and ypu may have to deal with these problems as a desler. I hsve had numerous Ebikes and ebike battery  problems. So you may need to educate yourself on bike and ebike repairs and troubleshooting.  I tjink baby homes want a well built and reliable bike, are Prod ego well built and reliable?
Battery is probably the most expensive part of the bike and battery failures could destroy your bottom line.
Just my 2 cents.

alexb2746

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Re: Starting an Electric Bike Business
« Reply #2 on: February 08, 2017, 08:24:34 AM »
My experience  using electric bikes for many years is that they do breakdown, and ypu may have to deal with these problems as a desler. I hsve had numerous Ebikes and ebike battery  problems. So you may need to educate yourself on bike and ebike repairs and troubleshooting.  I tjink baby homes want a well built and reliable bike, are Prod ego well built and reliable?
Battery is probably the most expensive part of the bike and battery failures could destroy your bottom line.
Just my 2 cents.

What do you mean by breakdown? I think they last as long as a regular bike, yes the battery needs to be replaced roughly every 5 years and maybe less for rentals (These do come with warranties too)? The only other part would be the motor/maybe wires? Though with rentals/tours I would probably cycle them out yearly (sell for discounted price and purchase new ones.)

Prairie Stash

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Re: Starting an Electric Bike Business
« Reply #3 on: February 08, 2017, 12:07:40 PM »
People lease cars, buy monthly gym memberships and maintain numerous health related monthly memberships. Have you considered attempting a monthly lease/rental business? You would be responsible for repairs, people could then rent them monthly. Its a similar idea behind the rideshare programs that some people subscribe to with cars.

How much money/month/bike do you need to make to be successful?

alexb2746

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Re: Starting an Electric Bike Business
« Reply #4 on: February 09, 2017, 07:06:14 AM »
People lease cars, buy monthly gym memberships and maintain numerous health related monthly memberships. Have you considered attempting a monthly lease/rental business? You would be responsible for repairs, people could then rent them monthly. Its a similar idea behind the rideshare programs that some people subscribe to with cars.

How much money/month/bike do you need to make to be successful?

Wow that seems like an amazing idea. Definitely would need a lot of thought of how to go into it. How to handle theft, if they get a flat tire etc...

Well if it were $500 a month, after 12 months that would net 4800, if there were no other costs than purchasing the bike times by 12 bikes, thats almost 60k/year; in my case that is certainly successful. Though after 3 months someone could have just purchased it? I guess the hard part is knowing if there is demand for it or if people would go for it?

It seems some local bike shops rent electric bikes for $300/week, that could be something to (people visiting for vacation).