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Published- Nov 2022
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Private car ownership has been the most common and preferred way of moving people from point A to point B. But, over the past few years with the rise of Mobility-as-a-service, even car companies want to be a complete Mobility service provider in order to keep pace with changing consumer behaviour.
It first started with Ride hailing taxis in the US in 2009, moved on to the bike sharing boom in 2016 in China and then scooter sharing boom in 2018 in the US, which took everyone by surprise.
We started tracking the micro mobility market in Q1-2018 and in July 2018 when we first launched our Bike and scooter sharing startups report, $5.7 Billion was already invested in 25 startups by 150+ investors.
A year later, the figure stood at $6.8 Billion and by 2020 it stood at $8.4 Billion 2020, refer to the info-graphic at the bottom of page. In 2020, even after the market was hit by Covid $ 1 B was raised raising the overall investment to $8.4 Billion globally mainly out of USA and Europe. Australia and Asia also had e scooter firms who procured investment thereby increasing the market to more cities and regions.
More than 30 bike and scooter sharing startups have cumulatively raised ~$8.5 Billion between 2016 and June 2021. Bike sharing startups raised ~$5.5 Billion whereas the remaining $3 Billion has been raised by various scooter sharing startups between 2015-June 2021.
If ride hailing taxis are meant to fill the gap/white space between car ownership and public transport. Micro mobility can fill a lot of white space between public transport, short haul trips and the most important – Ride hailing taxis.
The micro mobility market is in a very nascent phase at the moment and its evolution or growth will be subject to regulatory clearance, consumer adoption and additional funding from investors.
E-scooters are already facing the brunt of regulators, read our e-scooter sharing market report to know more about E-scooter sharing. Bike sharing was also thought of as the next big thing in 2017 and even in early 2018, when Ofo and Mobike got funding to the tune of Billion dollars but now Ofo is mulling for bankruptcy and Mobike is facing an uncertain future. Read our Bike sharing report to know more
Lime, Tier and VOI have claimed to have profitable months, first 3 in this business. Lime doesn’t plan to fundraise as they are reinvesting their profits to deliver new hardware, new modes and expanding to new cities across Europe and beyond.
Data shows investors have injected $371 million into U.S. micro mobility firms in 2020, while European rivals have raised $687 million. Europe appears to be the target market for micro mobility firms.
In the US and Europe where E-bikes and E-scooters are getting increasingly popular, India is witnessing a dramatic rise of conventional gasoline powered dockless scooters. Europe and USA also saw a new product introduction in the form of mopeds by Lime across various cities though the response is yet to be known.
Voi Technology announced the launch of the City Innovation Fund – a $3-million commitment to expand parking, improve safety, and advance sustainability of micro mobility vehicles and operations.
The fund’s investment priorities include expanded parking options that reduce pavement clutter to ensure cities remain accessible, as well road safety innovations focusing on novel approaches to infrastructure, rider education, and vehicle technology. In addition, the investment will fund projects that improve the sustainability of operations, including support for research and advocacy.
Firms are also looking at providing their own vehicles for private usage and invested into the R&D for these too. App less riding is also a key element various firms are looking to so that they can increase the utility among non app users which improves overall fleet utilisation.
Therefore, one has to read the market needs and growth signs very minutely before making any claim about micro mobility market future growth.
To know more about Global Electric Skateboard Market, read our report
Helbiz, a micromobility provider, disclosed that it has signed a letter of intent to buy Wheels, a competitor in the market that sells seated scooter versions and has incorporated helmet technology. The “mainly all-stock deal’s” financial details were not made public, but the company said it anticipates completing the acquisition by year’s end.
The company’s objective is “to adapt and grow with profitability at the core of every choice,” according to the statement that the acquisition is “anticipated to quadruple revenue, expand the cities served, enhance margins and cut expenses.” Palella added that the business anticipates becoming profitable in the following 18 months.
In a prior memorandum of understanding signed this year, Wheels and Helbiz announced their intention to work together. Wheels committed to provide Helbiz with an initial fleet of 2,500 seated e-mobility vehicles to launch in four American cities and two Italian “innovation centres.”
The New York-based company Helbiz claims to have 50 permits to sell micromobility vehicles in the United States and Italy. The announcement from Wheels’ CEO emphasised that there was “little overlap of city permissions” between the two businesses. The Wheels footprint spans 12 American cities, four institutions, and 8,000 cars.
This is the biggest question in every industry stakeholder and observer`s mind. How big is the micro mobility market right now and how much bigger it can get in coming years?
Some market reports claim that the annual micro mobility market size could be worth a few hundred Billion dollars in the US and Europe each by 2030.We believe that`s completely inaccurate.
A simple reason behind our belief is that the annual passenger car market in the US and Europe are worth ~$550 and ~$370 Billion respectively where ~17 Million and ~15 Million passenger cars are sold annually. Even if we assume that in the best possible scenario, the user base is 5 times that of a car buyer as it’s a shared solution, the average revenue per rider per annum will not exceed $500.
The total annual revenue will not exceed $50 Billion in respective markets and that is the best possible scenario we are talking about.
To accurately forecast the global micro mobility market, we have analyzed the most popular micro-mobility solutions globally and developed a scenario-based forecast till 2025.
The subscription based business model makes use of higher scale and less than 25% average utilization. A very common example is that of annual gym membership, where only 1 in five members turn up on a regular basis.
A reasonably priced subscription plan and an expensive short term plan can result in lower customer acquisition cost and higher loyalty but it can also push short term customers away.
Uber launched Uber Pass, a $25/month subscription service in the US, which will include free deliveries on Uber Eats, free rides on Uber Jump and discounted rides on Uber and it remains to be seen if other micro mobility operators will go after this model.
