Bike-as-a-Service Market: Introduction
- Rise in concern about carbon emission and need to reduce the issue of traffic congestion have prompted the development of bike sharing or rental bikes as an adaptable alternative to personal bikes in terms of cost and resources both, which in turn is anticipated to propel the bike-as-a-service market during forecast period
- Bike-as-a-Service is a shared micro-mobility service or provision of making bikes available for shared use through a self-service or pooling rental scheme in which people can hire bikes or ride for short-term use. The service can be free of charge or offered for a price. The development of a dock-less bike sharing system was prompted by expansion of various technologies such as GPS technology, consumer-ready mobile payments, and IoT, as well as the reduction in the investment cost of locking and monitoring systems for bikes. The dock-less bike sharing method has resulted in better bike-sharing services in the rising urban commutes, enabling users the simple flexibility of picking up and dropping off bikes from any lawful public car parking instead of the operator's bike stations, thereby allowing for easier transit access.
Key Drivers of Bike-as-a-Service Market
- Bike-as-a-service enables users to leverage the benefits of the various factors such as no initial cost (Zero buying cost), lower ride cost, minimum travel time (ease of access on narrow roads), and latest technologies including e-booking, GPS, etc. It also lays off the cost of ownership of a bike, thereby eliminating the need for huge capital investments. These factors are driving the bike-as-a-service market.
- Stringent government norms aimed at reducing carbon dioxide emissions is also fuelling the bike-as-a-service market. Bike sharing is an adequate mode of travelling due to the demand from consumers for low-cost commute. Moreover, emergence of fast internet, IoT platforms, affordable smart gadgets, and rising demand for transporting commodities are offering significant opportunities for bike sharing and rental bike providers across the globe.
Challenges in Bike-as-a-Service Market
- Bike-as-a-service or bike taxi providers are facing some legal issues related to their registration with local authorities. Recently, in India, bike taxi service provider Rapido experienced documentation issues, because as per the Motor Vehicle Rules in India, whiteboard vehicles are not supposed to be used for taxis. Here, bikes are only for personal use, not for commercial purposes and in case of any accidents or miss-happening, riders are not eligible to receive insurance claims or benefits.
- Bike theft and vandalism have become a major issue around the world, as dock-less operations have developed dramatically. A theft of dock-less bikes has been reported by several dock-less bike-sharing service providers. Furthermore, an increase in theft and damage of distinctive bikes, which forces a market player to cease operations, has a negative impact on the bike-sharing market. For instance, in January 2018, GoBee, a Hong Kong bike rental company, pulled out of Brussels, Lille, and Reims in France since 85% to 90% of their fleet had been damaged or stolen in these cities.
Opportunities in Bike-as-a-Service Market
- Rise in fuel prices across the globe is encouraging commuters to opt for ride-sharing services, which is an affordable way of commuting from one place to another. Adoption of electric vehicles is offering considerable opportunity for bike-as-a-service or bike taxi providers, which are gaining popularity due to their low operational cost as well as they provide an ecofriendly ride.
- Advancements in various technologies such as GPS, consumer-ready mobile payments, and the Internet of Things, as well as lower investment costs for locking and monitoring systems for bikes have led to the emergence of dock-less bike sharing systems
Regional Outlook of Bike-as-a-Service Market
- Expansion of the industrial sector in India and China is aided by rising urbanization and a rapidly increasing population. Several start-ups are investing in the market in China due to a high number of prospective clients in the country. Furthermore, around 30 cities in China, including Shanghai and Beijing, have enacted several regulations to guide bike-sharing maintenance, operation, and production, enabling service providers to remove broken bikes from the fleet. For instance, in August 2017, China issued a national framework for regulating dock-less bike-sharing to guarantee that bikes are distributed evenly and that specified parking spaces are available. Demand for bike-as-a-service is increasing in various cities in India, including Delhi, Mumbai, and Bangalore, due to rising pollution and noise emissions in these cities. Moreover, rising demand for low-cost transportation alternatives in countries in Latin American, such as Brazil and Mexico, is estimated to offer significant opportunity for the bike-as-a-service market.
Key Players Operating in Global Bike-as-a-Service Market
A bike-as-a-service market is moderately consolidated. A few of the key players operating in the global bike as a service market are:
- Rapido (Roppen Transportation)
- LYFT Inc.
- Gojek Tech
- Beijing Xiaoju Technology Co. Ltd.
- Grab
- Baxi: The Bike Taxi
- Uber Technologies Inc.
- Ola Bike (ANI Technologies Pvt. Ltd.)
- Safe Boda
- Bikxie
- Pathao Ltd.
- Desto- Bike Taxi
Global Bike-as-a-Service Market: Research Scope
Global Bike-as-a-Service Market, by Service Type
Global Bike-as-a-Service Market, by Propulsion Type
Global Bike-as-a-Service Market, by Booking Type
Global Bike-as-a-Service Market, by Region
- North America
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Nordic Region
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- ASEAN
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- UAE
- Nigeria
- South Africa
- Rest of Middle East & Africa
