Ride Sharing Scooters: The Future of Urban Transport

Although ride sharing companies have brought about a paradigm shift in urban transportation, many commuters are still struggling to solve their last mile problem: a distance too far to walk and too short to drive. This is where the role of scooter sharing platform comes into play and it is really shaking the contemporary urban transport. Scooter ride sharing is expected to boom in cities with high population density.

With scooter sharing, users can be part of the electric revolution as more than 92% of shared scooters are electric today. Finding a parking spot is usually quick and easy. In short, shared scooters are environmentally friendly, convenient and easy to use, create less congestion, are cheap and fun to ride, while at the same time they present an attractive business opportunity for operators.

Scope of Scooter Sharing

  • Ride sharing
  • Online food delivery

Driver for Business Growth 

  • Increased adoption of e-mobility
  • Tax concession on eco-friendly vehicles
  • Growing concern for carbon emission in environment
  • Development of smart cities
  • Low maintenance-eliminating periodic servicing; 85% cheaper than traditional scooters

Worldwide Stats

  • 8 km per ride. 30 % of all bookings end within half a kilometer from the trip origin and are thus candidates for a round-trip usage context
  • 34 minutes per ride as a global average
  • $3.4 rental

Cost to Share e-Scooter

  • $1 per ride and $0.15 per minute (Brid); average $2 to $3 in revenue from each ride.
  • This price compares favorably to single rides on existing bike-share systems, such as Breeze Bikes ($3.50 for 30 minutes) or Metro Bikes ($3.50 for each trip of 30 minutes or under and then $3.50 per additional 30 minutes), though both bike systems have membership plans that make the per-ride cost more affordable.

South Korean Perspective 

Rideshare isn’t really prevalent in Korea except for luxury cars. Kakaotaxi is probably the closest. Most people just hail taxis using Kakaotaxi. Moreover, normal taxi fare is less than that of UberBlack. Moreover, subway and city transportation system is highly developed and cheaper, starting at $1 or so. In ride-sharing app, the drivers can see the destination and may not accept your ride if it’s too close or far. Moreover, there is continuous pressure from local taxi union to stop ride-sharing platform. In this circumstance, scooter rider sharing can be an opportunistic solution for ride-sharing companies in densely populated cities.

Moreover, the government is getting environment conscious and increasingly encouraging the use of electric vehicle. The Seoul Metropolitan Government will gradually increase the number of e-scooters from 500 to 4,700 by 2025. Here pricing will also get cheaper and no direct completion will be faced from local taxi companies. Furthermore, existing ride-sharing operators provide service in slots like 5 am to 10 am & 5 pm to 2 am. The rest of the time can be used by scooter sharing operators.

Competition

  • Kakao Mobility: Kakao Mobility, the most popular online taxi-hailing and parking service company, is going to buy Luxi, a ride-sharing startup of 4 million users, for $23.3 million.
  • Korea scooter tours: It provides conventional scooter and bike sharing service in Seoul, price starting from $80/day.
  • Trazy.com: It offers online booking for e-scooters for 40-60 minutes in Jeju area, price starting from $8.7.
  • Gbike: A personal smart mobility sharing platform in korea; received $500K funding. Their service includes bike and scooter sharing with IT services specialized for Korean market. Pricing starts from $0.18/10 minutes excluding mountain areas.

Market Size in South Korea

The number of traditional ridesharing passengers will grow from 4.0 million in 2018 to 5.0 million by 2022.

  1. Online Delivery: Users will grow from 16 million in 2018 to 24.8 million in 2022 [Source: Statista]
  2. Ridesharing: Individual users will grow from 41.7 million to 43 million in 2022 [Number of Urban population]
  3. Urban Population: 41.7 million
  4. 6 % of the population is in urban and the median age in South Korea is 41.3 years.

Year

Total Users in Million Travel Frequency Revenue in Million ($3.4/ride)
2018 58 1.35 $ 264.83
2022 70 1.35

$ 311.20

 

Scooter sharing is getting popular day by day across the world , evident from the introduction of scooter ride sharing by  Uber. In the US, there exists stiff competition among market participants like Bird, Lime, Muving etc. to grab the market share.