E-SCOOTER SHARING MARKET

KEY FINDINGS

  1. As of March 2020, E-scooter sharing services are now available in 177 US and European cities, down from 223 cities in Dec 2019
  2. In US, 38 out of 80 cities (~48%)  which had e-scooter sharing as of March 2020, belonged to just 6 states i.e. California, Texas, Florida, Virginia, Arizona and North Carolina.
  3. Due to higher upfront licensing costs per scooter and reduction in the max fleet size allowed per operator in many cities, e-scooter sharing operators have stopped expansion and started scaling down their fleet size in many US cities
  4. Lime- the global market leader in E-scooter sharing has significantly scaled down its US presence in past 3 months i.e. from 90 cities in Dec 2019, to 54 cities in March 2020
  5. About 20-22% of the e-scooter sharing activity in US is centred in and around California, reason being high population density ,tech savvy population, declining car ownership and zero emission policies
  6. In micro-mobility market, Bike sharing start-ups got more than 90% of total funding till H1-2018 ,but between H1-2018 to 2019 scooter sharing operators became the top choice for investors
  7. In second half of 2019, the e-scooter sharing frenzy has shifted from US to Europe and e-scooter sharing services were  available in 112 cities(Nov 2019) as compared to just 32 in March 2019 but reduced to 97 cities in March 2020.
  8. As of March 2020, Madrid, Paris and Berlin are the top 3 European cities in terms of E-scooter sharing fleet size and utilization
  9. Tier has the widest coverage pan-Europe in 54 cities. It added 16 cities in Dec 2019-March 2020 period. In the same period, Lime shut down its operations in 21 European cities and is now present only in 35 European cities.

 

 

INTRODUCTION

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.

If 2017 was the year of bike-sharing gaining popularity, the same can be said for 2018-H1 2019 . The year 2018 saw many ride- hailing, bike sharing operators and many new European startups foraying in the scooter sharing market and the decline of bike sharing market. To know more about both bike and scooter sharing market, read our Global Micromobility market report

 

DIFFERENCE BETWEEN BIKE SHARING AND SCOOTER SHARING 

Infographic: scooter sharing market forecast, E-scooter sharing market size

MARKET DYNAMICS

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`s right for E-scooter sharing operators. Many city planning authorities are concerned about the safety of riders and pedestrians. Sidewalk clutter is being sorted in many cities by creating specific drop-off zones but it is still far from over.

Aggressive funding by VCs resulted in solid expansion across geographies in 2018-H1 2019 but the very short lifespan of scooters were and still are a major threat to profitability. Post H1-2019, there has been a rationalization of operators`s expansion plans as investors look for a concrete path to profitability.

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 SIZE 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 150,000 scooters in 177 cities cumulatively in US and Europe available for sharing. The standard rental charges in US are $1 for unlock and 15 cents per minute. The cost of a 1-1.5 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 in US and Europe is estimated at $704 Million in 2019, growing at 25% CAGR till 2024.

 

Infographic : E-Scooter Sharing Market, Global scooter sharing market report 2019, Scooter sharing market size

US

In US, E-scooter sharing services were aimed at giving a tough fight to the king of transit- car. But, after analyzing the e-scooter sharing services for more than 18 months, we can safely conclude as of March 2020 that they had very limited effect on car sales as well as miles traveled in US. In fact, the e-scooter sharing operators have tapped more of car-less population who either walk/take a bus/ take a taxi/ share a ride to go their destination.

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.

The growth of the e-scooter sharing market value will clearly depend on three major factors a) expansion in number of cities b) increase in number of scooters per city c) increase in number of rides per scooter per day. Especially, now that many American cities have a cap on total number of scooters that could be deployed in a city, “unit economics” is more important than ever.

EUROPE

As of March 2020, Paris and Berlin appear to be the hub of e-scooter sharing in Europe,followed by Madrid and Stockholm. 

E-scooter sharing in Europe is now only available in 97 cities as compared to 112 cities in Dec 2019.Europe`s e-scooter sharing market comprises larger number of European players, but with smaller fleet sizes. US based Lime and Bird are present  in 63 unique cities as compared to just 22 in March 2019.As per Lime, Paris residents travel on an avg 6 miles per trip, generating highest revenue per ride globally.

Germany legalized the use of e-scooters on roads and bicycle paths in May 2019, leading to battle among European and U.S. startups to roll out sharing services in Europe’s biggest economy. Berlin based Tier is among the biggest players in Europe and has recently announced that it will also offer E-smart scooter sharing services. It is now present in 54 cities, significantly higher than both Bird and Lime.

