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2024 Update Coming Soon Published- Dec 2022 Number Of Pages -100
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 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 the scooter 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 infographic at the bottom of the 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 that procured investment thereby increasing the market to more cities and regions.
With the Cosmo X’s integration of several IoT sensors, users may take advantage of the car’s GPS tracking and locking capabilities as well as real-time status information on the battery and speed. The first electric scooter that can be customized and used to express personal style.
Veo has been active in the North American shared mobility sector and has established a reputation for its high-quality, domestically designed and produced scooters and bikes. In a market dominated by third-party, off-the-shelf scooters, Veo concentrates on designing and producing long-lasting, cutting-edge automobiles.
The Striemo has been designed to provide user comfort. To create a micromobility vehicle that enables people to ride with confidence and consideration for their surroundings, by utilizing the expertise in delivering a stress-free, steady, and natural driving experience.
The key characteristics of Striemo are self-balancing and high stability – Striemo self-balances even when stopped due to the innovative Balance Assist System, which makes use of instinctive human reactions. This means that the user can ride at both very slow and cruising speeds with little chance of overbalancing.
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 and 2021.
If ride-hailing taxis are meant to fill the gap/white space between car ownership and public transport. Micromobility can fill a lot of white space between public transport, short-haul trips, and most importantly – Ride-hailing taxis. The micromobility 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 learn more
Lime, Tier, and VOI have claimed to have profitable months, the first 3 in this business. Lime doesn’t plan to fundraise as they are reinvesting their profits to deliver new hardware and new modes and expanding to new cities across Europe and beyond.
Data shows investors have injected $371 million into U.S. micromobility firms in 2020, while European rivals have raised $687 million. Europe appears to be the target market for micromobility 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 the 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 the sustainability of micromobility vehicles and operations. The fund’s investment priorities include expanded parking options that reduce pavement clutter to ensure cities remain accessible, as well as 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 vehicles for private usage and investing in R&D for these too.
Appless 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 utilization. Therefore, one has to read the market needs and growth signs very minutely before making any claim about the micromobility market’s future growth. To learn more about the 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 providing Helbiz with an initial fleet of 2,500 seated e-mobility vehicles to launch in four American cities and two Italian “innovation centers.” 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 emphasized that there was “little overlap of city permissions” between the two businesses. The Wheel’s 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 the 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 a higher scale and less than 25% average utilization. A very common example is that of annual gym membership, where only 1 in five members turns up regularly. A reasonably priced subscription plan and an expensive short-term plan can result in lower customer acquisition costs 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. ber 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 as 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 7 am and 9 am, and from 5 pm to 7 pm, with the average price per trip now at €2.00.
The subscription model will also play well for various users who have a fixed route for the usage of micromobility. 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.
The competitive landscape in the global micromobility market is extremely regionalized. There is no clear winner so far but players with bigger scales 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.
