What is an electric bike business?
An e-bike business is a type of business that sells, rents, or services electric bikes. Electric bikes, or e-bikes, are bicycles that have an electric motor that assists the rider’s pedaling. E-bikes can have different levels of power and speed, depending on the battery and the controller.
Why start an e-bike business?
Starting an e-bike business can be a rewarding and profitable venture for entrepreneurs who are passionate about cycling, sustainability, and innovation. E-bikes are becoming more popular and accessible around the world, as they offer many benefits to consumers, such as:
- Saving money on gas, parking, and maintenance.
- Reducing carbon emissions and air pollution.
- Improving physical and mental health.
- Having fun and enjoying the outdoors.
The market for e-bikes
The global e-bike market growth
According to a report by Grand View Research, the global e-bike market size was valued at USD 23.89 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 11.6% from 2020 to 2027. The report attributes this growth to factors such as:
- The increasing demand for eco-friendly transportation alternatives.
- The rising awareness of the health benefits of cycling.
- The technological advancements and innovations in e-bike design and performance.
- The supportive government policies and initiatives to promote e-bike adoption.
The US e-bike market rapid growth
The US e-bike market is also experiencing rapid growth, especially in the wake of the COVID-19 pandemic. According to a report by NPD Group, the US e-bike sales increased by 145% in 2020 compared to 2019. The report cites reasons such as:
- The shift in consumer behavior and preferences due to the pandemic, such as avoiding public transportation, working from home, and seeking outdoor recreation.
- The expansion of the e-bike product range and availability in the US market, catering to different segments and needs of consumers.
- The improvement of the e-bike infrastructure and safety in the US cities, such as bike lanes, trails, and regulations.
How to start an e-bike business
Choose a business model
There are different ways to run an e-bike business, such as selling e-bikes, renting e-bikes, offering e-bike tours, or providing e-bike repair and maintenance services. You must decide which suits your skills, budget, and target market. You can also combine different models to diversify your income streams.
Find a supplier
Once you have chosen your business model, you need to find a reliable supplier of e-bikes and accessories. You can either buy from a local distributor or import from overseas. You need to compare the prices, quality, warranty, and delivery options of different suppliers and choose the one that meets your needs and standards.
Set up a website or storefront
Depending on your business model, you may need to set up a website or a physical storefront to showcase your products and services. A website can help you reach a wider audience and provide information about your business. A storefront can help you attract local customers and display your e-bikes. You need to make sure that your website or storefront is attractive, user-friendly, and secure.
Market your business
The last step is to promote your business and attract customers. You can use various marketing strategies, such as social media, online advertising, flyers, referrals, or partnerships with other businesses. You need to identify your target market and tailor your marketing messages to their needs and preferences.
How Much Do I Need to Start?
The amount of money you need to start an ebike business depends on several factors, such as:
- The type of ebike business you want to start
- The size and scale of your operation
- The location and market demand for your service
- The legal and regulatory requirements for your business
- The marketing and promotion strategies for your business
To give you a rough idea, here are some estimates of the startup costs for each type of electric bike business:
Ebike rental
You will need at least $10,000 to $20,000 to buy a fleet of 10 to 20 e-bikes, depending on the quality and features of the e-bikes. You will also need to pay for the rent or lease of a location to store and charge the ebikes, which can range from $500 to $2,000 per month. Additionally, you will need to invest in a booking system, insurance, security, and maintenance costs.
E-bike sales
You will need at least $20,000 to $50,000 to buy an inventory of 50 to 100 ebikes, depending on the variety and price of the ebikes. You will also need to pay for the rent or lease of a showroom or an online store, which can range from $1,000 to $5,000 per month. Additionally, you will need to invest in delivery service, marketing, customer service, and warranty costs.
Ebike service
You will need at least $5,000 to $10,000 to set up a workshop with tools and spare parts. You will also need to pay for the rent or lease of a location for your workshop, which can range from $500 to $2,000 per month. Additionally, you will need to invest in training, certification, insurance, and marketing costs.
As you can see, starting an e-bike business can be profitable if you have a passion for ebikes and a good business plan. However, it also requires a significant amount of capital and planning. Therefore, before you start your electric bike business, do some market research, create a budget and cash flow projection, and secure funding from various sources such as personal savings, loans, grants, or investors.
The challenges of starting an e-bike business
Starting an e-bike business has its challenges. Some of the common obstacles that you may face are:
Competition from other e-bike businesses
The e-bike industry is growing rapidly, and there are many competitors in the market. You need to differentiate yourself from them by offering unique products or services, providing excellent customer service, or having a strong brand identity.
