The Past, the Present and the Future of Sharing Electric Scooter

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The Past, the Present and the Future of Sharing Electric Scooter

2019-08-05 15:08:12

For better or worse, electric scooter sharing has become an international business. From its simple origin as a two-wheeled, kids, kick scooter to a multi-billion dollar industry. Electric scooters have seen a huge leap in popularity within the last few years. On the surface, it appears to be a business model that is here to stay. The key to success that revolutionized the electric scooter industry is the rental business model. Being able to easily download the scooter company app onto your smartphone, such as Bird, Lime, Skip, Scoot or Spin and use the map to find a nearby scooter has been a massive game changer. All that’s left is to enter a credit car, scan the barcode and go!
Interested in reviewing other shared mobility trends? Check out our ridehailing trend post here or our bikesharing trend post here.

E-SCOOTER TREND: PAST, PRESENT AND FUTURE OVERVIEW OF SCOOTER SHARING
WHERE DID SCOOTER SHARING BEGIN?

The micro-mobility, scooter revolution began back in 2002 when the Segway entered the transportation arena. However, its bulky, awkward build created problems when riding on streets. It’s low battery power and high running costs made it difficult to sustain a loyal user base, so it never had the success everyone had previously expected.
Fast-forward ten years and these problems have been addressed by current scooter sharing providers. Since the Segway in the early 2000s, batteries have become more powerful and less expensive. Between 2010 and 2016, vehicles batteries dropped 86 percent in costs. Electric scooters can now travel between 20 and 30 miles per charge. Rental scooters also take advantage of the advancements in telecommunications. Everyone has access to a smartphone, so scooters now have GPS and 4G data connections, that can track their users.
The average starting cost to ride a shared electric scooter is $1 and then 15 cents a minute from there onwards. The overall costs of scooter sharing appeals to a wide selection of users, with range of different incomes. The improvements in technology and pricing has created a transportation revolution. It began in the West Coast of the US and in last few years has exploded on a global level.

PRESENT DAY: THE E-SCOOTER ECONOMY

Lime, Bird and Spin are the three leading contenders in the shared scooter market and they all off similar services. Users paying anywhere between 15 cents to $1 per minute to rent the scooters and they are all “dockless.” This means they can be picked up and dropped off pretty much anywhere.
The success of ride-hailing and the car sharing economy has left investors hungry for a piece of the shared transportation pie. This partly explains the scooter boom. Until recently there was a gap in the market for ‘First and Last mile’ transportation, that currently dockless bikes and electric scooters fill. Shared Scooters are a successful model because the generation that grew up playing on push scooters are today’s urban commuters. Balancing on two wheels is already a familiar concept.
Proving their popularity, Bird has rolled out over one thousand of it’s dockless scooters across 18 U.S cities, including LA, Dallas and Washington D.C. The company has also claimed to have over 1 million rides since launching in 2017. Meanwhile, Lime implemented its first batch of electric scooters in May, 2018 and is now operated in more than 65 U.S cities as well as 5 cities overseas. It has claimed 6 million rides in total. Lime (who also rents bikes) hit the $1.1 billion valuation mark just 18 months after it launched. Another scooter company, San Francisco-based Spin is reportedly raising $125 million in blockchain-based funding.

CASE STUDY: SAN FRANCISCO, CALIFORNIA

App-based, dockless e-scooters arrived into San Francisco in March 2018. Scooter start-ups such a Bird, Lime, Scoot and Spin have not yet released any information regarding their riders demographics. However, it would seem that the big companies are focusing their attention on Urban areas. These are the ares that have a large population of millennial residents. This is why San Francisco became a hot spot for scooter sharing. However, the start-ups faced some backlash and obstacles from the city regarding regulation and safety.

SCOOTER SHARING SUCCESSES: SAN FRANCISCO

San Francisco is one of the most eco-friendly cities in the world. Environmental accountability and sustainability are key components of the city’s fabric, so it wasn’t long before scooters were back in action. In October, only Skip and Scoot won the permits to relaunch scooters back into the city, but with stricter regulations.
Skip and Scoot are much smaller companies, but according to the San Francisco Municipal Transportation Agency (SFMTA), both companies put forth applications that,
“demonstrated not only a commitment to meet the terms of the permit, but a high level of capability to operate a safe, equitable and accountable scooter share service.”
Each company is currently allowed to operate a maximum of 625 scooters each, for six months. After that, providing the permit conditions have been met, they will be allowed to increase that number to 2,500 scooters each.
Furthermore, electric scooters run on battery power which eliminates fossil fuel emissions, another success for the scooter sharing economy. When Lime was at its peak and fully operational in the city, the company reported that more than 250,000 trips have been taken on its scooters. This translates to an “offset in airborne pollutant … equivalent to 280,389 lbs CO2 saved.”
E-scooters also provide a solution to the problem of traffic congestion in San Francisco and the ‘first and last mile’ part of a commuters journey via public transportation.

FUTURE OF SCOOTER SHARING

If we look at the progression of the ride-sharing industry since 2016 and the number of users that are estimated to be reached by 2022, we can see its massive growth in popularity.In 2009, when Uber first entered the market, it was unheard of. It seems like a transportation novelty that would never expand or progress. Currently, the scooter sharing industry appears to be at a comparable position. The public popularity of e-scooter sharing, will ensure it’s place in the shared mobility future.
It was hard at first, but sharing scooter got through its rough patch.At present, the Shared scooter has been in a prosperous stage. In the visible future, the popularity of the Shared scooter will be more and more high. Whoever can stick to it will be the winner in the end.

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