Increasing Urban Road Congestion Fueling Demand for Bike Sharing Services
The increasing deployment of e-bikes in sharing fleets is driving the demand for bike sharing services across the world. Moreover, e-bikes are being increasingly preferred by people for short-distance commuting, as they provide variable motor power, effortless driving, greater convenience, and shorter travel times than pedal bikes. Besides, the surging road congestion, especially in the urban areas, on account of the booming population and escalating number of daily commuters, is also contributing to the soaring demand for bike sharing services across the world.
As a result, many countries are supporting the adoption of alternative transport modes, as these modes massively reduce the requirement for private vehicle ownership. The launch of bike sharing services in several cities has caused a sharp fall in road traffic congestion, as bikes require smaller parking space and less traveling area than conventional bikes. Because of this reason, other commuters traveling via public transport get enough space on roads.
Apart from the aforementioned factors, the greater economic convenience being provided by e-bikes is also propelling the popularity of bike sharing services across the world. Additionally, many bike sharing service providers are incorporating other transport modes in their service offerings, which is creating lucrative growth opportunities for the players operating in the bike sharing market. For example, Mobycy, which is a bike sharing service provider, launched its e-scooter service named Zypp in January 2019.
These scooters are equipped with internet of things (IoT) devices, which allow smart unlocking. Due to these factors, the revenue of the market is predicted to surge from $2.7 billion in 2018 to more than $5.0 billion by 2025, while the market will progress at a CAGR of 10.2% from 2019 to 2025. Depending on type, the bike sharing market is divided into station-based and dock-less categories. Of these, the station-based category is exhibiting faster growth in the market. This is because of the large-scale adoption of this model by the governments of many countries.
Hence, it can be safely said that the demand for bike sharing services will soar in the coming years, mainly because of the growing deployment of e-bikes and surging road congestion levels in urban areas all over the world.
