Editor’s note: This article was first published in September 2010. Of the cities named, New York’s public bike-share (Citi Bike) only launched in 2013, so the text can only refer to private or tourist rentals there. Coin-operated machines dispensing a padlock key describe early schemes; today most systems use cards or apps.
Until now, the bike rental business was seen as something for certain developing countries, but it is increasingly spreading to the world’s major cities. New York, London, Paris and Barcelona are already places where you can get a bike, either to go sightseeing and explore the city or to ride to work and avoid the traffic.
It’s a business that needs very little investment, because bikes aren’t very expensive to buy and you can recover your initial investment in a very short time.
Why would an executive rent a bike instead of simply buying one?
There are several reasons to rent. For a start, they don’t have to take it up to their flat or house. And, depending on the type of rental, they don’t have to haul the bike around after work if they have other things to do.
One drawback of this business may be the obstacles your city council puts in your way when you want to take up space on the street, because for this business idea to work, the more central you are, the better.
On the plus side, a body like a city council, rather than putting obstacles in the way of this business idea, ought to support you, since you are helping the environment and promoting a healthy lifestyle.
In some cities this business idea is so advanced that users simply insert a coin into a vending machine, which gives them the key that opens the padlock so they can take the bike.
If you are an entrepreneur interested in this business idea, I’m sure you will look for a way to make it happen in your city. As with many other businesses, launch some initial advertising to make your service known, and over time word of mouth will take care of the rest.
Further reading
- 10 business ideas with no investment
- How to start your business with no money
- How to find business ideas
- The businesses of the future
- How to run a business in times of crisis
Featured image: Michael Coghlan from Adelaide, Australia, CC BY-SA 2.0, via Wikimedia Commons.
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