One E-Scooter — 10 Brands: How Does It Work? OEM and ODM Explained in Simple Terms

Why does the same e-scooter or bicycle sell under different names? We explain OEM, ODM, OBM, and Private Label models with real-life examples.

2026-03-30 03:00 · Published
8 min read
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Why Identical E-Scooters and E-Bikes Are Sold Under Different Brands: A Complete Guide to Manufacturing Models OEM, ODM, OBM, and Private Label

When shopping for an electric scooter or e-bike, consumers often come across several models from different brands that are visually indistinguishable. They share the same frame, identical hub motors, batteries, controllers, and even folding mechanisms. Prices, however, may vary by tens of percent. This raises a natural question: how can one and the same product be sold under different names and with different logos?

The root of this phenomenon lies in the structure of global manufacturing, where the functions of design, production, and sales are split among specialized companies. Understanding these mechanisms is essential not only for entrepreneurs planning to launch their own brand but also for engineers, marketers, and procurement managers. This article provides a detailed look at the OEM (Original Equipment Manufacturer), ODM (Original Design Manufacturer), OBM (Own Brand Manufacturer) models, as well as related concepts such as EMS (Electronics Manufacturing Services), CM (Contract Manufacturing), and Private Label. Special attention is paid to the phenomenon of identical devices appearing on the market under multiple brands and to the practical implications of such an approach.

1. The Key Question: Why Can the Same E-Scooter Be Sold Under Different Names?

Imagine a Chinese factory, “ScooterTech,” develops a new e-scooter model. Its engineers design the frame, select a 350 W hub motor, a 10 Ah battery pack, develop the controller and firmware, and create molds for the plastic body parts. The cost of development and tooling runs into hundreds of thousands of dollars. To recoup this investment, the factory needs to produce tens of thousands of units. However, the factory either does not want to or does not know how to enter the consumer market under its own brand—it specializes in manufacturing, not marketing.

The solution: the factory offers the ready-made design (an ODM platform) to several brand customers. Each brand places an order, applies its own logo, chooses color schemes and packaging, and then sells this essentially identical scooter under its own name. As a result, the market sees “CityRider,” “EcoMove,” and “SpeedGo”—visually and technically identical devices, differing only in stickers. The factory achieves economies of scale, recoups its development costs, and lowers the unit cost, while the brands get a market-ready product without having to maintain an engineering department or production facilities.

This is the classic ODM (Original Design Manufacturer) model. It dominates the micromobility segment as well as other categories of mass-market electronics: smartphones, headphones, smartwatches, peripherals. Thus, the “sameness” of e-scooters is a direct consequence of a business model where design and production are centralized at the factory, while brands compete with each other in marketing, service, and pricing, but not in technical uniqueness.

2. Basic Manufacturing Models: Definitions and Explanations

OEM — Original Equipment Manufacturer

An OEM is a company that manufactures components or finished products strictly according to the technical documentation provided by the customer. The customer (brand) has full control over the design: it creates drawings, specifications, selects materials, and approves the construction. The manufacturer is only responsible for physical realization—procuring standard components, assembly, and testing according to the client’s requirements. Intellectual property for the design remains with the customer.

In the e-scooter world, OEM is used less frequently, but it appears when a brand has its own engineering department and wants to create a unique model with no analogues. For example, if a brand designs a special magnesium-alloy frame, orders its casting at a factory, and then entrusts final assembly to a third party using its own components—that is OEM.

ODM — Original Design Manufacturer

ODM is a model where the manufacturer designs and manufactures the product independently, then offers it to brands for rebranding. The factory acts as both the design author and the assembler. The brand customer may only make cosmetic changes: color, logo, packaging, sometimes minor modifications if the platform allows them (e.g., installing a larger battery or different tires). This model underlies most “cloned” e-scooters and e-bikes.

ODM manufacturers are typically large enterprises with their own R&D centers. They create universal platforms that can be equipped with various batteries, motors, and controllers. This allows the same factory to offer several variants of one base model: economy, standard, and premium. Brands choose the desired configuration, apply their logo, and bring the product to market.

