By Dillon Fitch-Polse & Caroline Kraemer
The extraordinary rise in micromobility services continues across the U.S., while the private market consolidates around a few major companies. In January 2024, the merger of TIER and Dott created the largest micromobility operator in Europe. Earlier, in September 2023, TIER sold Spin to Bird, seeming to end its U.S. presence and making Bird the largest micromobility operator in North America. However, in April 2024, Bird was acquired by Third Lane Mobility Inc. following its bankruptcy. Third Lane Mobility Inc. had shifted strategies, fostering a direct cooperative relationship with municipal governments through Bird and Spin, aiming to achieve better outcomes. Meanwhile, Lime has undergone a more steady rise to the largest and first ever profitable micromobility operator since launching in 2017. Even small bike shares are undergoing significant changes. Recently, Trek sold Bcycle to Bicycle Transit System, which had previously only operated three bike shares (Los Angeles, Las Vegas, Philadelphia). To make matters even more confusing, Bcycle generally supplied vehicles and technology to other independent operators in smaller markets, although more recently some had been owned and operated by Bcycle directly. This change may indicate a big change in the docked bike share market. Speaking of that market, in 2023, Lyft, which owns and operates some of the largest U.S. bike shares, considered selling its micromobility business. Instead, the company reversed course, then more recently scaled back dockless offerings, opting instead to partner with Spin to provide dockless scooter rides through the Lyft app, and focus back on docked bike share.
It is difficult for us to wrap our heads around all this change we read about in the news. What does it mean for micromobility services? How can and should cities be planning for micromobility services amidst all this change?
The good news is the uncertainty has not stopped the growth. A report by the National Association of City Transportation Officials (NACTO) that examines data on dockless bikes, e-scooters, and station-based bike share systems in cities across North America finds that trips in 2023 increased by 16 percent in the U.S. and 40 percent in Canada. Similarly, the North American Bikeshare & Scootershare Association (NABSA) industry report suggests similar growth and notably reports on the growing environmental sustainability of the industry. Among other research, NABSA’s report cites the American Micromobility Panel on a variety of sustainability metrics, and a continuation of that study suggests continued questions around measurement of car use reduction and transit connection. Cities looking to plan new or expanded micromobility services should check out the guides and best practices that were developed in 2019: Shared Micromobility Playbook by Transportation for America and NACTO’s Guidelines for Regulated Shared Micromobility. Specifically, don’t miss the equity section of the Shared Micromobility Playbook.
With the rise of for-profit micromobility services, many cities have been less likely to directly subsidize such services. However, we know from our research that the stakeholders from industry, government, and research on the whole think bike and scooter share should operate and be funded more like public transportation. But that means micromobility needs to be subsidized. In addition, current pricing for micromobility is likely a real barrier to growth. Unlock fees and per minute rates, the growing norm in the industry, are probably not the best way to create regular use, improve access, and reduce car use in the long term. Neither are the taxes and fees imposed on micromobility operators, especially in comparison to other transportation modes. This is why we are conducting research on micromobility pricing and transit connections in Davis and micromobility pricing in other US cities. Thinking of micromobility like public transit is also in line with the use of micromobility as a feeder to existing public transit systems, something that many cities want to see, and struggle to measure without integrated payments (still non-existent in the US).
If you want to read more research on micromobility services, please check out the BicyclingPlus Research Collaborative for research by UC Davis, and the new Journal of Cycling and Micromobility Research for studies from around the globe.
