The future of: micromobility

The long-term success and scaled adoption of the low-speed, lightweight vehicle market (aka micromobility) hinges on infrastructure, unit economics, and safety. As many of you have seen in the news, or have personally experienced, micromobility vehicles includes but is not limited to e-scooters, e-bikes, and electric skateboards – and the market is only just underway.

Micromobility has grown exponentially in the past few years. Though the industry faces a number of significant hurdles. First, the sector faces local regulation, due to safety hazards and disorganization (for ex. e-scooters, all over city streets and side-walks). Companies in the space also face high costs from poor unit economics (this is a major challenge for e-scooter startups). Also, the safety of pedestrians, consumers, and citizens is critical to ensure scaled usage. Any of these challenges alone can hold back the proliferation of micromobility.

As a result, many of the leading e-scooter companies, and other micromobility options, have been unable to operate in various cities across the country because of the concerns from local governments and citizens. Additionally, the rider experience could be dramatically improved due to the current chaos in the streets felt by consumers- and there is also a lack of vehicles that are reliably charged for riders. The current “gig economy” for charging electric lightweight vehicles has been taking significant chunks away from the overall revenue of micromobility companies.

But consumer demand for micromobility options is growing like crazy (total addressable micromobility market is expected to be $500B by 2030). In the last few years, demand for last-mile mobility options has surged (including autonomous delivery). Just several weeks ago, New York City permitted the first e-scooters to roam the streets of the Bronx this summer, and would expect the eventual expansion into Manhattan. Deployment in New York had been a major tipping point in the rideshare market for mobility companies such as Uber and Lyft.

Overall, we are just scratching the surface of the light electric vehicle market. Many other micromobility vehicles are yet to be piloted, largely deployed, and other technologies, or other types of small vehicles, with various applications, will be created.

In terms of value creation, and future impact, micromobility is a critical part of reducing emissions created by the transportation sector. The future will consist of tens of thousands of electric charging hubs in both cities and rural areas for an array of micromobility options, not just e-scooters - which usage can be seasonal and greatly impacted by the weather - but other products such as autonomous delivery robots that can perform last-mile functions any time, and much more.