Some of the biggest e-scooter startups are joining hands with the ride-hailing companies to earn profits together
Electric bikes and scooters are growing in popularity and have efficiently become a convenient alternative for transportation, resulting in multiple acquisitions within less time. Lyft has confirmed the acquisition of electric bike sharing company Motivate, whereas Uber has acquired e-bike company Jump. We have also heard about Ford acquired scooter startup Spin for around $40 million.
Current Market Scenario of ride hailing companies and e scooter startups :
According to the reports, Uber is again set to acquire an electric scooter company. The ride-hailing giant is reportedly having acquisition talks with e-scooter startups Bird and Lime. A deal with Bird, which is the larger scooter rental company of the two could result in a multibillion-dollar business. They are hoping to announce the deal before the end of the year.
It is notable that Uber already holds a minor stake in Lime. Also, Uber has agreed to rent its e-scooters through its app.
The phenomenon has become widely popular in the US and the electric scooter craze is slowly spreading in Europe also. The ride-hailing companies just want the e-scooter sharing to be added to their app. Estonian ride-hailing firm, Bolt has launched its electric kick scooter-sharing service in Madrid following a rollout last year in Paris.
The companies are aware that beating traffic has become a huge issue in urban areas. Many of the trips are covered conveniently with an electric scooter than a car with a driver. Bolt co-founder and CEO Mark Villig explained that by bringing in e-scooters, it became easier to save time and money for the customers. The move has marked a stepping stone towards new mobility options beyond ride-hailing.
Looking at the bigger picture the e-scooter companies which are running low on cash either need to raise new money or merge with some other companies. And the bigger companies like Uber have their own agenda while buying smaller startups. For example, before acquiring Jump bikes, Uber made them available in some areas using its app. Uber is doing the same with Lime. Somehow, Uber doesn’t want the history to repeat itself, having another competitor like Lyft.
The two startups, Bird and Lime are reportedly having informal discussions about a merger. Though the discussions have been on and off from some time, they might become true in no time. As consolidation came to ride-hailing, it is expected for the scooter sharing companies also. A merger can help the e-scooters to maintain stability in the market rather than being acquired by Uber or Lyft. The merger of e-scooters can also help them in raising more money.
According to a report in TechCrunch, even the Chinese bike-sharing company, Mobike is not left untouched by the recent trends. It has been acquired by Meituan-Dianping for $2.7 billion. The executives of Mobike ride-hailing company are raising $20 million from the outside investors to spin-off their European operation. Mobike will be retaining 49 percent share out of the spun-off operations. The European business is valued at around $100 million.
Mobike is currently active in the UK, France, Germany, Italy, Spain, and The Netherlands. The company has shuttered some of its operations but it is also rolling out its services in other cities, the most recent being Padua, Italy.
Meituan is publicly traded and valued at around $42 billion. They are rebranding Mobike as Meituan Bike to bring it closer to the parent company and wash off the bad reputation that Mobike picked up along the way. Meituan has put a stop on an aggressive expansion of Mobike.
Also, Hongji Bike, which was co-founded by the original co-founder of Mobike has stated that they have picked up a lot of engineers from the company to ramp up efforts to build bikes, e-scooters and other personal vehicles for many on-demand startups. Lime is one of the company to have ordered 40000 bikes from them. Mobike seems to have a bright future with Meituan.
Despite the making and crashing of the companies, the e-transportation business with the taxi booking apps as well as the e-scooter sharing apps is expanding into multi-modal transportation. More acquisitions are expected in the coming days.
If you are thinking of getting into the e-scooter sharing app development you need to consider the above facts and study the industry to find yourself a good investor and raise a good amount of money. To give a tough competition to the ride-hailing and e-scooter giants, you need to have a good number of users to sustain in the industry.
To do that, you need to go for a good e-scooter rental app development. The e-scooter sharing app is the best investment to avoid future insecurities in business and reach more and more audience every day.
Here is the cost of development of an e-scooter app with basic features.
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