Roadways in America have seen a huge rise in the amount of traffic congestion in its major cities within the last few years, which have impacted commuters and travelers significantly. With longer daily commutes for drivers, short trips taking much longer than they should, and accidents occurring more frequently, a solution for traffic congestion is long overdue. That is where micromobility steps in.
A proposed solution for these issues is the use of micromobility options to lower the number of single-driver cars on the road. Micromobility refers to the smaller, and often more efficient, options, like bikes and scooters, that can work for shorter trips and short commutes to work. With the rise of these options in the last few years, many want to start a micromobility business of their own.
If you want to get in on this growing business, but do not know exactly where to start, there are a few things that you should know about. From learning about the pertinent regulations to getting funding for the creation of prototypes, there is much information to learn about this kind of business. Once you do, though, you may be in for a profitable venture with the increasing popularity of micromobility options.
Like any other type of business, you want to do your research ahead of time and look into all the details of the industry first. Knowing the obstacles that you will face to be successful will help you plan out how you will go about starting your business. Also, you should look into the successes and failures of established micromobility companies and learn from their mistakes.
In the early stages of these bike and scooter companies, there was an issue with misuse and theft of property. However, companies have already found some better ways to prevent theft and offer better and safer use to customers. Take what these other businesses have learned, and implement similar strategies in your business to sidestep those early missteps. Doing lots of research into the industry and the evolution of it can only help you.
Building a Business Plan
This is perhaps the biggest part of the process of starting a micromobility company. Knowing how you will start the company and where you will get capital from will determine how long it will take and what type of products you can start with. Having a formal business plan laid out will be something concrete that you can show to investors so you are able to raise the money you need to get things rolling.
Planning a roll-out date, choosing the materials you will use for the prototypes, and having a design for the bikes or scooters you want to have available will all help you start off in a much better place. Plus, if you have taken into account the issues that bike and scooter designs had from previous companies, you will have an innovative product to showcase to potential investors that can get you more start-up money.
Acquiring Liability Insurance
One other consideration for your business should be the potential risks of people riding these smaller vehicles on busy city streets and sidewalks. With any micromobility company, there needs to be protection in the case of rider injuries from falls or collisions. With riders often going at fairly high speeds and either riding on rocky streets or sidewalks, there could be various safety concerns that present a liability issue.
Insurance for your business can help protect you from being liable in cases where there is an accident that is not due to any malfunction or defect of your products. There could be many issues that affect the rider while using your company bikes or scooters, like weather conditions, riding abilities, pedestrians, and other vehicles causing a crash. Because bikes and scooters are not covered like cars, they could cause worse injuries.
However, being fully insured can not only help your business by covering the costs of repairs, but will also cover the medical expenses of the rider involved in the accident. Whether this accident is just a small tumble onto the grass with little injury or a serious collision with another rider, you can cover all costs so that everyone is taken care of.
Knowing the Regulations
With these micromobility methods of transportation becoming popular, cities are now making regulations that pertain particularly to these bikes and scooters. Depending on where you want to start your business, which is typically centralized in one area to start with, you need to know what the regulations are for that city. Some areas only allow a certain number of scooters, while others require permission to put out any at all.
Going against or violating these rules can cost you lots of money in hefty fines and eat away at your profits while you are still trying to get your footing in the business. So, make sure you are well aware of all regulations in whatever city you want to start in so you will not run into any of these problems.
Speak to Experienced Insurance Brokers
Insurance for your business can help protect you from being liable in cases where there is an accident that is not due to any malfunction or defect of your products. If you are planning on operating a micromobility business, consider applying for insurance. Speak to the experienced insurance brokers at MFE Insurance for more information about micromobility insurance.