The need to educate consumers about e-bikes
Many people still need to learn about e-bikes and their benefits. You need to educate them about how e-bikes work, how they can save money and time, improve their health and fitness, and reduce their environmental impact.
The need to comply with regulations
E-bikes are subject to different regulations depending on the country or state where you operate. You need to be aware of the laws and rules that apply to your business, such as licensing, registration, insurance, safety standards, speed limits, or age restrictions.
The benefits of starting an e-bike business
Despite the challenges, starting an e-bike business can also bring you many benefits. Some of the advantages that you can enjoy are:
The potential for high profits
E-bikes are in high demand and have a high-profit margin. You can earn money by selling or renting e-bikes, charging fees for tours or services, or selling accessories or parts.
The opportunity to help people live healthier and more sustainable lifestyles
E-bikes can help people get more exercise, reduce stress, have fun, and connect with nature. E-bikes can also help people save fuel costs, reduce greenhouse gas emissions, and avoid traffic congestion.
The satisfaction of running your own business
Starting an e-bike business can give you the freedom and flexibility to work on your own terms, pursue your passion, and achieve your goals.
Real-life Successful Electric Bike Business Startups
Juiced Bikes
Juiced Bikes is a San Diego-based company that specializes in high-performance electric bikes. The founder, Tora Harris, is a former Olympic athlete passionate about engineering and innovation. He started Juiced Bikes in 2009 as a hobby project, building custom electric bikes for himself and his friends. He soon realized a huge demand for powerful and affordable electric bikes that could compete with gas-powered motorcycles and cars.
Juiced Bikes has grown rapidly since then, thanks to its focus on customer feedback, product development, and marketing. The company has launched several successful models, such as the Scorpion, the HyperScorpion, the RipCurrent, and the CrossCurrent. Juiced Bikes has also expanded its distribution network to Canada, Europe, and Australia. The company aims to make electric bikes accessible and fun for everyone.
Radpower
Radpower is a Seattle-based company founded in 2007 by Mike Radenbaugh, who built his first electric bike to commute to school as a teenager. Since then, Radpower has become one of North America’s largest electric bike brands, with a wide range of models for different purposes and budgets. Radpower bikes are known for their high-quality components, powerful motors, long-range batteries, and affordable prices. Radpower also offers excellent customer service, support, and a community of loyal fans and riders.
Super73
Super73 is a California-based company founded in 2016 by LeGrand Crewse, who wanted to create a new type of electric bike that combined the style and fun of a motorcycle with the convenience and eco-friendliness of a bicycle. Super73 bikes are inspired by vintage motorcycles and feature distinctive designs, fat tires, comfortable seats, and customizable accessories. Super73 bikes are also known for their high-performance motors, long-lasting batteries, and smart features like GPS tracking and Bluetooth connectivity. Super73 has attracted many celebrities and influencers as customers and collaborators, such as Will Smith, Justin Bieber, and Casey Neistat.
Free Key Takeaways from these successful electric bike businesses
Find your niche
Radpower and Super73 have found unique selling points and target markets in the electric bike industry. Radpower offers versatile and practical bikes for everyday use, while Super73 offers stylish and fun bikes for leisure and adventure. By finding your niche, you can differentiate yourself from the competition and appeal to a specific group of customers.
Innovate and improve
Both Radpower and Super73 have constantly innovated and improved their products and services to meet their customers’ changing needs and preferences. Radpower has introduced new models and features like cargo bikes, folding bikes, and integrated lights. Super73 has introduced new models and features, such as suspension forks, hydraulic brakes, and color displays. By innovating and improving, you can keep your customers satisfied and loyal and attract new customers.
Build a brand and a community
Both Radpower and Super73 have built strong brands and communities around their products. Radpower has created a recognizable logo, slogan, website, blog, social media accounts, YouTube channel, podcast, newsletter, and events to communicate with its customers and fans. Super73 has created a recognizable logo, slogan, website, blog, social media accounts, YouTube channel, newsletter, and events to communicate with its customers and fans. By building a brand and a community, you can increase your visibility and credibility in the market and create a loyal fan base.
These are just some examples of successful electric bike business startups you can learn from for your own electric bike business. Of course, many other factors contribute to success, such as having a good business plan, finding reliable suppliers and partners, managing your finances and operations efficiently, marketing your products effectively, etc.
Final Thoughts
Starting an electric bike business can be a great way to make a difference and earn a good living. If you are passionate about cycling, sustainability, and innovation, then starting an e-bike business may be the perfect opportunity.
Need help with your electric bike business? Contact us today.