OBM — Own Brand Manufacturer

OBM is a vertically integrated company that designs, manufactures, and sells products under its own brand. This structure gives maximum control over quality, innovation, and pricing, but requires enormous investment in R&D, production facilities, and marketing. Examples of OBM are Apple, Sony, Samsung—they design devices, manage supply chains, and market them under their own names, keeping key competencies in-house.

In the e-scooter and e-bike sector, OBM appears among major players that have their own engineering departments and production lines (e.g., some European and American premium brands). However, even they often use OEM or ODM schemes for individual components or entire entry-level models.

EMS — Electronics Manufacturing Services

EMS is a model focused on providing a full range of services: process engineering, component procurement, surface-mount assembly (SMT), subassembly, testing, logistics, and after‑sales service. EMS providers often act as OEM partners, but their role is broader—they may assist in optimizing the design for manufacturability (DFM). Major EMS companies—Foxconn, Jabil, Flex—serve numerous brands across various industries. In the context of e-scooters, EMS may perform assembly of controller PCBs, hub motors, and even complete device assembly.

CM — Contract Manufacturing

CM is a term close to OEM, often used to describe a narrower scope of services: assembly according to customer drawings without deep engineering support. CM typically does not participate in product development; its task is to accurately reproduce the product based on the provided documentation. In the e-scooter industry, CM might, for example, perform frame painting or wheel assembly according to brand specifications.

Private Label

Private Label is a model where a retailer or chain orders production from a third-party factory (often under an ODM arrangement) and sells the product under its own brand name. This approach allows the retailer to control assortment, pricing, and exclusivity. Typical examples include e-scooters sold under the brands of major online platforms or sports equipment chains.

3. Comparative Analysis of Models: Who Is Responsible for What

The choice among OEM, ODM, OBM, and related formats depends on the balance between control over the product, investment level, and time to market. Below is a comparative summary based on key parameters.

ModelDesign developmentProductionBrandingQuality control
OEMCustomerManufacturerCustomerCustomer
ODMManufacturerManufacturerCustomerPartially customer
OBMBrand itselfBrand itselfBrand itselfBrand itself
EMSCustomerService manufacturerCustomerCustomer
CMCustomerContract manufacturerCustomerCustomer
Private LabelManufacturer or intermediaryManufacturerRetailer/brandRetailer/customer

As the table shows, the brand’s involvement in development decreases when moving from OEM to ODM, and with Private Label the brand (retailer) is minimally involved in the technical side, focusing instead on marketing. In the e‑scooter business, ODM and Private Label dominate the mass market segments, while premium brands may use OEM to create unique designs.

4. Why ODM Is So Popular in the Micromobility Industry

E‑scooters and e‑bikes are products composed of standardized modules: frame, hub motor, controller, battery, braking system, display. Developing each module requires high expertise, but component standardization allows factories to create platforms that can be easily adapted for different brands. The main reasons for ODM’s dominance are:

  • Savings on development: creating a new model from scratch costs between $50,000 and $200,000 (tooling, testing, certification). ODM allows these costs to be shared among several brands.
  • Speed to market: a brand can get a ready‑made model in 2–4 months, whereas in‑house development takes a year or more.
  • Component standardization: factories purchase motors, batteries, controllers in large volumes, lowering costs and simplifying logistics.
  • Certification: ODM factories often already have certifications (CE, FCC, RoHS) for their platforms, easing market entry for the brand in Europe and America.
  • Low entry barrier: building a brand requires minimal capital (orders from 100–300 units) and marketing efforts.

Thus, ODM has become a “brand factory,” enabling hundreds of companies worldwide to sell technically identical products under different names.

5. Intellectual Property: Who Owns Drawings and Firmware?

One key question when choosing a model is intellectual property (IP) rights. In OEM, IP belongs entirely to the customer: they own the drawings, source code for firmware, and design. The manufacturer receives only a license to manufacture. In ODM, the design belongs to the manufacturer, and the brand cannot transfer it to another factory without the developer’s consent. This limits future freedom to choose a supplier. In OBM, all rights are fully owned by the brand.

