scooter rental market Paving Its Way with Sustainability is in Trends by Shared Mobility Growth
The scooter rental market has witnessed significant growth over the past few years. Electric scooters provide users with an affordable, fun, and eco-friendly transportation alternative for making short-distance trips within urban areas. The rising concerns regarding pollution, traffic congestion levels, and need for micro-mobility have boosted the demand for shared electric scooter systems globally. Dockless electric scooters are connected to smartphone applications that allow users to locate, rent and pay for the scooters, making them highly convenient to rent.
The global scooter rental market is estimated to be valued at USD 2.84 Billion in 2024 and is expected to reach USD 8.15 Billion by 2031, exhibiting a compound annual growth rate (CAGR) of 16.2% from 2024 to 2031.
Key Takeaways
Key players operating in the Scooter Rental market are Bird Rides, Inc., Bolt, Circ, Dott, Lime, LimeBike, Lyft, Inc., Massive Mobility, Pony, Razor USA LLC, Scoot Networks, Spin, Superpedestrian, TIER Mobility, and Voi Technology. Key players in the market are focusing on expanding their operational footprints and stations in new regions to tap into the vast opportunities.For instance, Bird launched shared electric scooters in over 100 cities across Europe, the Middle East, and Africa.
The growing Scooter Rental Market Demand for affordable and environment-friendly mobility options is also driving the scooter rental market. With rising environmental concerns, consumers are looking for alternatives to private vehicle ownership and are willing to opt for shared rental services. Electric scooters help reduce carbon emissions by replacing short car trips and promoting the use of public transportation. They also help tackle issues of congestion and lack of parking spaces in dense urban areas.
The global electric scooter rental market is also witnessing significant expansion owing to growing investments by firms. Several companies are expanding their business to dozens of international cities. For example, Lime and Bird now operate in over 100 cities each across the US, Europe, the Middle East, and Asia Pacific regions. The increasing adoption of shared micro-mobility is encouraging new players to enter emerging markets, supporting the market growth on a global level.
Market Key Trends
One of the key trends gaining traction in the scooter rental market is the introduction of innovative business models. Companies are focusing on partnerships with cities, educational institutes and corporate offices to provide custom rental plans. For instance, some platforms offer bundled or seasonal passes to frequent commuters or students. Few companies have also launched monthly or annual subscription plans for their services. Such innovative and customized options are helping increase adoption and revenue prospects for scooter rental businesses.
Porter’s Analysis
Threat of new entrants: Rental scooters have low barriers to entry as they only require initial capital costs but established operators have scale advantages.
Bargaining power of buyers: Individual customers have high bargaining power as they can choose from multiple scooter rental operators.
Bargaining power of suppliers: A few scooter manufacturers like Ninebot supply scooters to multiple rental operators so they have significant bargaining power.
Threat of new substitutes: Public transportation, cycling and ride-hailing services pose a threat as substitutes for first and last mile connectivity offered by rental scooters.
Competitive rivalry: The scooter rental market is highly competitive with global operators fighting for market share in cities across regions.
Geographical Regions
North America currently accounts for the largest share of the global scooter rental market in terms of value due to high adoption rates in the US. Cities like San Francisco, Los Angeles, Washington DC have supported the growth of shared scooter fleets through progressive policies.
The Asia Pacific Scooter Rental Market Regional Analysis is expected to witness the fastest growth during the forecast period. Burgeoning urban populations, growing first and last mile connectivity needs, and favorable climate conditions have led to trials of shared scooter services in major cities of China, India and Southeast Asia. Supportive infrastructure investments by local governments are boosting regional market growth.
Europe presents substantial opportunities for scooter rental operators. Countries like Germany, France and the UK have embraced shared micro-mobility as a climate-friendly urban transportation solution. Strategic city partnerships with operators have enabled widespread deployments across major cities. Growing investments in micro-mobility infrastructure are expanding the addressable market in Europe.
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*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
