eResearch | In Q2/2020, the e-scooter and micro-mobility market continued to roll out pilots, create partnerships, and improve rider safety, while most economies were shut down due to uncertainties from the COVID-19 pandemic.
In Canada, the government launched its first e-scooter pilot in Ontario, supported by its previously announced five-year e-scooter pilot plan. .
In the U.S., as the pandemic shifted transportation patterns, commuters stayed home or opted for non-shared transportation alternatives and this negatively affected riders and revenues.
In addition, the micro-mobility industry experienced a major complication as three deaths were reported on mopeds serviced by Revel Transit, a U.S. ride-sharing company.
Insurance companies such as Zego have launched insurance products catered for the micro-mobility market to protect riders and companies.
Bird, Lime, and Roll Launch E-scooter Pilot in Ottawa
Last month, e-scooter companies Bird Rides, Inc., Lime Technologies (STO: LIME), and Roll Technologies Inc., launched a new e-scooter pilot project in Ottawa, Canada, with a city cap of 600 e-scooters. In the first few weeks, Ottawa experienced a surge in demand with 65,000 trips recorded.
This was the first e-scooter pilot in Ontario, supported by the provincial government’s recently announced five-year e-scooter pilot plan, focused on emerging technologies which are designing mobility products that limit environmental impacts.
In Ottawa, the province set the minimum age limit for riders at 16 years, with helmets required for riders under the age of 18. The cost to unlock a scooter is C$1.15 with a C$0.35 charge per kilometer of use.
Ottawa’
s new by-laws state a maximum speed limit of 20 km per hour, however, riders can ride up to 50 km per hour on permitted city-owned cycling facilities and roads.
Revel Transit Experiences Three Deaths on its Mopeds
Last month, Revel Transit, a U.S. ride-sharing company focused on electric mopeds, suspended operations in New York City due to three deaths related to its electric mopeds within the span of just 10 days. The electric moped company only just launched operations in May of last year.
PICTURE 1: Revel Tweet on NYC Service Update
Revel’s mopeds are all registered with the U.S. Department of Motor Vehicles (“DMV”), have license plates, and have max speeds of 30 km per hour.
Revel provides a free half-hour instructor course to new riders who meet the criteria of 21 years of age and have ownership of a valid driver’s license. In addition, free helmets are provided with each bike, which are required to be worn by riders.
However, Revel is criticized for a lack of a proper training course, as many drivers choose to not wear helmets while riding. Last month, Revel suspended 1,000 of its drivers for safety violations, including for not wearing helmets.
Revel also operates in California, Florida, and Texas, however, it has not released any updates on service availability for these locations.
Zego Provides Insurance to Micro-Mobility Industry
Last month, Zego, a London-based insurance technology (“InsurTech”) company focused on providing flexible pay-as-you-drive insurance plans for ride-share fleets, announced a partnership with Ginger, an e-scooter company, to insure the first U.K. e-scooter pilot.
The partnership follows the U.K. government’s recently announced plans to pursue a regulated e-scooter market through a 12-month pilot period. Ginger plans to deploy 100 e-scooters for the pilot, which is expected to increase to 300 by the end of this month.
Zego is expected to ensure coverage of the government’s third-party liability insurance, while also offering additional support such as coverage for personal accidents. Ginger incurs the full costs for the insurance plans and does not pass on any costs to riders.
This was not Zego’s first micro-mobility partnership, as it also recently partnered with Dott, a Europe-based micro-mobility company, to insure e-scooter fleets across Belgium, France, and Italy.
Ride-sharing Micro-Mobility Industry
As the COVID-19 pandemic changes transportation trends, the micro-mobility industry is expected to experience strong growth as consumers look for different methods of transportation other than the congested public transits.
Grandview Research did a study on the e-scooter market and valued it at US$17.4 billion in 2018, forecasted to grow to US$41.9 billion by 2030 at a CAGR of 8.5%.
A recent study by Research and Markets estimates the scooter sharing fleet, consisting of both sit-down & stand-up electric scooters, will grow to 4.6 million vehicles by 2024 with a 5-year CAGR of 43%.
Last quarter’s eResearch e-scooter and micro-mobility industry update article:
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