What is Power Bank Rental Business Model, and How is it Classify?
At present, online traffic is becoming more and more expensive, and offline traffic still plays a key role in the market. Sharing economy is bringing more new opportunities to society for both merchants and users. The power bank rental business is a good investment opportunity for many people due to its convenience and lesser capital requirement.
What is a power bank rental business?
The power bank rental business is a business where users borrow power banks from a shared company to charge their phones on the go. The user installs the corresponding APP software on the mobile phone, scans the QR code on the power bank station, selects the rental option according to the operation prompt by paying a certain deposit, then rent a power bank, charges mobile devices, and gets charged by the hour. If the power bank is not returned, the deposit is equivalent to buyout the power bank.
Advantages of power bank rental business
- First, the charging demand itself is just high frequency. Except for fixed places such as home/office, other mobile situations, emergencies, and other charging must use the power bank, and the power of the smartphone is difficult to support the power of a day fully, the power bank itself does have a very great demand, the market is there, the users are mature, and the demand is great;
- Second, the power bank itself is heavy and not small in size, and it is not as personalized as a cosmetic bag or a wallet. The role of space and identity identification is more practical, so it is more likely to be shared;
- Third, the power bank is easier to manage and control than bicycles, and it is easier to detect damage and battery usage.
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Category of power bank rental business models
The business models of the shared power bank industry are divided into three types: direct sales, service provider, and franchising.
1. The direct operation mode refers to the direct investment and operation of the company headquarters, with a brand as the lead, investing in establishing branches or subsidiaries in various places and obtaining all the rental income. Still, it would help if you were responsible for recruiting, scene analysis, bidding operation, maintenance, etc., all links.
2. Service providers are businesses that provide services to customers, similar to the business developers under the direct operation model. Service providers do not need to purchase equipment. The platform is divided into a one-time fee-based method, charges an entry fee in the early stage, and draws according to the cash flow. In the case of a high proportion of service fees in the later stage, the proportion of service providers in different situations is about 20%~40%.
3. The franchising model is that the franchisor sells the equipment to the agent, and the agent owns the equipment and is responsible for the distribution and later operation of the shared power bank station. The specific share ratio is directly agreed between the agent and the store.
We’ve also introduced how to enter the shared power bank indutry by creating your own brand or franchising.
Among the three models, the agency model has relatively little initiative. Still, the stability of cash flow and profit is higher than that of the other two business models, and the cash flow pressure is the least. In terms of equipment distribution, agents and service providers can quickly open up the market and seize positions in the early stage. Still, due to the lack of relevant professional teams, their capabilities in later operation and market development are slightly weaker than those of the direct sales model. At present, the industry is mainly based on the direct sales model.
ChargeEight is a top power bank rental business one-stop solution supplier. Our services include shared power bank station manufacturing, power bank rental app development, payment gateway integration, and management system development. Moreover, we’re the only company that can offer business operation support in the industry based on real operation experience. Feel confident to contact us if you’re interested in the shared power bank rental business.