The self-service scooter market - France

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.

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 19/12/2022

Summary and extracts

List of charts presented in this market study

• 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
• Price/minute of different means of transportation for an arbitrary example of a trip in Paris
• Distribution of the number of journeys made using shared mobility
• Market share of different shared mobility services