How to start a legally compliant e-scooter sharing service

E-scooter sharing is a thriving business that is catching on in many Italian cities. Entrepreneurs who want to start their own sharing business know it is a profitable investment that, looking at the numbers, can offer excellent earning prospects.

What not everyone knows, though, is that e-scooter sharing is regulated by law. To open this type of business, it is essential to comply with all national and local regulations.

It’s by no means impossible, but when you start your own business it is vital to find out carefully about the steps to follow.

We asked BikeBoom’s founders, Antonio and Francesco, to help us understand how to open a legally compliant e-scooter sharing service.

What does sharing involve?

“Sharing is in itself a very simple business that consists of shared rental, as the word suggests. Anyone starting a sharing business places vehicles in a given area, either free-floating (with free parking) or station-based. The service’s starting areas are usually already specified in the Public Notice issued by the Municipality.

The vehicles are activated by a mobile app, which also records the user’s payment. Generally, shared e-scooters are paid for by the minute. Only registered, paying users with the sharing app can activate a vehicle.

In addition, all vehicles are fitted with GPS tracking systems, a way of protecting both users and the owners of sharing companies in case of theft.”

From a bureaucratic point of view, what do you need to do to open an e-scooter sharing business in a Municipality?

“The opening of electric mobility sharing services is governed in Italy by several pieces of legislation. One of the most important is Presidential Decree no. 481 of 19 December 2001 (Regulation simplifying the authorisation procedure for renting vehicles without a driver).

This law sets out certain obligations for anyone who wants to open a vehicle rental business, and therefore also an electric vehicle sharing business:

• notification must be given to the local SUAP (one-stop shop for businesses);
• there are insurance obligations for carrying out the business (third-party liability policy);
• it is compulsory to obtain the Municipality’s permission to run sharing activities.

In addition to these national laws, there are local regulations that can vary from one Municipality to another. Remember, too, that vehicles must be compliant and in working order. The latest legal update is very recent and will come into force in January 2024.”

Which e-scooters are compliant for sharing?

“Last September, as we said, the Ministry of Infrastructure decreed that, to be legally compliant, all e-scooters on the road must be fitted with the following devices:

• dual brake levers (front and rear);
• red rear brake light;
• white front light;
• direction indicators;
• horn or bell.

The requirement came into force on 30 September 2022 for new vehicles and will apply from 1 January 2024 to those already on the road, including through fitting dedicated kits that comply with EU standards.

Anyone who wants to open a sharing business must also know the earlier provisions, which remain in force:

• motor no more powerful than 500 watts;
• riding on urban roads or on cycle paths, including out-of-town ones, at a maximum of 20 km/h;
• riding in pedestrian areas at a maximum of 6 km/h, where permitted by local municipal regulations.”

Is it easy to get permits from Municipalities?

“E-scooter sharing is growing because it is very attractive to Municipalities too. A study by the University of Navarra’s IESE Business School explains clearly how European Municipalities involved in sharing projects enjoy significant economic and social benefits for public health.

Sharing is also good for tourism, and many destinations ask companies to set up sharing services for limited periods. So Municipalities have every interest in granting permits to offer residents and tourists a sustainable (and trendy) mobility service.

But the regulations are clear and can vary from Municipality to Municipality. Less experienced sharing companies may struggle to interpret local and national rules, and therefore to submit correct, acceptable applications.

That is why at BikeBoom, to make things easier for new partners opening a sharing franchise, we offer exclusive advice on obtaining the municipal operating licence by taking part in municipal tenders.

Are there advantages to opening an e-scooter sharing franchise with BikeBoom?

“Yes, because our partners receive all the administrative support and advice they need to obtain licences from Municipalities.

We think this is a considerable advantage, because we can really make it easier for our franchise partners to get their business off the ground.

On top of that, our Sharing partnership offer has no entry fee, and we supply BikeBoom-branded e-kick scooters, e-bikes and vehicles that are compliant and in perfect condition. We also provide the BikeBoom rider app and operator app.

We have designed a unique package that cuts initial investment while offering a really attractive financial return for partners. It includes the free sharing app and the purchase of a vehicle package for €9,900.

On the one hand, this helps new entrepreneurs launch themselves in this sector; on the other, it lets us constantly strengthen our Community of sustainable mobility enthusiasts all over Italy.”

Open an electric vehicle sharing franchise with BikeBoom

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