SCOOTER RENTAL MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Scooter Rental Market Size and Trends

The global scooter rental market is estimated to be valued at USD 2.84 Billion in 2024 and is expected to reach USD 8.15 Billion by 2031, exhibiting a compound annual growth rate (CAGR) of 16.2% from 2024 to 2031.

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Scooter rental services have grown in popularity in recent years as an affordable and convenient mode of transport for urban commutes and tourism activities. The Scooter Rental Market has witnessed a steady rise in new entrants and service expansions across major cities globally.

Market Driver - Technological advancements in scooter design and rental platforms

In recent times, there have been significant technological advancements in the design of electric scooters as well as platforms that enable efficient rental operations. On the design front, scooters now come equipped with larger batteries that allow for longer range per charge. This enhanced range helps address consumer range anxiety and has increased the scope of rides. Scooters are also becoming increasingly intelligent with features like GPS, IoT connectivity and geo-fencing capabilities. This allows rental providers to efficiently track and monitor their fleet, ensure riders follow local rules, and remotely operate locks if needed.

Some rental companies have also introduced innovative locking and payment mechanisms into their scooters. Features like app-based unlocking using Bluetooth or NFC tags and digital payment options through the app improve convenience. Such integrated technologies reduce the need to physically interact with machines for basic operations. This leads to frictionless riding experiences and bodes well for attracting more users. Moreover, many rental providers are moving their backend operations to cloud platforms that help manage real-time availability information, prevent misparking using AI and handle customer services digitally.

Automotive companies have also entered this space and are bringing their expertise in electrification and mass production to develop higher-quality scooters. These players are continuously collaborating with technology firms to build vehicles that are not only efficient to ride but also connectable. For example, integrating e-scooters with smartphone apps allows monitoring ride data and health of vehicles. This collected usage information aids optimizations, predictive maintenance, and safety features over time. Advanced technologies like these make shared e-scooters more reliable and user-friendly, thereby supporting increased adoption.

For instance, in February 2022, Moto Business Service India (MBSI), a subsidiary of Yamaha Motors focused on shared mobility solutions, made a strategic investment in Royal Brothers, a bike rental company. This collaboration operates on a revenue-sharing model and represents MBSI's inaugural partnership as it seeks to enhance its footprint in the shared mobility sector. Additionally, MBSI intends to collaborate with other emerging market players in the future to broaden its service offerings.

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Government initiatives and incentives for sustainable transportation

Governments across various cities and countries have proactively introduced initiatives and incentives targeted at promoting micro-mobility and sustainable transportation. For instance, many local administrations provide designated lanes for bikes and e-scooters to encourage their usage for shorter commutes as an alternative to cars or public transport. Authorities also organize awareness drives highlighting environmental benefits and health advantages of greener commute options. This nurtures a culture of adopting micro-mobility aids like e-scooters and e-bikes for daily trips.

Some governments offer tax rebates or purchase subsidies for eco-friendly vehicles including e-scooters. Few cities have launched schemes providing seed funding or infrastructure support for setting up rental fleets of shared e-scooters. Regulatory frameworks are also being developed to accommodate and regulate their usage on roads and public places. Setting clear operational guidelines helps address safety concerns and encourages structured growth of rental businesses.

Certain administrations give preferential parking rights or reduced parking fees for green vehicles. Some nations provide tax breaks to companies investing in manufacturing environmentally sustainable mobility options. A few ambitious nations have even announced nationwide bans on new petrol or diesel vehicles post a deadline with goals to fully transition to electric mobility in the coming decades. Proactive steps like these by governments lay the foundation for an ecosystem promoting the shift to low-carbon transport using innovative solutions like shared electric scooter services.