India Two-Wheeler Sharing Market to See Huge Growth & Profitable Business

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Two-wheeler sharing service is gaining traction in India, owing to its ability to provide a low-priced conveyance solution. Owing to the increasing availability of this service, people are not required to spend huge money on the purchase of two-wheelers and bear maintenance costs and insurance costs and other responsibilities. Moreover, people in the country can avail this service by using smartphone applications that are easily available on the iOS application store and google play store. In comparison to cab services, motorcycle/scooter sharing services are very cheap.

The low costs associated with motorcycle/scooter sharing services are expected to drive the Indian two-wheeler sharing market at a healthy CAGR of 20.2% during the forecast period (2020–2025). According to P&S Intelligence, the market was valued at $31.1 million in 2019, and it is projected to generate $94.0 million revenue by 2025. Moreover, the increasing government support, in terms of incentives and subsidies, regarding the incorporation of electric vehicles (EVs) in mobility sharing fleets, owing to the soaring environmental concerns, is also supporting the market growth.

In recent years, two-wheeler sharing service providers in India have been engaging in new service area expansions and securing investments from several investors and leading shared mobility providing companies. For instance, in September 2018, WickedRide Adventure Services Pvt. Ltd. (Bounce) raised $3.0 million in debt financing for its pan-India expansion. InnoVen Capital Pte. Ltd. was the leading financer in Bounce. Likewise, in June 2019, Vogo Automotive Pvt. Ltd. (Vogo) raised $3.7 million (INR 25 crore) to expand its two-wheeler rental service in India. Alteria Capital Advisors LLP was the leading investor in this company.

Currently, the Indian two-wheeler sharing market is dominated by Roppen Transportation Services Pvt. Ltd. (Rapido), Royalbison Autorentals India Pvt. Ltd. (Royal Brothers), WickedRide Adventure Services Pvt. Ltd. (Bounce), Vogo Automotive Pvt. Ltd. (Vogo), and Uber Technologies Inc. (UberMoto). These companies are offering rental, bike taxis, and bicycle sharing services to their customers. These companies are helping in bridging the first and last mile connectivity gap by opting for partnerships. For example, in May 2019, Uber Technologies Inc. (Uber) signed a partnership agreement with Yulu Bikes Pvt. Ltd. (Yulu) to offer bicycle sharing services to its clients.

These service providers offer station-based and dock-less bicycle and rental, bike taxi, and scooter sharing services to encourage the adoption of such services. In recent years, people in the country have preferred bike taxi services over other two-wheeler sharing services, due to the surging acceptance of bike taxis in Hyderabad and the National Capital Region (NCR). Additionally, the mounting focus of mobility service providing companies on expanding their operations is also encouraging the adoption of bike taxi services in the country.

Geographically, the southern region accounted for the largest share in the Indian two-wheeler sharing market in 2019, and it is expected to continue this trend throughout the forecast period. This can be owed to the strong presence of two-wheeler sharing service providing companies and numerous start-ups in southern cities, such as Chennai, Bengaluru, and Hyderabad. Whereas, the eastern region is expected to witness the fastest growth during the forecast period, owing to the escalating focus of market players on the untapped market in the cities of Assam and West Bengal.

Therefore, the plunging costs of motorcycle/scooter sharing services and the mounting focus of market players on expansion will encourage the uptake of two-wheeler sharing services across India in the years to come.