Vandalism and theft remains the biggest challenge for dockless bike-sharing service providers
The global bike-sharing services market is predicted to expand at a compound annual growth rate (CAGR) of 12.5 per cent from 2018 through to 2026, according to a new study.
Credence Research’s Bike-Sharing Services Market report showed a range of factors were fuelling the growth including: governments offering subsidies to service providers for setting-up stations and expanding reach to greater numbers of commuters; and moves by cities across the globe to battle traffic congestion in the face of rapid growth in urbanisation and travel demand.
The global bike-sharing services market is described as in the nascent stage of development and poised to offer significant investment opportunities for all participants (operators, federal agencies) across the ecosystem.
In terms of business model, the report found station-based bike-sharing model was preferred over dockless bike-sharing by service providers.
The value contribution from station-based bike sharing services stood at over 86 per cent in 2017. The trend will prolong and station-based bike-sharing models will continue to generate majority of the revenue stream throughout the forecast period, said Credence.
Vandalism and theft remain the biggest challenges for dockless bike-sharing service providers. Various incidence of vandalism and bike theft have been reported in several companies across the globe. For instance, in Europe, bike-sharing service provider, Gobee.bike was forced to abandon its operations in Paris after thousands of its bikes were either vandalised or stolen.
Similarly, the company had also abandoned its operations in Rome and Brussels because of significant vandalism to its fleet. Service providers are trying to address these issues by installing GPS trackers in their bicycles.
"Station-based bike-sharing models will continue to generate majority of the revenue stream throughout the forecast period"
In view of positive outlook and to gain first movers’ advantage, established companies in other fields are striving to enter bike-sharing business, the report stated. For instance, Uber’s recent acquisition of Jump will allow the company to gain first movers advantage in the US market and prove its dedication towards becoming an urban mobility company instead of just a taxi alternative.
Early movers with best consumer experience, flexibility, and quality offerings will gain early advantage in the market, added Credence.
Some of the leading vendors profiled in the study include NYC Bike Share, Hangzhou Public Transport Corporation, Gobee.bike, LimeBike, Dropbike, Ofo, Beijing Mobike Technology Co, Uber Technologies, Zagster, and GrabTaxi Holdings.
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