Uber offloaded Jump to Lime, but there are multiple firms such as Lyft which will look to integrate all forms of mobility services to increase market share across segments as well increase overall revenue and brand awareness.
Micromobility provider Dott has seen a rapid increase in the number of new e-bike and e-scooter riders in Q1 2022.. The driver behind the surge has been new riders, with an 85% increase in first-time users in the first quarter of 2022 and also there has been a 47% increase in rides per week from January to March.
The average trip distance has also increased by 10% during the three months, up to 2.1km at the end of March. Peak hours for Dott are between 7am and 9am, and from 5pm to 7pm, with the average price per trip now at €2.00.
Subscription model will also play well for various users who have a fixed route for usage of micro mobility . This will include last mile connectivity to and fro work, and transportation around a college campus. Since the vehicles are based on an electric platform, there will be various features that can be easily implemented as well as decreased running costs.
Marketplace Apartments, one of KUHMUTE’s host locations, hosted a celebration for the opening of their Flint network of micro-mobility charging stations. The first multi-modal charging network for electric scooters and other micro-mobility vehicles is provided by KUHMUTE.
The Marketplace Apartments station is the seventh out of a total of 14 installations that will be spread out across Flint. The goal is to plan and construct a charging infrastructure for vehicles other than electric cars.
Three businesses have been chosen by the mayor, Chicago Department of Transportation (CDOT), and Department of Business Affairs and Consumer Protection (BACP) to run shared scooter programmes throughout the city. Later this spring, 3,000 scooters will begin service in the city.
A total of 1,000 scooters will be added to the Divvy bike-share programme, making it the first docked bike and scooter system in the country. Up to three scooter-sharing businesses may now operate in the city thanks to a new business license category that the Chicago City Council approved.
Six different businesses submitted license applications for consideration by the City: Veo, Bird, Helbiz, Spin, Lime, and Spin. The City intends to grant licenses to Lime, Spin, and Superpedestrian following a thorough review. Residents and visitors to Chicago have yet another simple option for choosing active transportation with the scooter program.
One must support micro mobility options like shared bikes and scooters, which offer accessible ways to get around Chicago without a car as transportation costs rise.
Segway-Ninebot, the world’s leading micromobility and robotics company, is proud to present its latest advancements to satisfy the changing needs of modern transportation. The new Segway GT and P series, as well as the E110A, combine performance with dependability and sustainability, allowing riders to commute in comfort and style.
Simultaneously, Segway released the Shredder Kit, which allows Ninebot S, Ninebot S Pro, and Ninebot S MAX owners to customise their rides.
The Segway GT-series e-KickScooters are the ideal choice in small, high-performance mobility for commuters and adventurers alike. The GT1 and GT2 are Segway’s supercars, with top speeds of 37.3 mph and 43.5 mph, respectively, making them the fastest in the company’s product line.
The electric motors in the GT-series, like the turbocharged engines in supercars, provide exceptional acceleration. The GT1 takes 7.5 seconds to reach 30 mph from a standstill, while the GT2 takes only 3.9 seconds.
Bird has launched the Bird Bike, an e-bike. The goal of the product is to make environmentally-friendly transportation solutions available to everyone. The Bird Bike will have features like a Bafang electric engine that can travel up to 50 miles (80 kilometers) on a single charge. It has come with a 36v battery that can be easily removed for a charge.
The Gates Carbon Belt Drive is easy to maintain, and no-stretch carbon cable technology will offer efficient power with every pedal. According to local rules, cyclists in the EU and the UK can easily get 250W of continuous rated power, while riders in the US can get 500W of electric assistance.
Veo unveiled the Apollo Class II electric bike, which has space for two riders or extra cargo. The Apollo addresses two needs: the ability for two people to ride one vehicle and the need to transport goods using a cargo storage system, in order to increase ridership and decrease reliance on gas-powered vehicles.
With the Apollo’s throttle-assist motor, riders of all sizes and abilities can travel long distances without pedalling. The throttle offers a boost to accelerate from a stopped position and helps with uphill travel or carrying cargo. According to Veo’s ridership statistics, the first-generation Cosmo-e electric bike receives four times as many rides daily as the company’s electric pedal-assist bikes.
The competitive landscape in the global micro mobility market is extremely regionalized. There is no clear winner so far but players with bigger scale like Lime have an edge over their peers.
The average age of companies(startups) is less than 3 years. In 2019 alone these companies raised $1.2 Billion in funding and 99% of that was raised by scooter sharing startups.
In 2020 too they raised $1 B for expansion purposes and R&D. VOI raised $160 M, TIER $ 250 M, and Bolt raised $ 180 M in Q4 of 2020 for mainly expansion. IN 2021, ~150 M was raised. $85 Million was raised by Dott to expand beyond e-scooters with a new bike-sharing service.
Lime is present in 56 cities in the USA and 87 cities across the world outside the USA. Bird is present in 54 cities across the USA and 31 cities across the world. Tier is present in 81 cities in Europe and 1 city in Asia. Bolt is present in 74 cities in Africa, 178 cities in Europe and 24 cities in the rest of the world.
Striemo Inc., a startup founded primarily by Honda engineers in August 2021 through Honda’s new business creation program IGNITION. Striemo Inc. is developing Striemo, an electric micro mobility vehicle that provides a new mobility experience with user comfort front and center, slated for launch by the end of 2022
Striemo will go on sale in Japan before the end of 2022, both for the general public and for enterprise applications in commercial buildings, airports, warehouses, construction sites, and other locations. In preparation for the coming regulations allowing sidewalk riding, we are pushing forward development to take advantage of Striemo’s expertise in providing stability at walking speed
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