Ever thought about hitting the open road on a motorcycle but didn’t want to break the bank on rentals? Meet Riders Share, the “Airbnb for motorcycles,” where you can rent bikes directly from fellow enthusiasts. Founded by Guillermo Cornejo, Riders Share has created a thrilling marketplace that makes motorcycle rentals accessible, seamless, and—get this—profitable! Let’s rev up our engines and dive into the story behind this exciting venture.
The Birth of Riders Share
Guillermo’s journey into the world of motorcycle rentals wasn’t just a lucky ride; it stemmed from his own experiences. After crashing his bike (yikes!), he was shocked to find traditional rentals could cost upwards of $200 per day. He spotted a gap in the market and decided to create a more affordable, convenient option for riders. With a data analysis background working with big names like GM and Nissan, Guillermo was equipped to tackle market demand and insurance concerns head-on.
Starting small, he created a basic website to gather leads while keeping his day job as a data analyst. With $15,000 from his savings, he kicked off Riders Share, but the real magic happened when he committed to it full-time. After six months of market research and competitor analysis, the stage was set for something big!
Building and Scaling the Platform
Now, here comes the fun part! Building the Riders Share platform wasn’t without its bumps. Initially, Guillermo tried outsourcing development but faced high costs and mediocre results—ouch! But in 2017, he found his technical co-founder, Brendon, through Reddit. Together, they turned the vision into reality, making strides every day to enhance the platform.
Guillermo also faced high startup costs, especially when it came to securing insurance and advertising on Google and Facebook. At one point, Riders Share was losing money on every booking! But Guillermo was determined, absorbing the losses while negotiating better insurance rates as the platform gained traction.
Startup Funding: A Mix of Savings and Loans
To get the wheels turning, Guillermo took an unconventional funding route. Besides his initial savings, he opened 10 credit cards, creating a $60,000 line of credit. He even enrolled in an MBA program at UCLA, using student loans to cover living expenses while also fueling Riders Share. All in all, he invested around $100,000, gathering enough data to secure more affordable insurance policies and boost the platform’s margins.
Growth Strategy: SEO, Ads, and Strategic Partnerships
Riders Share didn’t just coast along; they revved up their growth through savvy digital marketing strategies! With a keen eye on SEO, Guillermo ensured Riders Share shone bright in Google search results. The team created engaging blog content targeting niche keywords related to motorcycle trips, capturing organic traffic like a pro.
But that’s not all! They invested in Google Ads to accelerate their visibility and even dabbled in social media advertising. A massive boost came from being dubbed the “Airbnb for motorcycles,” catching the eye of journalists and leading to coverage in motorcycle magazines and blogs. By building relationships with media folks, Guillermo secured feature stories that generated quality backlinks and bolstered Riders Share’s credibility.
Customer Retention: A Subscription Model for Repeat Users
Attracting new riders was just half the battle—keeping them was another story. To encourage repeat rentals, Riders Share launched a subscription model, offering a 35% discount for a small monthly fee. Though it’s still in its early stages, it’s a promising move toward building customer loyalty and getting more folks on bikes!
Lessons Learned: Key Takeaways for Entrepreneurs
Guillermo’s journey is packed with valuable lessons for aspiring entrepreneurs. Here are some golden nuggets of wisdom he gathered along the way:
- Prepare for the Unexpected: The pandemic taught Riders Share the importance of adaptability. When the market shifts, be ready to pivot!
- Fraud is a Serious Risk: Rental marketplaces face challenges like fraud. Riders Share estimates 0.5% of its revenue is lost to this, making it crucial to have strong safety measures in place.
- Have a Competitive Advantage: Start a business only if you possess a clear competitive edge. Guillermo’s experience in data analysis and insurance gave him a unique advantage in the motorcycle rental game.
- Being a First-Mover Can Pay Off: While not always a guarantee, being first in the market helped Riders Share gather valuable media attention and negotiate better insurance rates than competitors.
Top Resources That Fueled His Journey
Guillermo credits his growth and mindset to several influential books, podcasts, and resources. Here are his top picks:
- Books:
- The Lean Startup by Eric Ries – A must-read for entrepreneurs looking to streamline their startup process and validate their ideas effectively.
- The Platform Revolution – This book provides specific strategic advice crucial for the success of online marketplaces, and Guillermo emphasizes how adhering to its principles has played a significant role in Riders Share’s success.
What the Future Holds for Riders Share
Today, Riders Share operates in 48 states and boasts a team of six dedicated employees. With a 45% gross margin and a 25% take rate from total rental revenues, they’re cruising toward profitability. The average transaction value? Over $300!
Guillermo has big dreams for the future—he aims to quadruple Riders Share’s revenue by reaching new audiences and making motorcycle riding accessible to more people.
Conclusion: Turning Passion into a Thriving Marketplace
Guillermo Cornejo’s adventure with Riders Share is a shining example of how perseverance, creative problem-solving, and savvy digital marketing strategies can turn a passion into a booming business. With a combination of SEO, earned media, and strategic partnerships, Riders Share has successfully transformed motorcycle rentals into a thriving marketplace where every ride counts. So, if you’re itching to hit the road on two wheels, you know where to go!
