How Do You Become A Logistics Partner With Lime?

Logistic Partner’s handle the day-to-day operations of charging, deploying, and retrieving batteries, scooters, and bikes for Lime in certain cities. Some cities only have Logistic Partner’s, some have a mix of traditional Juicers and Logistic Partner’s competing against each other, and some cities only have Juicers operating in the area. Logistic Partner’s differ from Fleet Managers with Bird or other similar companies because they don’t handle repairs and, in most cases, don’t handle the scooters exclusively.

Logistic Partners typically operate as a small business with either contract employees (traditional Juicers) or common-law employees (hourly) working under them. In cities where the Gen 4 scooters and bikes with the interchangeable batteries are located, a large charging location may not be needed as the batteries are typically charged in the local Lime warehouses. In areas with exclusive Logistic Partners, meaning only one is running the show, Lime might have those exclusive Logistic Partners storing, charging, and repairing scooters in their own business warehouses.

What You Need In Order To Apply As A Logistic Partner –

Be registered as a formal business entity, like an LLC or a Corporation
Have general liability business insurance
Have access to a fleet of vehicles
Manage staff or “sub-accounts” like traditional juicers (may need 3 or more already hired to apply)
Adhere to and meet all state and federal business & labor laws

If you already own and operate a similar business, you don’t have to jump through the initial hurdles that new business owners would face. If you don’t have an existing business, there is more risk involved. You could spend time and money creating a business without the guarantee that you will be selected by Lime as a Logistic Partner.

If you are not currently a Juicer, you simply need to meet the requirements and apply on Lime’s website. They will ask you for some basic information like your contact information, your business name, and your location. Then you will have to complete a contract and play the waiting game to hear back from Lime. Most of the interactions done beyond that point are handled by the local Lime Area Managers. It could be weeks or even months before you hear either way.

If you are a current Juicer, the Lime’s website most likely won’t allow you to apply as a Logistic Partner because you already have an account setup. You would need a new phone number and email address or to work directly with your local Area Manager to try and apply. The most common way I’ve heard of Juicers becoming Logistic Partners is by being directly recruited by Lime. Those recruited often have completed the largest number of tasks in the area consistently for a long period of time. A good starting point would be to reach out to your local warehouse to get into contact with someone involved in the internal process with Lime.

Let’s look closer at what you will need to do in order to meet Lime’s requirements as a new business owner.

Determining What Business Structure Is Best For You –

When it comes to starting a business, it is important to understand the common business structures.

Sole Proprietorship – A single owner with no separation of assets and liabilities between business and personal finances (unlimited liability). There is no requirement to register as a formal business entity.
Partnership – Two or more owners with unlimited liability or equal limited liability between all partners as a Limited Liability Partnership (LLP).
Limited Liability Company (LLC) – A company which separates liability from the owners and the business entity with the tax benefits of a mix between a corporation and a sole proprietorship.
Corporation – A company that offers the most protection against personal liability for its owner(s). The corporation is taxed twice, once for company profits and then again with individual earnings as owners/shareholders.

The most common way to start out as a Logistic Partner would be to form a Limited Liability Company. An LLC is what I would consider the bridge between a Sole Proprietorship and a Corporation. It’s a great strategy because it protects the owner(s) from being held personally responsible for the company’s debts and liabilities while also only being taxed once for the earnings paid to the employees and owner(s).

As with any business venture, I highly recommend consulting legal counsel, an accountant, and a tax expert for more individual advice and assistance through the process.

Once you decide on what type of business you want to run, then you need to choose a business name. This could take a while and I recommend giving yourself some time to process the name. You don’t want to jump on the first name that pops into your head, unless it it absolutely perfect for your business. I spent days combing through a thesaurus and bouncing ideas off of others, searching for just the right name.

How To Register Your Business

It typically costs between $110 and $150 to register a business with your state. Different states have different processes for registering your business. Some states allow you to register online or through the mail while others make you file in person.

Depending upon your state and business structure, you may need specific business documents like:

Partnership	LLC	Corporation
Certificate of partnership	Articles of organization	Articles of incorporation
Partnership agreement	LLC operating agreement	Bylaws or resolutions

Generally, you will need go through a state specific registered agent to handle the legal documents on your companies’ behalf. The US Small Business Administration is a great resource to determine what is required and how to register in each state.

How To Apply For Federal And State Tax ID Numbers

Once you have registered your business, you will need to apply for your business’s Federal Tax ID Number. This number, also known as an Employer Identification Number (EIN), is similar to an individual’s Social Security Number. This is used when paying taxes and maintaining business bank accounts. The IRS has a great online process that assists businesses with applying for an Employer Identification Number (EIN). It is called the EIN Assistant and can be found at IRS.gov.

While some states like Alaska and Texas don’t have state income taxes, most states do. If your state has income taxes, you will also need to apply for a State Tax ID Number. Again, each state is different with varying processes and procedures on how to do this. The US Small Business Administration is again, a great resource and breaks down where to start with each state.

Open A Business Bank Account And Apply For Business Insurance

If you’re starting an LLC or a Corporation, you will need to open a specific business account at a bank or a similar financial institution. There are a lot of banks that will all be eager to work with you so make sure you look at all your options. It is important to keep an eye on all the fees that are associated with business accounts, especially the various transaction fees. Even small fees can add up to a lot of money over time.

You will also need to apply for general liability insurance for your company. It costs about $40 to $55 a month for basic business coverage. Take your time weighing the prices and packages offered from the various companies. Lime may request that you get more comprehensive insurance based off of your location and the specific requirements for that location. Especially, if you are an exclusive Logistics Partner without a local Lime Warehouse close by.

Have Access To A Fleet Of Vehicles

A fleet of vehicles is simply two or more vehicles. Lime states they can be vans, trucks, or even bikes. You could apply with only your personal vehicle and a bike to start out with. As you build up your business and take on more tasks or hire more workers, you can increase your fleet of vehicles if needed. Depending upon your business model and area, you may not need to maintain a large fleet of vehicles.

Have The Ability To Hire Sub Accounts

The latest update on Lime’s website does not mention a specific number of workers, only the ability to “hire sub-accounts”. Logistic Partners will need to determine if they are going to use common law employees or independent contractors. This will be based on their business model and the local laws. Current or past Juicers, college students, and people looking for flexible work options are a good place to start when hiring workers.

While new Logistic Partners might run other businesses, most of them won’t have employees or vehicles set up to complete Lime tasks immediately. Don’t rush the process and take out a large loan to furnish a new fleet of cargo vans only to be turned down by Lime. Getting your application in is only the first step towards being approved. People who have applied are reporting not hearing anything for weeks or even months in various online groups and forums. But once you are approved, you can get to work right away.

Resources:

https://www.li.me/about/partners/logistics-partners

https://www.sba.gov/business-guide/launch-your-business/register-your-business

https://sa.www4.irs.gov/modiein/individual/index.jsp

https://www.sba.gov/business-guide/launch-your-business/get-federal-state-tax-id-numbers