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Feasibility Study for an Electric Bike Rental Project
Feasibility Study for an Electric Bike Rental Project
The electric bike rental project is a modern and innovative initiative aligned with the sustainability and smart urban transformation trends in the Kingdom of Saudi Arabia.
The project relies on providing electric bikes that can be rented through a smart electronic application, allowing users to locate nearby bikes, rent them for a specified period, and pay via easy and secure electronic methods.
The project targets major cities, tourist, and recreational sites, serving users who seek an eco-friendly, low-cost, and convenient transportation method for moving within neighborhoods, parks, corniches, and shopping complexes.
This project directly contributes to Saudi Vision 2030 by supporting sustainable transportation solutions and enhancing quality of life.
Study Content
Targeted Products and Services
Targeted Products and Services
The electric bike rental project offers a range of services and products that cater to the diverse needs of users, including:
Renting electric bikes by the hour or day through a mobile application.
Smart charging and parking stations distributed at key locations within the city or recreational destinations.
Real-time GPS tracking service to locate bikes instantly.
Various types of electric bikes: standard, pedal-assist, and foldable bikes.
Dedicated accounts for companies and government entities to rent bikes for their employees or visitors.
Fast maintenance and replacement service in case of malfunctions.
Direct technical support through the app or call center.
Monthly or annual subscription offers at discounted rates.
Demand and Market Analysis
Demand and Market Analysis
Saudi Arabia is undergoing a significant transformation in mobility patterns, particularly with the country’s push to develop smart and sustainable infrastructure.
Numerous initiatives and projects have been launched in major cities such as Riyadh, Jeddah, and Al Khobar to support light and sustainable mobility, paving the way for ventures like electric bike rentals.
Key drivers of increasing demand include:
Growing environmental awareness and individuals’ desire to reduce their carbon footprint.
Relatively high fuel prices, making cost-effective transportation options more attractive.
A large youth demographic that prefers smart and fast mobility solutions.
The spread of recreational activities and open areas that encourage bike usage.
Governmental support for sustainable and smart transportation concepts in modern cities like Qiddiya, NEOM, and Green Riyadh.
A lack of current alternatives for short-distance personal mobility within neighborhoods or within tourist and commercial facilities.
As a result, the Saudi market is now well-prepared for this type of project, with significant growth opportunities across all regions of the Kingdom.
Investment Advantages
Investment Advantages
Increasing and sustained demand driven by urban and environmental factors.
Fully digital business model that reduces long-term operational costs.
Ease of geographic expansion by adding new stations or extending services to other cities.
High profit margins from repeated rentals of the same bike.
Potential for additional revenue streams, such as paid subscriptions, advertising on bikes or within the app.
Alignment with sustainability initiatives and Saudi Vision 2030, facilitating access to governmental support or partnerships.
Integration potential with smart city projects or major entertainment facilities.
Possibility to operate through franchising or B2B models with tourism entities and municipalities.
Project Features
Project Features
Easy access via a smart app that allows customers to rent a bike within seconds.
Affordable pricing that meets the needs of youth and tourists without requiring bike ownership.
Use of clean electric power, enhancing the project’s image as part of sustainable solutions.
Centralized and rapid maintenance ensures continuous operation.
Freedom-based rental model allows users to drop off the bike at various locations without returning to the starting point.
Multi-language app interface suitable for both local residents and tourists.
Direct integration with Google Maps and Points of Interest (POIs) for easy navigation.
Financial Indicators
Financial Indicators
Estimated Initial Capital: The startup capital for an electric bike rental project is expected to range between SAR 1.2 million to SAR 2.5 million, depending on the number of bikes, smart charging stations, as well as app development, marketing, and logistics costs.
Return on Investment (ROI): Expected to range between 25% to 30% annually, particularly in densely populated cities and tourist areas.
Payback Period: Estimated between 3 to 4 years, and could be shorter if institutional partnerships are secured or if rapid expansion into multiple cities is achieved.
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