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Indian two-wheeler sharing market grows on rising demand

The pollution levels in India are increasing rapidly; as per the World health statistics 2016, World Health Organization, approximately 1.5 million people in the country died because of air pollution in 2012. In order to deal with this grave issue, the Indian government is taking several initiatives.

One of the solutions for dealing with this problem is the utilization of two-wheeler sharing services, which is being encouraged by the government as well as the environment protection agencies. In addition to this, the people are also becoming increasingly aware regarding the surging pollution levels in the country, which is why the automobile industry has been witnessing a shift toward different electric two-wheelers.

According to a report by P&S Intelligence, valued at $31.1 million in 2019, the Indian two-wheeler
sharing market is predicted to generate a revenue of $94.0 million by 2025, advancing at a 20.2% CAGR during the forecast period (2020–2025). Motorcycle/scooter and bicycle are the two major vehicle types through which two-wheeler sharing services are offered. Between these two, the largest demand in 2018 was created for motorcycle/scooter and the category is also predicted to register the faster growth in demand during the forecast period.

Urban Road Congestion is a Major Factor Driving the Growth of the Market. The category is further divided into rental, bike taxi, and scooter sharing. Out of these, the highest demand in 2018 was created for bike taxi services and the situation is projected to remain the same in the coming years as well.

The reason for this is the rising acceptance of bike taxis in the national capital region and Hyderabad and expansion of operation of market players in cities. Geographically, the southern region is expected to account for the largest revenue share of the market during the forecast
period. This is because most of the two-wheeler sharing companies are present in cities of southern region such as Hyderabad and Bengaluru.

Increasing Number of Investments is Key trend Observed in the Market. One of the key driving factors of the Indian two-wheeler sharing market is the low price and convenience of the services. By adopting two-wheeler sharing services the commuters do not need to take the hassle of bearing costs, including insurance cost and vehicle maintenance, and worry about charging of vehicles and parking arrangements.

Moreover, two-wheeler sharing services are mostly available on a 24/7 basis throughout the year, thereby assuring the users of availability of vehicles whenever they need. The ride can be booked directly from the company’s application, same way as a cab is booked, however, two-wheeler sharing services are 40–60% cheaper than a cab ride.

Apart from being convenient and cost-effective, two-wheeler sharing services also enable the users to tackle the problem of road congestion. India has a large population base, in addition to which the economic growth in the country has resulted in an increase in the disposable income of the people.
Attributed to this, more people are now able to afford vehicles, which has led to increased traffic on the roads of the country. This problem is primarily persistent in the metropolitan cities, such as Delhi and Bengaluru, during the peak hours. Since two-wheelers take less space on roads, their increased usage can help deal with the problem of road congestion in the country.

The post Indian two-wheeler sharing market grows on rising demand appeared first on thesharingeconomyradar.com.

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