Who would have ever imagined scoots would be the way of the future? Well, it may be a bit early to say scooters will take over. But the scooter industry has no choice but to be taken seriously because the numbers do not lie. In larger cities and metro areas, scooter bubs are appearing on corner blocks. They are becoming more accessible, trendy and a form of transportation for quick routes.
Some may say scooters will never be a big time industry. Some may say its not realists with having scooters as a way of transportation. But that’s what they said about Uber. The scooter is still pretty new. But billions are already being invested into this industry. By 2025, this industry is expected to be worth more than twenty eight billion dollars. You may be wondering what is fueling this industry. Many people are becoming more conscious about the environment. The trend of wanting transportation that does not pollute the environment has caused people to take notice to scooters. Demographic conditions and the desire for an ease of transportation is inspiring the growth of this industry from consumers.
Bird and Lime are two companies making some major news in the scooter industry. Rounds of funding, business sms service provider for marketing, experts have been brought in and countless hours have been poured into startups trying to take over this budding industry. The scooter industry is unique as it combines both the tech worlds and transportation worlds. It is another example of how technology is evolving itself into area of our lives.
Getting started in this industry does not come easy. Honestly, many startups have struggled trying to find success with scooters. The idea sounds good. Even many consumers admit to either have rode on a scooter or would be interested in riding one in the future. Although the demand exists for the market, companies are struggling to turn a profit. This tech transportation industry requires a lot of capital. Startups are going through several rounds of funding to be able to get the financial fuel it needs to survive long term.
These startup scooter companies are bringing in millions annually. That sounds good. But when financial experts break down how much money is going out compared to how much money is coming it, it shows how costly this scooter sector is. Scooter companies have to factor many things into their revenue. Factors like repair, regulatory fees, charging, credit card processing, customer support and insurance. After all of those costs are deducted from a company’s revenue, these companies are left with just a few million. Some startups in this space have not even turned a profit yet.
Could scooters be the next Uber? Possibly. There are a few kinks companies have got to iron out first. But if these startups are able to establish their companies into fully functioning brands, scooters could be the way of travel for the future. Only time will tell what will become of this new sector.