With COVID-19 significantly altering consumer mobility preferences and requirements, shared mobility companies are pursuing strategies to mitigate new business challenges, especially the steep decline in demand for services.
Frost & Sullivan’s recent analysis finds that the global shared mobility market is expected to reach pre-pandemic levels by late 2021 or early 2022. Comprising of traditional carsharing, peer-to-peer (P2P) carsharing, e-hailing, ridesharing, bikesharing, demand-responsive transit (DRT), and mobility-as-a-service (MaaS), the industry has been adversely affected by COVID-19, which has significantly altered consumer mobility preferences and requirements. As a result, shared mobility companies are pursuing strategies to mitigate new business challenges, especially the steep decline in demand for services. In the short term, operators have diversified their business models to include delivery services for groceries, food and eCommerce packages. However, by 2025, global revenues for the shared mobility market are estimated to reach $1,002.84 billion, up from $305.92 billion in 2020, expanding at a double-digit compound annual growth rate (CAGR) of 12%.
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“As economies gradually open up, mobility companies have demonstrated their agility and resilience to recover, with business innovation and technology taking center stage, whether through rethinking their business models or repurposing fleets to support frontline workers and healthcare institutions during the pandemic,” said Geraldine Priya, Mobility Project Manager at Frost & Sullivan. “Consumer preference for single-occupancy modes, reduced fear of infection, and the increasing emphasis on sustainable mobility will expand the micro-mobility segment, which includes kick scooters, e-scooters, and bikesharing, over the forecast period.”
Priya added: “Globally, most governments in developed economies were also seen investing in and re-strategizing toward a revamped and more digitized public transit infrastructure to give an impetus for usage. On a regional level, the Asia-Pacific market remained the strongest as it was driven by rapid market recovery in China, which remained the least impacted market across the globe.”
To capitalize on the immense growth prospects as a result of shifting consumer trends and growing interest in adopting low-contact mobility services, market participants should consider:
• Adopting business model flexibility, including the capability to integrate with third-party platforms.
• Enabling platform readiness for MaaS, integrated platforms and government agencies, which will drive greater visibility for growth and demand.
• Leveraging data and analytics to optimize costs, improve customer experience, and drive greater service accuracy, especially for service providers.
• Developing hyperlocal strategies by understanding and addressing target customer segments’ needs and pain points while seeking new, innovative ways to improve the overall digital experience
Impact of COVID on Transportation Network, Growth Opportunities is the latest addition to Frost & Sullivan’s Mobility research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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Impact of COVID on Transportation Network, Growth Opportunities / MG22