Startup company NakRide starts a motorbike sharing platform to enable motorbike owners in Malaysia to rent their bikes on a daily basis. Inspired by Airbnb, this peer-to-peer platform offers additional income to motorbike owners without the need to work as delivery riders.
NakRide was one of the participants of Perak Startup 2019, part of the Perak International Expo. NakRide is part of the MaGic Accelerator program. Launched in 2018, they started with KLezBike and have since rebranded to NakRide. This is because they have expanded their operations from the Klang Valley to Negeri Sembilan, Kelantan, and Penang, with over 70 bikes for hourly and daily rentals.
We spoke with their team, CEO Mohd Farhan bin Mohd Salleh, and Business Development Head, Mohd Fhati Abd Azat.
Start Small, Finish Big
NakRide started with just three of their own bikes which they purchased. As NakRide is self-funded, they wanted to expand their operations but had limited capital. Hence, they came up with a peer-to-peer rental, similar to the AirBnB business model which is based on the sharing economy. Basically, they expanded their operations using other people’s motorbikes.
They are currently raising funds to expand their business to the whole of Malaysia. Moving forward, they target to have a thousand bikes registered on their platform.
NakRide Team, Winner of Pitching, at the Perak Startup Festival 2019
Enabling The B40 Group
NakRide accepts motorbikes from 100 cc to 1,000 ccs. However, the majority of the motorbikes on the NakRide platform falls in the lower range, with the most popular range of up to 250 cc bikes. As these types of motorcycles are mainly owned by the lower-income group (known as the B40 group, as the form the bottom 40 percent of the population who are earning RM3,000 or less per month), the main target group are renters and owners who fall in this category.
For the owners, the benefits are the ability to earn additional income from their bikes, without the need to work as riders. According to Mohd Farhan, “owners can expect to earn up to RM100 to RM200 per month”. NakRide earns 30% commission of the rental fee.
Motorbike renters use it for their convenience, from tourists who want to see the city on their own, to other bikers who need it because their own motorbikes broke down, to gig riders who need to rent a bike to earn an income.
“For renters, the rates are considerably competitive, ranging from RM6 per hour or RM30 per day,” according to Mohd Fhati.
Owners Assured of Security
Motorcycle owners are worried about their bikes getting stolen are provided relief. NakRide offers GPS tracking devices to be installed on the owner’s bikes. Owners just have to pay RM350 for the installation of the GPS tracker, which will be owned by the bike owners. Owners would also need to purchase additional insurance.
Other safety measures include a verified and vetted customer profile, which includes NakRide performing background checks of their licenses and identities.
An Inclusive Economy
With the digital economy, the lower-income group is typically left behind, as their options to participate in the sharing or gig economies. They typically lack the assets needed to participate, such as listing their homes on AirBnB, or have the required skills for the freelance gig economy. Currently, the lower-income group can participate in the digital economy as delivery riders, either as parcel riders or food delivery riders.
Even delivery riders need to have a motorbike to start working. With this platform, NakRide is able to enhance the income for both the bike owners and the bike renters.