Micromobility Market to Witness Mounting Growth in Approaching Time

Posted June 9, 2022 by PuneetShah

The lower commuting cost attached to bike, scooter, and kick scooter sharing services is expected to propel the micromobility market at a robust CAGR of 19.9%
In comparison to taxi, ride sharing, and ride hailing services, bike sharing, scooter sharing, and kick scooter sharing services are available at a lower price, owing to which the latter is becoming extremely popular in urban areas around the world. Dockless and station-based bike sharing services, multimodal and first- and last-mile kick scooter sharing services, and round-trip and one-way scooter sharing services are being offered by new-age shared mobility companies to provide cost-effective transportation to daily commuters.

Thus, the lower commuting cost attached to bike, scooter, and kick scooter sharing services is expected to propel the micromobility market at a robust CAGR of 19.9% during 2019–2025. The market was valued at $3.0 billion in 2018, and it is projected to generate around $9.8 billion revenue by 2025. For instance, most kick scooter sharing companies charge an initial cost of $1 per trip and an additional $0.15 per minute of travel, on average, which is a lot cheaper than taxi, rental, and ride sharing services.

Moreover, the inflow of hefty investments in startups offering micromobility solutions is widening the availability of these services. For instance, in 2018, Balderton Capital, a London-based venture capital firm, invested $50 million in VOI Technology AB, a Swedish kick scooter sharing company. Likewise, in 2018, Tier Mobility, a Berlin-based electric kick scooter sharing company, raised $29 million in investments to expand its presence across the European region.

Therefore, the micromobility market is moderately fragmented, due to the presence of a significant number of startups. Apart from raising investments, the major players are focusing on facility expansions, product launches, and mergers and acquisitions, thus further intensifying the competition. For example, in October 2019, Uber and Cityscoot entered into a partnership to integrate Cityscoot’s scooter sharing service booking platform into the Uber app. Further, in July 2019, Bird unveiled its plans to introduce its largest European hub in Paris and hire over 1,000 employees by 2021.

According to P&S Intelligence, the Asia-Pacific (APAC) region was the largest user of bike sharing services in the preceding years due to the presence of leading companies offering these services, such as Hello-Bike, ofo, and Mobike. Additionally, the lower cost of these mobility services as compared to others accelerates their adoption in the region. Whereas, the European region emerged as the largest user of scooter sharing services in the recent past, where Paris and Madrid were their most-prominent users.

Further, in recent years, the North American micromobility market has displayed substantial growth due to the early entry of major players in the region. North America was the largest market for kick scooter sharing services during the historical period (2017–2018) due to the presence of industry pioneers Bird and Lime. Furthermore, the region is observing a steady adoption of scooter sharing and bike sharing services, owing to which it has become lucrative for market players.

Thus, the surging investments being made in startups offering micromobility services and plunging cost of these solutions will encourage more people to opt for them.
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Tags asia micromobility market , micromobility market , micromobility market 2022 , micromobility market demand , micromobility market outlook , micromobility market share , micromobility market trend
Last Updated June 9, 2022