Start An E-Rickshaw Rental Business - Here Is Your Guide

Start An E-Rickshaw Rental Business - Here Is Your Guide

For the past decade, electric rickshaws have provided last-mile connectivity. They have proven to be the most cost-effective and convenient transportation across cities.

Due to this reason, the number of E-rickshaw on the road is increasing rapidly. Every month, over 11,000 new e-rickshaws are purchased in India. Therefore, starting an electric rickshaw rental business may be the best option. It is also relatively easy and doesn't require a lot of paperwork. As a result, this blog will cover how to start an E-rickshaw rental business and the estimated cost and profit margin of an Electric rickshaw rental business.

Why Do People Prefer to Rent from an E-Rickshaws Rental Business?

E-rickshaws have grown in popularity among commuters and those looking to buy one. So, here are some of the reasons why people might rent an E-rickshaw.

Affordability 

E-rickshaw opens the gate of independence for both men and women in poor and underprivileged societies. So, it gives the ability to be the breadwinner of the family. However, for some, purchasing an e-rickshaw can be costly. The main reason for this could be a lack of funds.

However, the E-rickshaw rental business can help them earn money with the help of E-rickshaw. In Delhi, an average E-rickshaw driver earns between Rs. 400 and Rs. 800 per day, with some earning up to Rs. 1,000. The usage defines the amount earned.  

Low Operating Cost

E-rickshaws are battery-powered electric vehicles. As a result, they use very little electricity. Furthermore, the day-to-day operating costs are low. It is a huge help because traditional fuel prices are skyrocketing and expensive. This is particularly beneficial for those who want to spend less on operations but want to earn more.

Earning Is More

People from the working class are drawn to them because they are the most commonly used mode of transportation. In Delhi, Lucknow, Varanasi, Ghaziabad, Dehradun, Udaipur, Indore, Patna, Bhagalpur, Ranchi, Coimbatore, and Puducherry, e-rickshaws have become an integral part of people's lives. This means that they can earn more than doing any other jobs.

Zero Air Pollution

E-rickshaws contribute to the noble cause of pollution reduction. Pollution is extremely high in major cities such as Delhi, Mumbai, and Bangalore. So, the government is trying its efforts. E-rickshaws offer eco-friendly transportation at a low cost to the general public.

E-rickshaw is powered by solar battery or electrically charged batteries. As a result, unlike petrol, diesel, and CNG vehicles, it does not emit harmful gases into the atmosphere. so, e-rickshaws are the environment's saviour.

The Estimated Cost and Profit Margin Of An E-Rickshaw Rental Business

As previously stated, an electric rickshaw is less expensive than most petrol/diesel vehicles. TVS Auto Rickshaw Price, for instance, is higher than any other e-rickshaw model. Furthermore, many people prefer it as a mode of public transportation. These are just a few of the many reasons why you should start an e-rickshaw rental business. First, let's look at the total amount used and how much revenue you can expect from an E-rickshaw rental business.

The first investment would be in an E-rickshaw. For one E-rickshaw, the initial investment is approximately 1.5 lakhs. To rent them out, you can expect to pay around 10 lacs to buy 8 to 10 E-rickshaws.

You do not have to be concerned if you don't have enough money. The Indian government has framed policies and assisted to increase the use of electric vehicles in India, including e-rickshaws. Our government has launched the following schemes to assist entrepreneurs in starting their businesses:

Subsidy by Fame I

The Fame India scheme was launched to address the increasing environmental pollution and fuel depletion issue. To encourage the purchase of electric vehicles, the Fame India 1 scheme was undertaken from 2019 to March 31, 2022. The government will provide subsidies for the purchase of new electric vehicles. Under this scheme could range from Rs 25,000 to Rs 61,000 based on the e-rickshaw model. Hence, this will promote electric mobility.

Furthermore, the government has extended the FAME II scheme for another two years. This scheme will now be in effect until March 31, 2024. This scheme will also provide the necessary charging infrastructure for electric vehicles.

Pradhan Mantri Mudra Yojana (PMMY) 2015

Pradhan Mantri Mudra Yojana is an Indian scheme launched by India's Prime Minister, Narendra Modi, through Mudra Bank. In layperson's terms, the Central Government established the Mudra Loan Scheme to provide loans to the lower and middle classes on simple terms and at low-interest interest rates. The purchaser can repay this loan in five years. Mudra Bank is divided into Shishu, Kishor, and Tarun.

  • Shishu offers loans of up to Rs. 50,000.
  • Kishore - Loans from Rs. 50,001 to Rs. 5,00,000
  • Tarun - Loans over Rs. 5,00,000.

This scheme also applies to the purchase of electric rickshaws.

Once you purchase it, you can rent the E-rickshaw to others by making a small space available. You could rent these rickshaws for as little as Rs. 300 to Rs. 350 per day and earn close to Rs. 3000 per day.

It is also important to note that renting electric rickshaws incurs additional costs—for example, vehicle maintenance or repair. Even though E-rickshaw requires little maintenance, repairs can be expected. The repair costs would range between Rs. 600 and Rs.1000.

Owning multiple electric rickshaws would also necessitate the purchase of a parking space for each one, which would require additional investment.

Conclusion

In the beginning, the e-rickshaw, like any other new product, was met with a great deal of criticism. However, in today's scenario, e-rickshaws are one of the most preferred modes of transportation for passengers due to their effectiveness and efficiency. And, with the increasing demand for electric rickshaws and the government's plans, Electric rickshaws will soon dominate public transportation. So, get started with your e-rickshaw without further delay.