How can you make the most of industry growth, and properly fund your eBike business?
We get it. You're pushed for time - run-off-your-feet-busy - and yet you don't want to let the opportunity of sudden eBike and eScooter growth pass you by.
Don't panic!
We have put together a guide chock-full of insights to help you make the most of the eScooter and eBike boom.
So what’s the latest?
eMobility - including eBikes and eScooters - is an exciting and growing area. A recent report by McKinsey estimated that the European market alone will be worth > $100 billion by 2030. Within the UK alone, regulatory changes are speeding this future to become an exciting reality.
Although using private eScooters on roads is still illegal in Great Britain, the good news is that for the first time ever, from the 4th of July rental eScooters were made legal.
Even better, based on evidence from our friends in Europe, it seems that eScooters will become a preferred method of personal transport. When eScooters were introduced in Finland earlier this year, 41% of respondents to a survey said they had taken a scooter instead of a taxi or a private car. In addition, almost one in five commuters said they had used an eScooter for a business trip.
Similarly, eBikes are also taking the market by storm. It is expected that there will be around 300 million in circulation worldwide by 2023 - a 50% increase from 2019. If you’re wondering which segment to be targeting, city/urban eBikes are dominating the market, with around 88% of eBikes being pedal-assisted compared to throttle-assisted.
eBikes and eScooters are not just for gadget-lovers, and are here to stay. A study within Munich estimated that privately-owned and shared eMobility travel options will account for up to 30% of trips made by 2030, eclipsing the projected 10% made by taxis, car rentals and ride sharing.
It is clear that the opportunity here is huge. Below are 5 key steps to ensure you capitalise on this growth.
5 steps for you to win!
1. No stock? No problem
As consumer demand for eBikes and eScooters has increased exponentially, many retailers have found it increasingly difficult to access stock from manufacturers. Moreover, cashflow problems for smaller retailers have left them feeling vulnerable at the hands of larger stockists.
However, don’t let the opportunity to sign up a keen customer slide by. Install a ‘back-in-stock’ plugin to both capture their information and keep their interest, notifying them when their desired product is available.
This back-in-stock plugin from Shopify is well worth the investment: https://apps.shopify.com/back-in-stock
By gaining customer trust and building loyalty, you will also gain crucial insight on what products are most in-demand. Knowledge is power!
2. Don’t let the eCommerce surge pass you by
With people searching for safer alternatives to public transport, consumers have turned their attention to eMobility. Reach out to potential new customers now whilst they have time to consider the money-saving, health-benefiting (and fun!) addition of an eBike or eScooter. Sure, they want to try before they buy, but after utilising a rental service from you, consumers are then much more likely to invest in a device longer-term - double win!
3. Lean into climate/money saving benefits
Use the benefits of eMobility to your advantage. Have clear messaging explaining the environmental benefits of using eBikes and eScooters compared to other forms of transport. This messaging will be particularly effective towards the Generation Z (people who are 25 years old and under) who are the early adopters of new trend-setting, C02-reducing tech. For the more mature customers consider emphasising the cost- and time-savings that come from not being stuck in traffic.
4. Be Prepared for Future Regulation
Keep up to date with regulation changes within the UK concerning eBikes and eScooters. It is very likely that regulations will change to make privately owned eScooters legal on roads in Great Britain. However, it is likely they will be classed as a motor vehicle, requiring a provisional driver's license and insurance to operate. How can you use this knowledge to your benefit? Perhaps consider creating partnerships with insurers and regulators ahead of time. Position yourself as a thought-leader in your field. Any questions you have, your customers will have. Make sure they go to you for the answers.
5. Use Funding as your Foundation for Future
Fund your future. It's as simple as that. Always be aware of your funding opportunities so you are ready to scale, scale, scale when demand surges. It's been a busy period over these past few months for the eMobility industry as a result of the pandemic, which has shown how well-stocked and well-prepped eBike and eScooter retailers can see their profits soar during times of difficulty. If you need funds to get more stock, don't be afraid of the investment. A BCG report outlines the importance of having a fund "war chest" readily available. Don't bring a knife to a gun fight!
We hope you find the above useful. If this has gotten your business juices flowing and you want to discuss how to fund your company, then give us a call.
Sources:
- https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/micromobility-industry-progress-and-a-closer-look-at-the-case-of-munich
- https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/micromobilitys-15000-mile-checkup
- https://www.bcg.com/en-gb/publications/2019/promise-pitfalls-e-scooter-sharing.aspx
- https://www.mordorintelligence.com/industry-reports/e-bike-market
- https://www2.deloitte.com/content/dam/insights/us/articles/722835_tmt-predictions-2020/DI_TMT-Prediction-2020.pdf
