The Three Phases of Micromobility

The evolution of micromobility from 2018 to 2024 can be divided into three distinct phases, each characterized by different strategies, regulatory challenges, and market dynamics. These phases highlight the growth, struggles, and adaptations of the micromobility sector.

The First Phase (2018-2020): Unregulated Expansion

In this initial phase, micromobility operators such as Bird and Lime aggressively expanded their fleets of shared electric scooters in urban centers worldwide without prior communication or authorization from city officials. This strategy aimed to quickly capture market share and user base before regulations could catch up.

Despite the lack of official approval, these services saw high utilization rates and enthusiastic adoption by citizens who appreciated the convenience and flexibility of scooter sharing. Cities like San Francisco, Paris, and Los Angeles witnessed rapid proliferation of scooters, offering a new solution to last-mile transportation challenges. This phase was marked by high user satisfaction and significant demand, as people found scooters to be an effective way to navigate city streets.

However, the unregulated deployment led to issues such as safety concerns, sidewalk clutter, and a backlash from city officials and residents. Incidents of improper parking, vandalism, and accidents underscored the need for better management and integration with existing urban infrastructure.

The Second Phase (2020-2022): Regulatory Engagement and Challenges

As micromobility matured, operators began engaging more actively with city officials. This phase was marked by a growing recognition among cities of the potential benefits of micromobility, alongside the need to address issues arising from its rapid and unregulated expansion.

City officials, initially unfamiliar with micromobility, often relied on consultants to draft tenders and regulations. This resulted in stringent and sometimes unrealistic requirements for operators. Regulations included limits on the number of scooters, designated parking zones, and mandatory data sharing. Operators responded with ambitious technological solutions and financial incentives to secure contracts. However, these stringent regulations often reduced service usability and citizen satisfaction, leading to a decline in utilization.

The COVID-19 pandemic exacerbated challenges for the micromobility sector. Lockdowns and social distancing measures led to a temporary drop in demand, forcing operators to adapt their business models and focus on hygiene and safety protocols.

The Third Phase (2022-2024): Market Consolidation and Strategic Refocusing

Facing funding challenges and increased regulatory pressures, the micromobility sector entered a phase of consolidation. Many operators struggled to raise capital, leading to bankruptcies and mergers. Investors shifted focus towards immediate profitability rather than expansion at all costs.

Operators began prioritizing business viability and sustainable growth, emphasizing service quality and user retention. This phase also saw a move towards collaboration with cities, integrating micromobility solutions into the broader transportation ecosystem to complement public transit and enhance urban mobility.

Conclusion

The evolution of micromobility through these phases highlights the dynamic interplay between innovation, regulation, and market forces. From unregulated expansion to regulatory engagement and finally to market consolidation, the sector has undergone significant transformations. The lessons learned emphasize the importance of balancing rapid deployment with sustainable practices, regulatory compliance with user satisfaction, and short-term profitability with long-term growth.

How to tender

City officials must understand the dual aims of ensuring operator profitability and providing good service and usability for citizens. Failure to address these goals in future tenders may result in operators not submitting bids, leading to a lack of services and subsequent citizen dissatisfaction, which could impact officials in future elections.

Safety

Moreover, cities should invest in segregated bike lanes, which have proven to be the most effective safety measure, significantly reducing deaths and injuries. Data shows that mandatory helmet laws have minimal impact on safety, serving more as political gestures rather than effective safety solutions. Real improvements require significant infrastructure investments, particularly in segregated bike lanes.

Still a strong business

The micromobility sector, despite being relatively young, has generated massive impacts in terms of ridership and user benefits, as well as business growth potential. For instance, Bird's cumulative revenue since its founding has outpaced that of major tech companies like Google, DoorDash, Uber, Lyft, and Tesla during their early stages.

Future strategies for micromobility operators should focus on fostering collaborative relationships with city officials, investing in technology and infrastructure that enhance service usability, and prioritizing the needs of citizens to build a resilient and sustainable micromobility ecosystem. As cities evolve, micromobility has the potential to play a crucial role in shaping the future of urban transportation.