Arguably bike sharing service is the most significant and surprising belly-ups in the industry. More and more bike rental shops are coming up each day, enticed and allured by the huge prospects that it promises. However, whether or not it remains the same and continues to provide the same benefits and returns are something that you may be concerned of. Well, this is not a ‘wait and see’ approach as this specific business is surely taking shape and is here to stay for a long, long time.
Several factors have contributed to this, and the effects of the rise in demand for bikes and bike rental business have affected the environment as well as the economy in a positive manner. Such impact is surely long lasting as the concern for environmental issues as well as the need of a stable economy is ever growing and primary concern.
Therefore, if you are into bike rental business already or are planning to start up one, you are on the right track and will surely make more than enough for a living. However, if you want to make the most out of it, there are a few things that you should be aware of. Such knowledge will help you to run your business smoothly and plan your moves well in advance.
The prospects of it
There is no reason to believe that every bike shop in every city, state or country will be successful. Several instances will corroborate that it is sensitive to different factors that determine its prospects.
Effective management of the business and administration, funds and operation, rental strategy and several other factors will ensure the success of your bike rental business. Drawbacks and lacunas may result in a public fiasco with lots of finger pointing, disappointment and ethics violations as well. All these are detrimental for business and will certainly deteriorate the business reputation, growth and even pose a danger for its sheer existence.
Even the most bike-friendly cities have failed more often than not leaving people with plenty of thoughts and elements to surmise. The factors that may fail in this industry include:
- Political bickering
- Poor climate
- Insufficient biking infrastructure
- Expansion delays
- Mandatory laws and regulations and much more.
Given such a situation it is natural to be apprehensive and seek an answer to the common question that may also come up in your mind: what does it foretell about the future of bike sharing business and what is the chances of offering Unlimited Biking opportunity to people and if there is any, then for how long?
Looking at the immediate future
You may feel when you look at the immediate future of bike rental business that it is very bleak. However, when you take a deeper look into it, you will have your doubts clear looking at the bigger and brighter picture of bike rental business.
- You will notice the ongoing expansion of the systems which is a testament to its possibilities and prospects in creating more opportunities.
- Add to that the fact that several urban cycling routes are being designed and created adds to the positive effect of biking and bike sharing ensuring success and longevity of the business.
- Another significant factor to notice is that this rise in demand for biking service and tours are not limited to the dry and busy cities. It is also seen even in rain-soaked areas where traffic is not as high as the urban areas.
All these factors have provided high hopes to people who want to start a bike rental business with newer and better biking programs and trails released.
If you look even further down the road, you will, however, see those significant indicators of the presumable and sometimes visible challenges that are continuously mounting. This is more profound in the privately subsidized and publicly operated bike sharing systems.
One such challenge is the cycling boom that is underway in China giving rise to the ongoing expansion of the e-bike market all over the world. Therefore, it is time to take stock of matters as well as these emerging trends in the world of bike rental. This will ensure your survival especially when a few of the tech firms are contesting for industry disruptor dominance.
The pattern unfolded
As it unfolds, you will see that there is a clear and distinct pattern after all. If this pattern holds then you are guaranteed to see a lot more of such challenges and effects in the years to come.
One such effect is the Ofo effect which is reasonably touted as the Uber of the bike industry. These yellow Ofo bikes are putting on substantial impact and force on the two-wheeler market that stretches to almost all countries of the world. With the western expansion on the cards, this effect will slowly but surely take over the bike rental market. Bike-friendly Cambridge and Stanford University have pointed out a few facts that are alarming as well as useful for the users. These are:
- These bikes are impressively affordable
- The most useful feature of these bikes is that it can be unlocked remotely and
- These do not even require a docking station.
All these facts indicate and with enough reason that the Ofo appeal will be significant in the coming years to both riders for Unlimited Biking as well as to the cities that are strapped and struggling for cash.
The direct competition
These trademark and affordable bicycles are providing direct competition with the existing bike rental system in different cities. Though there is staunch resistance against such infiltration from the local officials, a suitable resolution and alternative are still awaited.
It means that such conflicts will result in the inevitable tensions that loom ahead of the bike shares plagued by the smaller and the more supple private startups.
Apart from the regulatory hurdles, there are a few operational pitfalls as well such as rampant theft and littered with bikes in a low foot traffic area. With the cost of a ride to the minimum, it is to be seen whether the model remains sustainable for long.