As electric scooters’ trend rises, many are asking themselves whether the scooter is a cheaper option in comparison with traditional transport. The question arising is how to calculate if an e scooter saves money.
Series to analyze on the pros and cons of electric scooters, focusing on the financial perspective: scooters as vehicles of saving, the profit model of the sharing economy, scooters as vehicles of range and cost compared to cars will be done. So, let us dissect it and try to quantify the economic gainers of e-scooters.
Does an Electric Scooter Pay?
A subway rider saves money with a scooter after trying out e-scooters in Hong Kong. Therefore, needless asking if or Is it possible to save money if you own an electric scooter?
However, yes, and here is why:
1. No Gasoline Costs
Electric scooters melt with rechargeable batteries, and they do not require fuel to operate. This is advantageous looking at the fact that the costs of gasoline are always high and can be very volatile at times.
2. Low Maintenance Expenses
Compared to cars and motorcycles, there are very few spare parts in an electric scooter, and therefore, fewer maintenance costs. No consumer ever mentions having their car’s oil changed, exhaust, or expensive engine fixed; their cars merely need battery replacements and tire rotations.
3. Reduced Commuting Costs
A daily ride on an e-scooter is cheaper as compared to using public transport or even for parking, particularly if one‘s workplace is within close proximity of where the e-scooter is stationed. For increasingly typical urban populations, this can amount to hundreds of dollars per year.
4. Affordable Initial Investment
The initial capital cost of an electric scooter is significantly lower compared to what would cost both a car and a motorcycle for personal use, particularly for short distances.
What Are the Margins for E-Scooters?
Companies in the e-scooter sharing area can prove that such devices may be profitable by following this business model.
1. Profit Margins in the Scooter-Sharing Industry
Micromobility executives and other operators like Joyride stated that the gross profit margin in the scooter-sharing industry falls between 27% and 30%. This margin gives the relative position of cost (procurement, overheads, and operating expenses) with respect to incomes realized from rides.
2. Initial Investment
E-scooters for sharing businesses are bought in large numbers, and hence, one sector cost is cheaper than another sector cost.
3. Operating Costs
Because scooters are constantly used, some may develop mechanical problems and therefore require constant checking and minor adjustments.
4. Charging
At the same time, electricity expenses are not high, but the existence of a charging network contributes to expenses.
5. Software and Tracking
The usage is monitored by the GPS and the fleet management tools in order to control the operations of the operators.
6. Revenue Streams
Scooter-sharing businesses work through charging per ride, which starts from $1-$2 for the unlocking of the scooter and then per-minute charges.
Thus, the gross operating profit of at least 30 percent for an individual entering the e-scooter sharing depends on planning, functional placement of the scooters, and operation.
We will learn how to calculate electric scooter range from battery capacity to distance covered and other important factors. Another important characteristic that should be discussed is the distance that an e-scooter can travel before it needs to be recharged, the so-called range. Here’s the formula to calculate it:
Formula: [ Distance in km = Battery power in kWh ÷ Energy used per km in kWh ]
Example:
Battery Capacity: 0.5 kWh (between 2 and 10 kWh for a mid-size e-scooter).
Energy Consumption: 0.025 kWh/km.
Using the formula: [ The range is 20 kilometers and it defined as: Range = Tan (0.5/0.025) ]
It cannot be a steady range, as it depends on such parameters as rider weight, selected terrain, and speed.
How are E-scooters Price-efficient?
Electric scooters are far more cost-effective than traditional gas-powered vehicles.
1. Electricity vs. Gasoline
To recharge an electric scooter battery, it does not take much; it is slightly more economical than refueling a car. For instance, full charges could be at $0.50 and, on the other hand, one car fuel tank at $50.
2. Lower Maintenance Costs
Since electric scooters do not use engines or transmissions, they have far fewer wear-and-tear parts. While servicing the motorcycle requires a lesser amount of money compared to servicing a car, they include brake adjustments and tire replacements, among others.
3. Affordability
The prices of most of the scooters range from $300 to $1500. This is a one-off cost compared to recurrent expenditures of having a car.
Is an E-Scooter Worth It?
Owning an electric scooter is a smart investment for several reasons, and this includes:
1. Cost Savings: A cruiser costs a thousand times cheaper than a car. For example, a moderately priced e-scooter is $600 while a new car is $36,000, making an e-scooter 1/10 as expensive as a car.
2. Environmentally Friendly: To the environmentally conscious rider, personal electric scooters are a perfect form of transport since they do not release pollutants into the surrounding atmosphere.
3. Convenience: They are convenient vehicles for short distance and city use as they do save time, fuel and reduce stress from congestion.
4. Multi-Functional: Besides, e-scooters can travel back and forth, for leisure rides, to discover new places, or when making small trips.
Is an Electric Scooter Cheaper than a Car?
Comparison between the expense incurred while using an electric scooter and those incurred while using a car: The expense incurred while using an electric scooter is way cheaper than those incurred while using a car, particularly on fuel expenses.
Fuel Expenses
- Electric scooter: Usual, they run 100 km on 1 kilowatt hour of energy.
- Car: Average around 10–15 km per a liter of gasoline which is about $1.50 per the liter.
In as much as energy the scooter consumes is equivalent to the same price as that of a car then the latter will cover one-for-49-r in the distance compared to the former.
Overall Saving
With e-scooters having a considerably lower investment or cost of a car, let alone ownership, maintenance, and operating costs. For example:
- Annual Cost for E-Scooter: $300 (including electricity and maintenance).
- Annual Cost for Car: $10,000 (including fuel, insurance, maintenance, and depreciation).
The numbers clearly show that e-scooters are a much cheaper option for short-distance travel.
Conclusion
TThis paper seeks to explore the fact that to determine whether an e-scooter is cheaper means determining the upfront cost, cost of running, and long-term costs and returns.
Electric scooters consume less fuel than cars, and require little or no maintenance thus making them environmentally friendly modes of transport.
For entrants in the scooter-sharing industry, the gross margins of 27-30% show the income model’s feasibility.
Besides, affordability and cost of e-scooters as a business venture are cost-effective as compared to other modes of transport making them ideal for both the commuter and the business persons.
As simple as it might sound, changing from a conventional vehicle to an electric scooter is both economical and eco-friendly.
Therefore, if you want to cut on costs of personal transportation or get into business and launch a very lucrative one, then an innovative solution such as e-scooters is one to consider.