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Summary
The market for self-service electric scooters has grown significantly since 2020, with a marked increase in shared mobility use of 48% in Europe in 2022 alone. as the market matures, it has consolidated around major players such as Lime, Dott and Tier, particularly in France where stricter regulations, such as the Paris measures for user safety and liability, have been implemented. Despite initial concerns about profitability, improvements in scooter durability and operational efficiency have enabled some operators to approach profitability, underlined by the need for a minimum of five trips per scooter per day to break even, according to McKinsey.
The market has also been shaped by innovation in safer, more durable scooters, expanded insurance coverage and business models that adapt to diverse user profiles. By 2025, the global market is expected to be worth between $40 and $50 billion, with Europe accounting for up to $15 billion of this. In particular, electric scooters will account for 51% of the shared vehicle fleet in Europe by 2022, testifying to the dominance of this segment in the micromobility sector.
The urban electric scooter market: market trends and user dynamics
In recent years, the urban mobility landscape has been significantly reshaped by the arrival of electric scooters, particularly in the micro-mobility sector. Their popularity soared in the wake of the health crisis, as they offer a convenient and flexible mode of transport that meets the growing demand for personal mobility devices (PMDs).
The French market, which has embraced this trend with enthusiasm, has seen players like Lime, Dott and Tier become mainstays, after an initial surge that saw up to a dozen competitors vying for market share in cities like Paris. Free-floating scooters, available via an app and unlocked with a QR code for a per-minute fee, experienced a hyper-competitive pricing landscape that led to market consolidation. Only a few strong players have managed to survive and thrive in the midst of aggressive competition.
According to BCG, the European and American scooter markets alone are expected to reach a staggering $25-30 billion. A study of the free-floating scooter user base reveals a shift in preference from leisure trips to work and commuting, which account for almost half of usage. The typical user profile emerging in Paris is that of a 37-year-old male, often a senior executive with a high level of education, who values efficient travel time and environmental impact. This demographic profile has contributed to the significant growth of the French self-service scooter market, which reached a market volume of over 40 million euros in 2020.
The self-service scooter sector has evolved into a space dominated by a handful of players, representing a significant change from the dozen or so companies operating in 2019. Public tenders and municipal regulations have imposed constraints, such as limiting the number of scooters and operators, favoring a more structured and consolidated market.
However, profitability remains the Achilles heel for many players in this sector. Initially, operators were more concerned with expanding the user base than with immediate profits, but with the high costshowever, with the high cost of fleet management and the need for differentiation, a change in business model became necessary. Innovations to improve scooter lifespan and reduce vandalism, as well as higher fare prices, have helped companies move closer to financial viability.
Despite market challenges, shared mobility remains a thriving segment, with electric scooters accounting forrepresenting 16% of journeys in France, although they have a larger share of overall revenue due to their pricing model than other shared mobility services such as bicycles.
Market leadership and strategic moves among leading electric scooter operators
In the dynamic landscape of urban mobility, electric scooters have established themselves as a cornerstone that combines convenience, environmental awareness and modernity. Although intensely competitive, this market has seen waves of consolidation, leading to a few major players who are currently shaping the future of micro-mobility.
- Lime: Pioneering a new era of urban mobility among the dominant market forces, Lime stands out for its innovative approaches and vast user base. The company has successfully launched its Gen4 scooter, which brings technological advances such as removable batteries, larger wheels for better navigation and innovative curb detection technology to avoid driving on sidewalks. Lime has been forward-thinking when it comes to sustainability, committing to switch to electric vehicles and renewable energy. Pricing is structured to cater for different usage patterns, offering both short-term access and subscriptions for frequent users.
- Tier: Focus on safety and sustainability Tier Mobility has made a name for itself by focusing on safety and sustainability. It limits its scooters to 20 km/h, ensures smooth braking thanks to a combination of front motor brakes and rear drum brakes, and uses dual suspensions for a safe ride. In the interests of longevity and reduced environmental impact, their scooters have a remarkable range of 50 km before recharging. Tier's business model includes unlimited unlocking subscriptions, making driving not only safer, but also more economical for ordinary users.
- Dott: Promoting sustainable, responsible solutions Dott is renowned for its sturdily designed scooters that prioritize longevity and user safety. Featuring larger wheels and a triple braking system, scooters are designed for stability and better balance. Dott takes a responsible approach, overseeing the entire life cycle of its batteries and promoting repairability and recyclability. The pricing model is simple, by the minute, making it easy for users to understand and estimate costs.
- Bird: a case study in market challenges Bird's story highlights the volatility of the self-service scooter market. Despite a strong start-up and significant fundraising, the company faced a wave of financial difficulties that led to downsizing and a fall in share value. This story underlines the importance of a solid business model and adaptable strategy in this sector.
These key players, with their distinct strategies and offerings, not only compete for market share; they also influence regulations, technological standards and user behavior in the field of urban micro-mobility. As the market continues to evolve, the foresight and efficiency of urban micro-mobility players is paramount.
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- Number of pages : 30 pages
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- Last update : 19/12/2022
Summary and extracts
1 Market overview
1.1 Definition and scope of the study
The self-service or free-floating scootermarket concerns the urban mobility service offered by electric scootersin recent years, the market for micro-mobility (up to 6 km of travel distance) - which includes the market for scooters - has grown which includes self-service scooters - has seen the use of personal mobility devices (PMDs) become more widespread and amplified after the health crisis in particular.