 

The scooter sharing market size in US and Europe is 15-20X bigger than Asia. To know more about Asian market, read our report titled Scooter sharing Market in Asia 2019-2024

FUNDING RAISED BY BIKE AND SCOOTER SHARING STARTUPS TILL FEB-2020

         

 

More than 30 bike and scooter sharing startups have cumulatively raised ~$7.7 Billion between 2016 and Feb 2020. Bike sharing startups raised ~$5 Billion whereas the remaining $2.7 Billion has been raised by various scooter sharing startups between 2018-Feb 2020.

NEW E- SCOOTERS DEVELOPED FOR SHARING

Manufacturer/operator Changes in new scooter Biggest area of improvement
Lime Increased wheel size from older model to 10” now, 20% more efficient and smarter A new LED display which shows riders when they enter sidewalks, no parking zone and improperly park the scooters
Skip 615Wh swappable battery along with internal sensors Based on a modular structure the lifecycle is now increased and has airless tires
WHEELS All new product The seated design gives riders a lower center of gravity, which can help them to feel more stable due to largest, 14” diameter wheels
Segway- Ninebot AI driven scooter with remote control feature using cloud technology. Uses ultrasonic sensor and camera to self-drive, can also self-drive to a docking station is among the most advanced scooters developed in recent times

 

 

COMPETITIVE LANDSCAPE

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 Nov`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.

In US, the competitive landscape is extremely consolidated where Bird and Lime account for a major chunk of the market. Europe on the other hand is comparatively fragmented market with local players like Tier and VOI are giving a tough fight to the American duo- Lime and Bird.

The first leg of e-scooter sharing race among startups was all about gaining scale but 2020 onward it will be all about cutting costs, burning less capital and achieve profitability. There have been significant internal clampdown by all operators in terms of their presence and cash outflow and even laying off employees.

Among smart scooter(moped) sharing operators, Paris based City scoot raised ~$26 Million in Feb 2020 to expand in two more European cities and take its fleet size to 8,000 scooters. Uber integrated its offerings with City scoot scooters in Paris from October 2019 

We expect new entrants in the scooter sharing market. Ford acquired Spin and is planning Europe entry(via Germany) as announced in Feb 2020 .Uber may buy Lime or Bird. It won’t be surprising to see many more big-ticket acquisitions, both in US and Europe.

COMPANIES PROFILED
  1. Lime
  2. Spin
  3. Bird
  4. Scoot
  5. Yugo
  6. E-cooltra
  7. Loop
  8. Skip
  9. City scoot
  10. Coup
  11. VOI
  12. Dott
  13. Tier Mobility
THIS REPORT WILL ANSWER FOLLOWING QUESTIONS
  1. The market size (both volume-rides and value-$Million) 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. Detail on E-scooters used in sharing services and fleet breakup by major cities in US and Europe
  5. Funding raised by E-scooter sharing start-ups, segmented by stage
  6. The impact of E-scooter sharing on e-scooter manufacturing industry
  7. Role of block chain and capital in e-scooter sharing services expansion
  8. Market share of e-scooter sharing companies in US and Europe respectively
  9. Can e-scooter sharing displace car-pooling and car sharing, if yes then to which extent
  10. Legislations in cities detailing cap on maximum fleet size
  11. Average revenue per ride per day in US and Europe
  12. Impact of investment by tech giants like Google in Lime on scooter sharing market
  13. How e-scooter sharing will disrupt /displace bike sharing
  14. Which 3 European cities will account for >50% of E-scooter sharing market?
  15. Why kick scooters have an edge over smart scooters?

 

To enquire about the report write to us at sales@mobilityforesights.com

1 Market Segmentation 4
2 Executive Summary 8-11
3 Introduction 12-17
4 Legislations impacting scooter sharing in US and Europe, by city 18-21
5 E-scooter Sharing Users And Their Transportation Needs 22-23
6 Cash flow and burn rate of scooter sharing start-ups 24-26
7 Opportunities and risks with sharing business model 27-30
8 Assessment Of Trips Made By Bike And Scooter Sharing Users 31-33
9 Competition from E-bike sharing 34-36
10 Opportunity for IOT sensor and GPS tracker vendors 37-39
11 About E-scooter sharing users and their daily transportation needs 40-42
12 New scooter development globally 43-49
13 Role of e-scooter manufacturers in scooter sharing market 51-53
14 Market Size and Forecast, by Geography 54-72
15 Market Size and Forecast, by scooter type 73-80
16 Competitive Landscape 82
17 Funding and investor details 83
18 Market share of major vendors in US and Europe 84
20 Company Profiles 86-110
21 Conclusion 111-112
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