Micro-mobility companies caught at a crossroads – study

Shared micro-mobility operators have been eager to expand their operations, paying little attention to developing a sustainable business model. However, now low on the funding that allowed them to run unprofitable operations, they are forced to move away from growth-based strategies.

Maite Bezerra, smart mobility & automotive industry analyst at ABI Research, explains, "After years of rapid but disorderly expansion, most players have high idle vehicle rates and low profitability in various markets due to a mismatch between vehicle supply and demand.

"To thrive in the shared micro-mobility market, operators must optimally relocate or expand operations based on data-driven insights and analytics rather than intuition. It is also imperative to adopt measures to reduce costs that have skyrocketed with the enhancement of vehicle durability, safety, electrification, and recent restrictions and demands made by city authorities."

Vehicle charging accounts for 50% of the operating costs per vehicle. Combined with rebalancing, they are the highest operational costs in shared micro-mobility.