Free-floating scooters are available for rent and can be used/dropped off at their convenience. This service is made available and is operable via the use of a mobile application and a QR Code allowing the unlocking of the scooter. As far as the French market is concerned, the service costs a pre-announced price that corresponds to a rate per minute traveled.
This ease of use has made it a huge success and thus in 2018 a multiplicity of players have invested the market offering an equivalent service and thus being able to differentiate themselves only by the price offered to users. The hypercompetitiveness of the price has led to the exit of many players from the market, as they were unable to generate profit and intensified the phenomenon of concentration. Today, only a few players have managed to stay on this market, such as Lime, Dott or Tier (the only players still existing in Paris, while they were 12 in 2018). Thus, following a phase of anarchic development, the self-service electric scooter market is regulating itself and could reach 25 to 30 billion dollars on the European and American markets alone, according to the consulting firm BCG.
in addition to this ultra-competitive scheme, there is an ever-increasing amount of regulation to control the practice and protect users. For example, in November 2022, the Paris City Council is threatening not to renew the contracts of the three operators if they do not implement a number of measures.
1.2 A global market with great growth prospects
According to the Boston Consulting Group(***), the global self-service electric scooter market is expected to be worth between US$** billion and US$** billion by **** .
Distribution of the self-service electric scooter market by world region World, ****, % of market by value Source: ****
The chart below highlights the breakdown by world region, with Europe ...
1.3 European and French markets
state of the European market in ****
The use of shared mobility has increased by **% compared to ****. ***,*** vehicles are now present in the ** European cities analyzed by Fluctuo: an increase of **%. *** services are offered.
Distribution of the European shared-vehicle fleet Europe, ****, as a % of total Source: ****
Scooters represent **% of the vehicles deployed ...
2 Analysis of the demand
2.1 User profile
The use of electric scooters has evolved over the last few years: even if leisure remains the primary reason for using self-service scooters, business and commuting account for **% of usage.
Use of self-service scooters France, ****, in % Source: ****
Conducted in **** in partnership with Smart Mobility Lab and OpinionWay, the Mobiprox Observatory study ...
2.2 Comparative study of different urban mobility services
Distribution of the number of trips made using shared mobility France, ****, in % of number of trips Source: ****
The majority of trips (***) are made by bikes shared in stations, followed by free-floating electric scooters with **% of trips. More than ***,*** trips were made in ****.
Nevertheless, in terms of value, electric scooters dominate the ...
3 Market structure
3.1 Market value chain
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⇓
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3.2 A market that is consolidating and structuring itself around a handful of players
In ****, there were ** companies in France offering free-floating services, all of them present in Paris and some in * other French cities: Lyon, Marseille, Bordeaux and Angers. Some attempts ended in failure, such as Lime in Toulouse or Bordeaux, or Wind in Nantes. [***]
The tendering process has changed the situation completely since ...
3.3 A business model that impacts the profitability of the main players
In ****, consulting firm BCG raised the issue of the uncertain profitability of startups in the sector.
Indeed, operators had to focus on expanding their user base at launch to gain market share and profitability was only the next step in their development.
By estimating the lifespan of scooters at * months with ...
4 Analysis of the offer
4.1 Analysis of self-service scooter supply
Comparison of self-service in Paris
4.2 Innovations and supply trends
Constant innovations to improve safety
To make users safer, operators have implemented changes within the scooters themselves: lower deck for better support, detection system for sidewalks and risky areas.
More sustainable scooters
Lime and zero-emissions: implementation of zero-emission vehicles (***). They plan to replace all non-all-electric vehicles by ****. Similarly, across the value ...
5 Regulation
5.1 Regulatory framework
The LOM Law to structure the market and an entry into the highway code for EDPM
The Mobility Orientation Law was published in the Official Journal on December **, ****. This law transforms mobility policy in depth, with a simple objective: daily transportation that is easier, less expensive and cleaner. But it also ...
6 Positioning of the actors
6.1 Overview of the actors
- Lime Neutron
- Dott
- Tier Mobility
- Voi mobility
List of charts
- Regional breakdown of self-service electric scooter market
- Distribution of the European shared vehicle fleet
- Segmentation of scooter users
- Framework for the use of self-service scooters
- Number of companies operating in the self-service scooter sector in France
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Latest news
15.000 Parisian scooters on the move - 02/08/2023
- 15,000 scooters operated in Paris by Dott, Lime and Tier Mobility.
- Lime plans to transfer its fleet to Lille, Copenhagen, London or Germany, and to maintain a fleet of 10,000 bikes in Paris.
- Dott has withdrawn 5,000 scooters from Paris at a rate of 500 a week, which will be sent to Bordeaux, Belgium or Tel Aviv.
- Tier Mobility will transfer a third of its fleet to 80 communes in the Île-de-France region, while the rest will be sent to Germany or Poland.
- Paris is the first European capital to completely ban self-service scooters.
EXCLUSIVE - Lime withdraws from the Paris electric scooter market due to uncertain profitability. - 09/12/2021
- Lime, which wanted to challenge Cityscoot, has withdrawn its fleet of bikes and scooters from Paris, one of its biggest markets worldwide.
- The Paris electric scooter market has become a highly competitive sector with the launch of three other players.
- The American company, which raised $418 million for its IPO, has decided to cut its losses and has left the Paris market, leaving Jump's scooters behind.
- Present in the French capital since summer 2018, Lime won the bid for the scooters and picked up Jump's bikes in a financial deal in 2020.
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The self-service scooter market | France
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