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The Indian two-wheeler sharing market stood at $19.2 million in 2018, which is expected to reach $94.0 million by 2025, with a CAGR of 20.2% during the forecast period (2019–2025).
The southern region dominated the Indian two-wheeler sharing market in 2018, and the market in this region is expected to witness a CAGR of 16.0% during the forecast period. Majority of two-wheeler sharing companies are present in cities of South Indian, such as Bengaluru, Hyderabad, and Chennai. It is also observed that new two-wheeler sharing companies generally have started their operations from this region.
Dynamics of India Two-Wheeler Sharing Market
Key trend observed in the Indian two-wheeler sharing market is increasing number of partnerships among two-wheeler sharing service providers to compete with other players in the market. For instance, in May 2019, one of the major sharing service providers, Uber Technologies Inc. (Uber) in India partnered with Yulu Bikes Pvt. Ltd. (Yulu) in order to provide bicycle sharing service to its customers.
Two-wheeler sharing service is a low-priced convenient solution for commuting, and therefore, its adoption is increasing rapidly in India. People are no more required to spend huge money on the purchase of two-wheelers and bear various costs, such as maintenance costs, insurance costs, parking arrangements, and other similar costs and responsibilities. The service can easily be accessed as users can book and locate two-wheelers through smartphone applications mostly available on google play store and iOS application store. Motorcycle/scooter sharing service is found to be approximately 25–40% cheaper than a cab booking.
In India, government is providing incentives and subsidies for the adoption of electric vehicles as part of eco-friendly mobility program. This provides huge growth potential to two-wheeler sharing service providers as the market is gradually shifting toward the adoption of electric two-wheelers. The electric motorcycles/scooters and bicycles help in reducing the burden of air pollution and also fulfil the demand for self-drive electric two-wheelers for first- and last-mile connectivity.
Structural Analysis of India Two-Wheeler Sharing Market
In terms of vehicle type, the motorcycle/scooter category dominated the Indian two-wheeler sharing market during the historical period, and is expected to continue dominating the market during the forecast period as well. This can be attributed to the significant growth in the motorcycle/scooter e-hailing and rental industry, as it is playing major role in solving the problem of first- and last-mile connectivity issues of people in India.
In the motorcycle/scooter category, the rental subcategory accounted for larger share in the Indian two-wheeler sharing market in 2018. Whereas, the e-hailing subcategory is expected to witness faster growth during the forecast period. The category has reported double-digit growth (albeit on a smaller base) in recent years, on account of the expanding operations of market players in several cities and the increasing acceptance of bike taxis in the National Capital Region (NCR) and Hyderabad. In addition, one of the major service providers, Roppen Transportation Services Pvt. Ltd. (Rapido) has been working on expanding its operations in major cities of India.
Geographical Analysis of India Two-Wheeler Sharing Market
Geographically, the southern region was the largest market for two-wheeler sharing service in 2018, and is expected to follow the same trend during the forecast period as well. This can be attributed to the fact that most of the two-wheeler sharing companies are present in cities, such as Bengaluru, Hyderabad, Chennai, and the majority of new start-ups have started their operations from this region.
During the forecast period, the two-wheeler sharing market in the eastern region of India is expected to witness the fastest growth, mainly due to the fact that two-wheeler sharing companies are now exploring cities in the eastern region and have made plans to cover the untapped market in cities of West Bengal and Assam in the upcoming years.
Competitive Landscape of India Two-Wheeler Sharing Market
The Indian two-wheeler sharing market is majorly dominated by few players in e-hailing, rental, and bicycle sharing categories. Some of the two-wheeler sharing service providers include Roppen Transportation Services Pvt. Ltd. (Rapido), ANI Technologies Pvt. Ltd. (Ola Bike), Uber Technologies Inc. (UberMoto), WickedRide Adventure Services Pvt. Ltd. (Bounce), Vogo Automotive Pvt. Ltd. (Vogo), Bycyshare Technologies Pvt. Ltd. (Mobycy), and Royalbison Autorentals India Pvt. Ltd. (Royal Brothers).
Recent Strategic Developments of Major Indian Two-Wheeler Sharing Market Players
From the last couple of years, majority of players operating in the Indian two-wheeler sharing market have taken strong strategic measures to remain competitive in the market, such as partnerships, securing investments from various investors and giant shared mobility providers, and new service area expansions. For instance, Vogo Automotive Pvt. Ltd. (Vogo) raised $3.7 million (INR 25 crore) fund, which was led by Alteria Capital Advisors LLP, in June 2019. Vogo will leverage this amount in the expansion of its two-wheeler rental service across India.
Further, WickedRide Adventure Services Pvt. Ltd. (Bounce) raised $3.0 million in debt financing from InnoVen Capital Pte. Ltd., in September 2018. Bounce will use this fund in its pan-India expansion.
Key Questions Addressed in the Report