Mumbai and Begaluru based motorcycle rental startup ONN is taking the next step from renting bikes to renting e-bikes in Pune
Bike rental startup ONN which has close to 3,500 bikes in nine cities is planning to foray into EV space. The startup is ready to launch around 1,000 electric cycles in Pune with the partnership of bike manufacturer in Gujarat and the Charging infrastructure company. The firm currently employs 130 people and holds an annual income of approximately 7 crores.
The company is headed by a team of five members-Namit Jain, Akashdeep Singhal, Kunal Gupta, and Shobit Saxena, and also practices B2B and counts Ola and Uber among its first clients.
Electric Two-Wheeler Costs Under 50 Paise
ONN Bikes has so far raised $3 million in debt, and $1.2 million from ZNation Labs and Grace Capital, and Namit says the team is now on the lookout for fresh funding to expand the idea of using electric bikes across the country.
“While we were among the best-performing companies in terms of unit economics, we realized that petrol vehicles would not make money for us, or the industry, in the long run, thanks to maintenance costs. We decided to keep the existing set of bikes running, and decided to flip our story towards electric vehicles,” says Namit.
According to the startup, It costs under 50 paise per km to run an electric two-wheeler when compared to a petrol vehicle. On the other hand, petrol bikes run for a minimum of Rs 5 per km for the end customer, but the cost of running the operation was well over Rs 15.
The startup has also made a partnership with the government bodies, city planners and smart city corporations to create a network of safe parking zones. The company also have competitors such as Yulu, Bounce, Ola Funded Vogo, and Mobycy in the country.
However, like ONN, Yulu and Mobycy also started their business with bicycles and later transitioned to electric bicycles. ONN Bikes is still in progress to choose a right and suitable product to run in the market.