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Valued at $143.4 million in 2018, the global kick scooter sharing market is projected to surpass $4,090.5 million by 2025, at a CAGR of 51.3% between 2019 and 2025.
Europe is expected to be the fastest-growing region in the kick scooter sharing market during the forecast period. This can be mainly attributed to the entry of established players in the market, with the intention to capitalize on their success in the North American region. Further, the influx of huge investments from various venture capitalists, along with automobile giants, is responsible for creating ample growth opportunities for kick scooter sharing services in this region.
Fundamentals Governing Kick Scooter Sharing Market
One of the key trends being observed in the kick scooter sharing market is the inflow of heavy investments. Major players, along with the numerous start-up companies in the market, are receiving hefty investments from several venture capitalists. For instance, VOI Technology AB, a Swedish electric kick scooter sharing company, received an investment of $50 million from London-based venture capital firm, Balderton Capital, in 2018. Additionally, Tier Mobility, a Berlin-based electric kick scooter sharing company, raised a funding of $29 million in 2018, for the expansion of its services across European countries.
The increasing demand for first and last-mile transportation is a major driver for the growth of the kick scooter sharing market. The mobility services provided by ride hailing, carsharing, and other similar firms have been unsuccessful in bridging the gap for first and last-mile transportation. Kick scooter sharing services play a pivotal role in covering this gap by offering mobility options for shorter distances, i.e. less than 5 km (3.1 miles) per trip, which is propelling the growth of the market. Moreover, these services are mostly offered via the dock-less or station-less model, which allows users to drop off the kick scooters at any place as per their convenience, which is further assisting in first and last-mile traveling.
Kick Scooter Sharing Market Segmentation Analysis
On the basis of model, first and last-mile was the larger category in the kick scooter sharing market during the historical period (2017–2018), and it is expected to remain the dominant category during the forecast period. The prevailing mobility services, which include those offered on cars, are a costlier mobility option, while traveling the first and last miles. Kick scooter sharing services have been successful in replacing the use of cars, especially for first and last-mile commuting, as these are best fitted for traveling shorter distances.
Geographical Analysis of Kick Scooter Sharing Market
North America was the largest kick scooter sharing market during the historical period and is expected to maintain the trend during the forecast period. The dominance of the region is buoyed by the rapid adoption of the service here, along with the existence of the biggest players in the world, including Bird, Lime, and Spin. The region was the first to introduce the kick scooter sharing services, back in 2017, for the purpose of solving the first and last-mile commuting problem. This is why kick scooter sharing is currently viewed as one of the most beneficial commuting options in the region.
During the forecast period, Europe is forecast to witness the fastest growth in the kick scooter sharing market. It is the massive adoption of the services in the North American region which has been playing a pivotal role in influencing their adoption in Europe. The service has been the most popular in Spain among all European countries, followed by France, Belgium, Switzerland, and Austria.
Competitive Landscape of Kick Scooter Sharing Market
The global kick scooter sharing market is consolidated in nature, with the top two players accounting for the major market share in 2018. The major players operating in the market are Neutron Holdings Inc. (Lime), Bird Rides Inc. (Bird), Waybots Inc. (Skip), Social Bicycles Inc. (JUMP), VOI Technology AB, Taxify OU (Bolt), emTransit B.V. (Dott), Beam Mobility Holdings Pte. Ltd. (Beam), LMTS Holding S.C.A. (Circ), TIER Mobility GmbH (Tier), BYKE Mobility GmbH (Wind), Bycyshare Technologies Pvt. Ltd. (Mobycy), Neuron Mobility Pte. Ltd., Grin Scooters SAPI de CV (Grin), mytaxi Polska sp. z o.o. (Hive), and Skinny Labs Inc. (Spin).
Recent Strategic Developments of Major Kick Scooter Sharing Market Players
In recent years, the major players in the kick scooter sharing market have taken several strategic measures, such as service launches, partnerships, and mergers and acquisitions, and raised investments to gain a competitive edge in the industry. For instance, in October 2019, Lime launched its kick scooter sharing service in Roanoke Island, in North Carolina, with a fleet of 100 kick scooters. It aims to deploy 400 more scooters in the coming few weeks, for which charges will be $1.00 to unlock and an additional $0.23 per minute.
Moreover, in October 2019, Tier announced the receipt of an investment of $60 million (EUR 55 million), as a part of its Series B funding round, led by Goodwater Capital and Mubadala Capital. The same month, Bird announced that it had received $275 million, as part of its Series D fund raising round, and this investment has taken the company’s valuation to $2.5 billion.
Key Questions Addressed/Answered in the Report