Bike and Scooter Sharing Growth Accelerates
April 26, 2019 | Blog

Bike and Scooter Sharing Growth Accelerates

As Lyft and Uber complete their transitions to public markets, both companies have identified micromobility solutions like electric scooters and bike-sharing as having the potential to contribute materially to the Transportation-as-a-Service (“TaaS”) industry. With such potential, we found it prudent to take a consumer-focused look at micromobility, which is broadly considered the next major battlefield of mobility. The insights that follow are the result of a consumer survey conducted in 2019. Responses from 800 consumers were gathered using Amazon Mechanical Turk. From these responses, it’s clear that this industry is growing significantly, and that its a smart move for Lyft and Uber to be involved in this rapidly expanding sector.

High awareness for bike/scooter sharing apps, 68% use them at least once a month

Bike and scooter sharing services, though nascent offerings, have quickly gained popularity in part due to the awareness of the overall ridesharing industry. Although the services are offered primarily in densely populated areas and downtown locations, over 75% of the consumers polled are aware of these services.

Amongst surveyed consumers, the usage has been relatively high. Over a third of people reported using micromobility services at least once a week and over two thirds reported using it at least once a month. Consumers have also hinted at the potential for continued growth in the micromobility space, as over 35% of respondents plan to increase their scooter/bike sharing use over the next year.

Exhibit 1: High awareness of bike and scooter sharing services
Bike/Scooter sharing services awareness
Exhibit 2: Nearly 70% of riders use bike or scooter sharing at least once a month
Frequency of use of bike/scooter sharing services
Exhibit 3: Over a third of respondents plan to increase their use over the next year
Anticipated future use of bike/scooter sharing services
Lime and Bird are the top pure play micromobility apps, but Lyft dominates the U.S. market

There are several big and small players in the bike and scooter sharing market. LimeBike and Bird are the most popular services among survey respondents, contributing to a third of all bike sharing services available. While Lime and Bird are the most familiar applications from our unaided brand awareness results, Jump and Citi Bike topped the list of the most familiar apps from our unaided brand awareness results. Un-aided, 17% of the respondents named Lime as the app that comes to their mind most when they think of bike sharing apps, while 24% of the bike sharing users selected Jump as the most familiar app.

While Jump, which was acquired by Uber in 2018, is available in 15 U.S. cities and 2 international cities, the most wide-spread player in this market is Lyft due to their 2018 acquisition of Motivate. Motivate is a bike sharing platform used by several bike sharing services such as Citi Bike, Go Bike, Biketown, Blue Bikes, Divvy and Capital Bikeshare. According to Lyft’s registration filings, 74% of 2017 bike share trips were completed on Motivate systems.

Exhibit 4: Lime, Bird and Citi Bike are the top three bike sharing apps in the U.S.
Which bike/scooter sharing apps are being used
Exhibit 5: Un-aided brand awareness for bike and scooter sharing services
Un-Aided Brand Awareness
Exhibit 6: Aided brand awareness for bike and scooter sharing services
Aided Brand Awareness
Environment concern is the top reason for using bike/scooter apps while safety worries linger

Interestingly, one of the top reasons consumers use bike sharing apps is environmental consciousness. Over a fourth of respondents indicated they use bike sharing services to help reduce their carbon footprint. The other top reasons include ease of finding a ride, at 24 percent and cost at 20 percent.

Exhibit 7: Environmental consciousness a key driver for using bike sharing apps
User’ favorite reasons to use bike/scooter sharing apps

20 percent of respondents indicated the top reasons for limiting their usage are unclear parking locations and lack of clarity of traffic rules for bike/scooter sharing users. The micromobility industry grew faster than cities could formulate applicable rules and regulations. Due to increased complaints, some cities have taken extreme measures, including banning these services, until the companies educated users on traffic rules and safe parking locations for their bikes and scooters.

Exhibit 8: Unclear traffic rules and parking locations key concern for bike sharing users
User’ least favorite thing about using bike/scooter sharing apps

It’s still unclear what proportion of the TaaS market will be held by micromobility solutions, but the $1.5 billion raised over the past two years by market leaders Bird and Lime suggests venture capitalists have high expectations. It’s no surprise then that both Uber and Lyft have opted to expand quickly into this area. To likely counter Lyft’s Motivate acquisition, Uber is reportedly exploring an acquisition of either Bird or Lime – the company is already an investor in the latter. This would likely sweeten the deal and add yet another service under the Uber umbrella as the company begins its roadshow over the next few weeks.

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This report does not contain a complete analysis of every material fact regarding any issuer, industry, transaction, or security. The opinions expressed in this report reflect the judgment of the analyst at a specific point in time and are subject to change. The information contained in this report has been obtained from sources the analysts consider to be reliable; however, there is no guarantee the any of the information is accurate.

Securities referenced in this report may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

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Alejandro Ortiz

Alejandro Ortiz

Alejandro is a Research Analyst, Private Investment Research for SharesPost Research LLC. Prior to joining SharesPost, he was a Valuation Analyst at Duff & Phelps with a focus on TMT industries.

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

CONFLICTS

This report is distributed by SharesPost Financial Corporation, a member of FINRA/SIPC. SharesPost Research LLC, SharesPost Financial Corporation, and SP Investments Management, LLC, an investment adviser registered with the Securities and Exchange Commission, are wholly owned subsidiaries of SharesPost, Inc.

Recipients who are not market professionals or clients of SharesPost Financial Corporation should seek the advice of their own financial advisors before making any investment decisions. None of the information contained in this report represents an offer to buy or sell, or a solicitation of an offer to buy or sell, any security, and no buy or sell recommendation should be implied, nor shall there be any sale of these securities in any state or governmental jurisdiction in which said offer, solicitation, or sale would be unlawful under the securities laws of any such jurisdiction.

This report does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

ANALYST CERTIFICATION

The analyst(s) certifies that the views expressed in this report accurately reflect the personal views of such analyst(s) about the subject matter therein, including all of the subject securities or issuers, and that no part of such analyst compensation was, is, or will be during their employ directly or indirectly related to their specific views contained in this report.

Analyst compensation is indirectly based upon the growth and success of SharesPost, Inc., including the overall performance of its subsidiaries, the individualized performance of any such analyst, and the development and progression of the overall research effort. SharesPost, Inc. earns revenue from, among other avenues, brokerage sales, and therefore the analyst may indirectly benefit from research reports that have the ultimate effect of increasing trading activity, either through SharesPost Financial Corporation and/or with SharesPost Investment Management, LLC.

DISCLAIMER

This report does not contain a complete analysis of every material fact regarding any issuer, industry, transaction, or security. The opinions expressed in this report reflect the judgment of the analyst at a specific point in time and are subject to change. The information contained in this report has been obtained from sources the analysts consider to be reliable; however, there is no guarantee the any of the information is accurate.

Securities referenced in this report may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2019. All rights reserved.