Exploring the Micromobility Industry
The micromobility industry is one of the most fascinating aspects of the broader tech ecosystem, with the majority of vehicles involved operating via electric power and apps. When the pandemic hit and the number of passenger kilometers traveled declined more than 50 percent worldwide, the use of micromobility solutions drastically decreased. Although this caused many to readjust rather bullish projections for the industry, there remains a promising future for micromobility.
What are micomobility devices?
Although there is no ubiquitously accepted definition, micromobility typically refers to the modes of transportation that are low speed (below 25 kilometers per hour), small, lightweight, and used for short distance trips. This primarily includes electric bicycles and standing e-scooters, which can be either shared or personally owned. Shared micro mobility is a multi-billion-dollar industry encompassing companies such as Mobike, Hello Inc., Bird and Lime. In 2019, McKinsey models predicted that the industry would be a $300 billion to $500 billion market by 2030. However, when the pandemic hit and the number of passenger kilometers traveled declined more than 50 percent worldwide, the use of micromobiity solutions drastically declined
Is micromobility here to stay?
YES. The short-term consequences of the COVID-19 pandemic on the micromobility industry have been profound, with micromobility use declining as people reassess their transportation options. Such was the case with most travel and transportation-related sectors in the past two years. Measures to control the pandemic including shelter-at-home orders and travel restrictions caused models to scale down their projections for the industry. However, as we progress along a u-shaped recovery curve, there emerges potential for upside in a post-pandemic future. Some even predict that this industry will emerge stronger and more profitable than before.
Many consumer surveys indicate a marginal increase in willingness to use micromoblity on a regular basis — this includes a 9 percent increase in private micromobility solutions and a 12 percent increase in shared micrmobility. These trends point to an optimistic future with a return in usage to pre-COVID levels.
Who uses micromobility?
Although micromobility is readily accessible to all, ridership skews toward younger demographics and preference is divided along age lines. For the category “walking or biking with private bicycle,” usage is evenly split into thirds amongst 18–34 year-olds, 35–54 year-olds, and 55–70 year-olds. In contrast, for shared micromobility usage, the distribution favors young people: 51% of reported riders are 18–34, 33% are 35–54, and 16% are 55–70.
How does micomobility impact the climate?
E-bikes and e-scooters are a viable alternative to high-emitting modes of transportation such as fuel-engine cars and motorcycles, consequently helping to improve local air quality and reducing negative environmental outcomes. Although micrombility solutions like e-bikes do require charging and consume electricity, they emit one third the amount of PM per passenger km as motorcycles and half the amount of cars. Broadly speaking, micromobility solutions are far better for the environment than traditional modes of transportation and electric vehicles use less energy per 100 km than their gasoline-enabled counterparts.
Who is leading this space right now?
Lime is one of the best known shared micromobility companies. Founded in 2017 and headquartered in San Francisco, they offer access to electric kick-scooters and bike-sharing services. The company partners with cities to deploy electric bikes and scooters enabled with GPS and self-activating locks. Consequently, their transportation alternatives are accessible, affordable, reliable, and sustainable — they even track the carbon emissions saved with every ride. Lime costs $1 to unlock and $0.15/min to ride. As of May 2020, the company is valued at $510 million and has raised a total of $ $1.5 billion. The other dominant company in the industry — and Lime’s most relevant competitor — is Bird, another California-based micromobility company that partners with cities to offer shared micromobility solutions.
