E-scooter sharing- Why do we call it sharing and why not rental? The answer is, it is another extension of the fast growing” shared economy”. A rental, typically happens for a minimum hour/day/week, whereas sharing happens only for a trip.
2018, has been the year of scooter sharing. The year saw, many ride- hailing and bike sharing operators foraying in this market.
The biggest growth driver for E-scooters is the blistering growth of on-demand economy, highly congested and polluted urban cities and its low physical footprint with zero carbon footprint. They also have an advantage over on-demand taxi and bike sharing, owing to low cost and shorter trip duration.
But not everything is in place for e-scooter sharing system. There are many regulatory flaws in it, especially in US. For example, in some cities, the DMV website deems motorized scooters illegal. Many cities have already cracked down on e-bikes.
E-scooters have created polarized opinions in our society. Although, they are good for our urban, polluted cities, they still require sustainable charging infrastructure and separate pathways, which is rare to find.
MARKET SIZING AND FORECAST
To succeed in an on-demand economy, density is the key. All on-demand mobility providers started from upscale, dense cities, and the same can be said about e-scooter sharing operators.
There are more than 100,000 scooters in 90+ cities cumulatively in US and Europe combined. The standard rental charges in US are $1 for unlock and 15 cents per minute. The cost of a 2 mile trip could be in the range of $2.5-$3.5, which is almost double that of bike sharing. Please refer to our Bike sharing Market in US and Europe report to know more about bike sharing.
The electric scooter sharing market is estimated at $XX Million, growing at –% CAGR till 2024.
In US, E-scooters are aimed at giving a tough fight to the king of transit- car.US has a car penetration of 800 per 1000 inhabitants and more than 30% households have multiple cars. Now, in a country with per capita income of $50,000, majority of the population can certainly buy an e-scooter instead of renting it.
So, what is the value add of these e-scooter sharing companies? In one word “convenience”. Buying a scooter, will mean carrying it to your destination and recharging it, as and when battery is low. And, this is where sharing comes in handy. A 2-mile trip will cost ~$3 and the user can drop it anywhere, now that is a big plus. No worrying about parking, recharging and maintenance, just use and pay per trip.
As of Dec`18, Paris appears to be the hub of e-scooter sharing in Europe,followed by Berlin. Lime, Bird and Taxify have already launched in Paris.UK is expected to be the next hotspot for e-scooter sharing development as both Lime and Bird have set their sights on launching operations
The sharing economy start-ups are mostly fuelled by VC(venture capital) money, as we have elaborated in our Bike and Scooter sharing startups report. Their first target is always acquiring new customers(gaining scale), by putting more capital,keeping profitability aside. Bird and Lime have accumulated funding to the tune of $1.48 Billion by April`19.Bird is now valued at ~$2 Billion and is the first start-up to get there in less than a year into starting its operation.
Fundamentally, there are three type of players active in the scooter sharing market. The most common being on-demand taxi providers like Uber,Lyft, Taxify and Grab. The second category being that of bike sharing providers, who have now broadened their offerings to include e-scooters like Jump and Lime. The third being, e-scooter only sharing providers like Bird, E-cooltra and Scoot.
We expect, new entrants in the scooter sharing market. Ford has already acquired Spin and Uber may buy Lime or Bird. It won’t be surprising to see many more big-ticket acquisitions, both in US and Europe.
- City scoot
THIS REPORT WILL ANSWER FOLLOWING QUESTIONS
1. The market size (both volume and value) of e scooter sharing market in 2019-2024 and every year in between?
2. Market segmented by scooter type (electric kick scooter and smart scooter) and Geography (US and Europe)
3. E-scooter sharing users profile
4. What will last mile mobility solution of future look like?
5. The funding raised by E-scooter sharing start-ups, segmented by stage
6. The impact of E-scooter sharing on e-scooter manufacturing industry
7. The role of block chain in e-scooter sharing
8. The role of capital in e-scooter sharing services expansion
9. Market share of e-scooter sharing companies in US and Europe
10. Can e-scooter sharing displace car-pooling and car sharing, if yes then to which extent
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|4||Legislations impacting scooter sharing in US and Europe, by city||16-20|
|6||Cash flow and burn rate of scooter sharing start-ups||24-26|
|7||Opportunities and risks with the sharing business model||27-29|
|8||Market Size ,Dynamics and Forecast By Geography||31-40|
|9||Market Size ,Dynamics and Forecast By Scooter type||41-50|
|12||Unmet needs and Market Opportunity for suppliers||75-77|