For e‑scooter brands aiming to create a unique product and avoid dependence on a single ODM supplier, it is worthwhile to invest in their own development and use an OEM arrangement. However, in the early stages, many prefer ODM to enter the market quickly and minimize risks.

Contracts with ODM factories should clearly specify terms for transferring or buying out rights to drawings, firmware, and tooling. Without this, a brand may find itself in a situation where the factory sells the same platform to a competitor or refuses to make even minor changes.

6. Quality Control and Responsibility

In OEM, the brand usually defines the quality control system, conducts production audits, and bears ultimate responsibility for the product’s compliance with stated specifications. In ODM, the manufacturer may have its own testing protocols, but the brand must verify their adequacy. In any case, final responsibility to the consumer and regulators lies with the brand, so even under ODM, the customer must have quality control competencies.

In the e‑scooter segment, quality is critical: the reliability of the battery and brakes directly affects user safety. Therefore, prudent brands insist on pre‑shipment inspection (PSI) for each batch and conduct their own tests on samples before launch.

7. Logistics, Volumes, and Pricing

ODM manufacturers operate with minimum order quantities (MOQ). For e‑scooters, MOQ is typically 100–500 units for a base model, and for exclusive colors and packaging, it may be 1,000–2,000 units. The larger the order, the lower the unit cost. Brands often combine orders of several models to reach volume targets.

The price the brand pays for a scooter consists of component costs, factory labor, logistics (ocean freight, insurance, customs clearance), and the ODM manufacturer’s markup. The brand then adds its own margin, marketing expenses, and warranty service costs. Differences in markups and market positioning explain why two seemingly identical scooters can have different retail prices.

8. Rebranding as a Renewal Strategy

Rebranding is the process of changing a product’s visual identity, positioning, and sometimes functionality to refresh its market perception. In the ODM context, rebranding often is limited to changing logos, colors, and packaging. However, deeper forms exist: the brand may order firmware modifications from the ODM (e.g., increasing top speed, changing riding modes), install higher‑grade components (better brakes, shock absorbers), and even request exclusive body design. Such strategies help differentiate from competitors using the same base platform.

Example: Xiaomi uses ODM developments for several of its budget e‑scooter models, but when launching sub‑brands (such as Ninebot), it applies rebranding, changing not only appearance but also software, creating the impression of a separate product with different consumer features.

9. Practical Recommendations for Entrepreneurs

If you are planning to launch your own e‑scooter or e‑bike brand, here are some key steps:

  • Define your strategy: Do you want a unique product (OEM) or are you ready to use a ready‑made ODM platform? For startups, ODM is usually the choice.
  • Choose a reliable ODM partner: Visit the factory, check its reputation, certifications, and warranty terms.
  • Research market analogues: Find out what models are already sold under other brands to avoid direct cloning without differentiation.
  • Draft a comprehensive contract: Include clauses on firmware rights, model exclusivity (for a certain period or territory), and procedures for defective units.
  • Plan volumes: Consider MOQ, seasonality, and logistics lead times (sea freight may take 4–8 weeks).
  • Do not skimp on testing: Conduct independent tests on samples, especially batteries and braking systems.
  • Develop a recognizable brand: Even if the product is technically not unique, quality design, packaging, service, and marketing build loyalty.

10. Conclusion

The phenomenon of identical e‑scooters and e‑bikes appearing under different brands is a direct result of global specialization, where design‑and‑manufacture factories (ODM) become suppliers of ready‑made platforms, while brands focus on marketing, distribution, and after‑sales service. This model allows new models to reach the market quickly, lowers the entry barrier for new players, and makes products more affordable for consumers. However, it also creates risks of low differentiation and intense price competition.

Understanding the differences between OEM, ODM, OBM, EMS, CM, and Private Label enables entrepreneurs to make informed choices about their path: from simple rebranding of ready‑made solutions to full control over design and production. Each model has its advantages and disadvantages, and the choice should align with strategic goals, resources, and long‑term vision.

In the micromobility industry, where component standardization has reached a high level, ODM remains the dominant model. However, brands seeking sustainable competitive advantage are increasingly investing in their own developments, exclusive firmware, and unique design to break out of the “gray zone” of identical products.

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