Micro-mobility companies across the globe have progressed significantly in the past several years. Micro-mobility describes a range of small, lightweight user-driven vehicles that operate at low speeds, and it’s an industry that’s gaining steam.
Micro-mobility and car-sharing solutions are expected to grow with a CAGR between 20% and 25% in the coming 5 years, with the micro-mobility market expected to reach $300 billion by 2030.
Stakeholders have invested more than $5.7 billion in micro-mobility start-ups since 2015, with more than 85% targeting China. The market has already attracted a strong customer base and has done so roughly two to three times faster than either car-sharing or ride-hailing. In just a few years, for instance, several micro-mobility start-ups have amassed valuations that exceed $1 billion.
One such company is Bird, the Santa Monica, California-based company that designs a scooter-sharing platform that provides affordable transportation solutions to communities across the world. Bird was last valued at $2.5 billion.
Earlier this year in January, Joyride — the Toronto-based micro-mobility software startup — received $282,000 from the Government of Ontario to build an electric scooter docking integration system that will make it easier for entrepreneurs to launch their own fleets. In the announcement, Joyride stated it plans to officially release its docking integration system internationally “in the coming months.”
Though, there’s a ceiling to the micro-mobility market— which means the next step is micro-mobility software.
Ride Report, a Portland, Oregon-based SaaS company that shares micro-mobility data with cities, raised a $3.4 million funding round in 2019. The company, which offers a software dashboard, enables cities to manage the bikes and scooters that are being used in their streets. It also offers customized reporting on the number and location of micro-mobility vehicles, the number and location of trips, how long they’re sitting idle, and other information.
Turns out, that more control over rider behavior and better compliance with city regulations is the next step for micro-mobility and SaaS companies looking to find a way into the market.
Similarly, Surve offers intelligent mobility operations solutions to shared mobility providers. Their micro-mobility services include battery-swap, fleet rebalancing, and vehicle recovery among additional infrastructure and software solutions developed to increase fleet efficiency and reduce operational costs.
Startups that provide cities with smart infrastructure solutions — especially solutions that will mitigate current clashes between governments and micro-mobility platforms — and those that provide city planning and micro-mobility data solutions will be instrumental in the long-term success of the industry.