Major Issues Are Facing City Rental Scooter Startups

There have been numerous startups that have opened their doors during the past few years. There is something fulfilling about taking a company from the ground up and one of the most successful startups involves city scooters. For those who might not know, city scooters are a popular way for people to get around town. While taking an Uber might be a quick way to travel a few miles, there might be heavy traffic in the city. Renting a city scooter is a great way to move quickly while avoiding traffic; however, there are some major issues that are facing rental scooters today. It is important for everyone to know about some of the major issues that are facing these city scooters.

Regulation

First, there are a number of legal and regulatory issues that are arising for startup companies that face city scooters. For example, many cities have different ways they regulate these scooters. Some cities classify these scooters as vehicles and require the companies to operate under one set of rules. Then, there are some cities that do not consider these city scooters to be vehicles and allow them to operate with a bit more freedom. In this manner, startups that make rental scooters were prepared for some of these regulatory issues but not all of them.

Liability

Another major issue facing city scooters involves the injuries that people might suffer while riding them. First, anyone who rides a city scooter must remember to wear a helmet at all times. This is like riding a bike. Wearing a helmet could save someone’s life in the event of a fall from one of these city scooters. Of course, this also leads to a major legal issue.

Are startups that make rental scooters responsible for the injuries that people suffer while riding these scooters? While some people might think it is hard for someone to fall from a scooter, this is not the case. There could be shifts in traffic patterns or unseen objects that cause people to fall. Is the company responsible? What if the scooters haven’t been made properly and something goes wrong while people are riding it? What about car accidents that are caused by city scooters that are left in the street when people are done with them? These are just a few of the many legal questions that are facing startups that make city scooters.

Startup Challenges

Finally, many of these startup companies are having their financial issues compounded because there has been a major drop in demand for these rental scooters in the wake of the coronavirus pandemic. These startups could not have foreseen this virus; however, they are feeling the effects nonetheless. Many people realize that city scooters are popular “touchpoints” which might spread the virus. Furthermore, because of shelter in place orders, many people simply are not going out. Therefore, they aren’t renting city scooters. When this is combined with decreased traffic, there is just a lack of incentive to use city scooters today. This is only adding to the problems facing these scooter startup companies.