How Riders Share Revolutionized Motorcycle Rentals: Building the First Successful Two-Wheel Sharing Platform

In the ever-evolving sharing economy landscape, one entrepreneur saw an opportunity that others had missed building a motorcycle sharing platform. When Guillermo Cornejo crashed his motorcycle, he faced a common rider’s dilemma: the high cost of ownership for a vehicle he’d only use occasionally. This frustration led to the creation of Riders Share, now the leading peer-to-peer motorcycle rental platform in the United States, transforming how people access and share motorcycles across the country.

From Data Analysis to Disruption

Before becoming an entrepreneur, Cornejo worked as a data analyst in the automotive industry, analyzing everything from used car sales to subprime loans for companies like GM, Nissan, and Hyundai. His role encompassed various aspects of the automotive business, including lease analysis, dealership loans, planning, and even call center optimization. Despite his successful career, he felt his skills were underutilized and yearned for a bigger challenge.

The lightbulb moment came after his motorcycle accident. “I didn’t want to spend several thousand dollars buying a new bike that I’d only use every other weekend,” Cornejo recalls. When he explored rental options, he was shocked to find motorcycles cost around $200 per day to rent – a price point that clearly indicated a market opportunity. His background in subprime risk management gave him unique insights into how to handle the insurance risk associated with motorcycle rentals, a crucial aspect that would later become a competitive advantage.

Building the Platform A Journey of Persistence

The road to success wasn’t smooth. With initial savings of $15,000, Cornejo began by validating his idea through a basic website that collected leads. This allowed him to estimate customer acquisition costs for both supply and demand sides of the marketplace. He continued working his analyst job, which provided the financial stability needed during the early stages of development.

Before making the final leap, Cornejo spent six months researching the market size and analyzing information from news articles about competitors, particularly the CEO of the largest brick-and-mortar motorcycle rental company. His careful analysis and forecasts about transaction sizes and gross margins proved remarkably accurate six years later.

The first major hurdle came with website development. After two failed attempts at outsourcing, Cornejo realized he needed a technical co-founder who would be truly invested in the project’s success. He found his match in Brendon through an unlikely source – Reddit. “I went through three potential cofounders before finding someone who matched our work ethic and vision,” he explains. The partnership proved transformative, as having a dedicated technical co-founder who understood the end goal and worked tirelessly made a significant difference in product development.

Overcoming Financial Challenges

The financial strategy behind Riders Share’s launch was both creative and risky. Cornejo demonstrated remarkable resourcefulness in securing initial funding:

• Secured 10 credit cards simultaneously, building a $60,000 credit line
• Leveraged his MBA program’s full scholarship and loans
• Invested about $100,000 of combined personal savings and loans
• Used the MBA program at UCLA to network with future investors
• Managed living expenses while building the business through strategic use of education loans

Initially, the business lost money on every booking due to high insurance costs. However, Cornejo understood that building a track record was crucial for negotiating better rates in the future. This strategic loss-leading approach eventually paid off as improved gross margins and rapid growth attracted institutional investors.

Growth and Marketing Strategy

Unlike many startups that rely heavily on paid acquisition, Riders Share found success through earned media and organic growth. The platform’s unique position as the first in its space attracted significant press coverage, helping to build the initial supply of 500 motorcycles. However, the team learned early on that pre-launch interest doesn’t always translate to action – none of their initial 500 interested parties actually listed their motorcycles, teaching them valuable lessons about the difference between survey data and actual user behavior.

Their comprehensive marketing approach focused on:

• Targeting SEO through optimized content and earned backlinks
• Building relationships with motorcycle magazine editors
• Leveraging existing sharing economy communities
• Creating valuable content distributed through newsletters
• Strategic use of Google Ads to jumpstart presence in new cities
• Personal outreach in forums, social media, and community groups
• Targeting hosts from other sharing economy platforms
• Developing a strong organic traffic strategy through quality backlinks

Innovative Features and Customer Retention

Understanding the unique challenges of their market, Riders Share developed several innovative solutions:

• Comprehensive insurance coverage for all rentals
• Roadside assistance services
• Secure payment processing
• Trust-building features to facilitate peer-to-peer transactions
• A subscription service offering 35% discounts for regular users
• Streamlined verification processes to prevent fraud

Current Success and Future Vision

Today, Riders Share boasts impressive metrics:

• Over 22,000 listed motorcycles nationwide
• 120,000+ registered users
• $3.5 million in venture capital raised
• 45% profit margins
• 55% of total rental revenue (25% net take rate)
• Operations in 48 states with 6 full-time employees
• 100% year-over-year growth despite COVID-19 impacts
• Average transaction value exceeding $300
• 1% conversion rate across channels

The company continues to innovate, recently launching a subscription service offering 35% discounts to encourage regular usage among its primarily travel-focused customer base. Their future goals include quadrupling revenue compared to 2020 and expanding their services to encompass more aspects of the motorcycle travel experience.

Technical Infrastructure and Tools

The company’s technical foundation is built on:

• Custom-built in-house website platform
• Tint.ai for insurance brokerage
• Mailchimp for email marketing (considering Klaviyo)
• Dialpad for customer service operations
• UpCounsel for legal services
• Six specialized APIs for fraud prevention and insurance risk reduction

Lessons for Entrepreneurs

Cornejo’s journey offers valuable insights for aspiring founders. He emphasizes the importance of having a genuine competitive advantage before starting a business. “Being first-mover isn’t usually an advantage,” he notes, “but in our case, it helped us secure crucial press coverage and gather valuable insurance data that gives us superior pricing today.”

The platform also faced unexpected challenges, particularly in online fraud. From Nigerian scammers creating fake listings to identity theft attempts, these experiences taught them to build robust security measures and expect to lose about 0.5% of revenue to chargebacks. The COVID-19 pandemic also tested their resilience, though they managed to maintain growth despite the challenges.

Looking Ahead

With plans to quadruple revenue compared to 2020, Riders Share aims to expand beyond simple rentals to enhance the entire motorcycle travel experience. Their mission remains clear: make motorcycle riding more accessible and affordable for everyone. The company’s focus on reducing costs while improving service quality positions them well for continued growth in the sharing economy landscape.