Deconstructing the Micromobility Phenomenon
A strategic analysis of crucial success factors
Urban mobility is undergoing drastic changes. Increasing traffic density and environmental pollution represent a serious challenge for cities. Numerous start-ups are tackling the problem with innovative mobility services, focusing on shared, electrified mobility with miniature vehicles such as scooters and bicycles, known as micromobility. Within just two years, these start-ups have grown to become dominant players in the market.
This strategy paper shows what determines a successful micromobility service and how it is composed.
- To compete in the field of micromobility, service providers are advised to further invest in device development, as the trend is moving toward purpose-built vehicles with sophisticated connectivity coupled with improved sturdiness to enhance durability
- Software and apps are essential enablers for micromobility. Service providers can leverage software’s inherent potential by not only focusing on its base functions, but also ensuring that it is scalable and extendable
- Micromobility service providers wishing to remain competitive should focus on a number of critical factors: device lifetime is the biggest lever to achieve profitable operations. According to industry experts, device life cycles must be prolonged using highly durable, purpose-built vehicles to accomplish unit economics that contribute to the bottom line and make business scalable
- In order to tap the full potential of micromobility, there is no way around ecosystem integration. If service providers are not on good terms with city governments, it is questionable whether the service offering can be sustained over a longer period
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