Bike Sharing Market Growing on Account of Rising Road Congestion

With urbanization, the demand for daily commuting is also growing. People need an efficient transportation mode to travel from their homes to an intermediate point, such as a bus stop or metro station, and then from that intermediate point to work, college or any other destination. Additionally, a large number of people also travel directly between their home and destination, without using intermediary modes of transport. Hiring a cab or using other public transit services can be slightly expensive and not always reliable, in terms of efficiency, which is why the demand for micromobility services, including bike (bicycle) sharing, is rising.

From $2.7 billion in 2018, the bike sharing market is expected to grow to $5.0 billion by 2025, at a 10.2% CAGR during 2019–2025 (forecast period). Dock-less and station-based are the two types of bike sharing services available across the world, of which dock-less services were more popular in 2017–2018. This is because dock-less bikes can be picked up and dropped off anywhere, as per the convenience of riders, which makes them more popular. Even service providers prefer dock-less bikes, as these require less capital expenditure than the station-based system.


Among the two types of bikes available for sharing purposes — pedal and electric — e-bikes are rapidly gaining popularity. The major reason behind it is that such vehicles are capable of higher speeds, compared to manually operated bikes. As the demand for higher speeds for short-distance traveling is increasing, so is the preference for e-bikes. People are ignoring the fact that sharing services on pedal-assisted bikes are cheaper than e-bikes, as the latter offer effortless driving, more convenience, and variable motor power, apart from higher speed.

Along with offering commuters cost efficiency, bike sharing also helps in tackling the problem of road congestion. With the increasing population, especially in cities, the number of vehicles on the roads is also going up. This is leading to the growing problem of urban congestion, which is prompting governments across the world to encourage the usage of bikes for first- and last-mile commute. As such vehicles take up significantly less space on roads and also require smaller parking slots, these help in controlling the traffic congestion.

Yet another factor tipping the scales in shared bikes’ favor is the convenience they offer to users. Commuters have to pay a small registration fee, followed by additional charges for every 30 minutes of travel. Additionally, bicycles are available 24 hours a day, making round-the-clock commute possible. Service providers have mobile applications, which provide important details, regarding the bikes, to users, along with instant booking facility. As there are no fixed parking spots (for dock-less services), people can keep the vehicles anywhere, after the end of their journey, which saves the time, otherwise spent in locating parking stations.

The bike sharing market growth in Europe is predicted to be the fastest across the globe, as a large number of service providers would venture into the region in the coming years. In regional countries, bikes are being rapidly made available near major transit hubs, such as railway stations, thereby offering users convenience and ease of travel. Additionally, the European Union (EU) also promotes such services, as they are environment-friendly and help reduce traffic.


Therefore, with an increasing number of people demanding cost-effective daily commuting options, the popularity of bike sharing services would continue increasing.
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