Can Micro-mobility Kick Uber and Lyft out?
Highlights
Transportation covering a distance of 5 miles or less
50 - 60 percent of today's total passenger miles are less than 5 miles
Market Share of micro-mobility could reach 300 - 500 billion by 2030
An E- Scooter can only be economical after 4 month
It takes about 3 to 4 hours to charge an E scooters
Market Size
Micro-mobility? Lime or lemon's
Any commute less than 5 miles comes under micro-mobility. 50 - 60 percent of today's total passenger miles are less than 5 miles range. If so will Uber and Lyft face competition from players in this industry? is this even a sustainable business model? Will these companies ever be profitable?
Market growth
The market has already attracted a strong customer with two to three times faster than either car-sharing or ride-hailing. Share micro-mobility could reach 300 - 500 billion by 2030 for regions China, Europe, and the United States.
Current Players
E-Scooter Economics
An E- Scooter can only be economical after 4 months. The technology and of E-scooter is very recent and this needs a lot of innovation to make them more robust and reliable. The average lifespan of a scooter was 28.8 days, The median lifespan was 26 days, The average vehicle went 163.2 miles over 92 trips during its lifetime. When you look at these stats this is never a profitable business, in fact, the companies are bearing a loss of 300 per vehicle. It's true that these companies cannot break even if the technology does not evolve and this challenges the micro-mobility industry.
SWOT
Strengths
Eco-friendly
Low cost of ownership
Cheaper to run
Less traffic congestion
Weaknesses
Charging time
Recharging Infrastructure
Safety
Opportunities
Government subsidy
Increasing Fuel cost
Treats
Competition form electric automobile and other alternative fuels
Rise in cost of electricity
Challenges
Charging times & Costs: It takes about 3 to 4 hours to charge this E scooters or cycles, which will make them unavailable during that time period. Also, there is a cost attributed in charging and distributing these Scooters or cycles
The durability of Vehicles: The technology or product has not evolved enough to have robust enough vehicles that can at least a couple for years.
City Road Infrastructure, Misuse Causing Congestion: preset road infrastructure with cities has limited accommodation for this kind of vehicles, as a result, you see a lot of congestion of these Vehicles
Pedestrian and Rider safety: More and more people use micro-mobility services but there are not many safety measures enforced by the government.
Solutions
Increase the durability of vehicles.
Reduce charging time by introducing a battery swapping system.
Introduce remote diagnosis for the vehicles.
Introduce subscription services.
Lobby with governments to build new road infrastructure.
Increase safety measures.
Innovation in building better micro-mobility vehicles.
Partner with Corporate organizations.
Conclusion
This is a very attractive industry that has a large market size and a lot of players. As more people move towards cities and close to workplaces there is great opportunity for companies like Lime, bird to capitalize on this market. I would say companies that would overcome challenges like the durability of vehicles, charging, safety and accommodation on city roads are more likely to succeed in the race against capturing the micro-mobility market. Companies like Uber and Lyft have invested heavily in these companies trying to enter this space. The micro-mobility industry can disrupt the car share industry soon, but we are not there yet there are still many unturned stones and a long way to go for companies like Lime and Bird.
Sources