Explainer: Why the micromobility market in the GCC is set to take off

The region has seen the rise of e-scooter players even as discussions around urban mobility take centre stage

The e-scooter industry is still in its nascent stage in the region. How quickly is it growing?

The micromobility market is huge, potentially bigger than ride sharing – and as a relatively new industry, our business has already proven that it’s strong. Lime surpassed 100 million rides across the globe, and has expanded to more than 120 cities, 30 countries and five continents. A Barclays study suggests micromobility will be a $800bn industry by 2025, with roughly 30 per cent of the market coming from the Middle East and Europe and about 20 per cent from North America.

Urbanisation, traffic congestion, pollution will all accelerate the trend. By 2050, it’s estimated that 68 per cent of the total population will be living in cities – that’s over four billion people. We’re not just thinking of what people need to get around cities today, but how to predict what they’ll need tomorrow.

What are the main challenges facing urban mobility in the region?

As the population of cities increases, the existing transit system and infrastructure will struggle to keep up with the increasing demand for transportation space, and congestion and pollution will continue to climb. The transportation sector accounts for a third of our CO2 emissions, and if only a fraction of short-distance vehicle trips in city centres were replaced with scooter and bike trips, cities could reap significant benefits.

The GCC is a great region for electric scooters since there is a need for first/last mile connectivity. In Abu Dhabi, we’re already seeing impressive numbers showcasing a shift to new modalities and the need for more car alternatives. Our rider’s average ride time in the UAE capital is about 14 minutes and some people are travelling as far as 19km.

There have been justified fears about e-scooter safety – how can they be addressed?

We know that micromobility can only be successful if riders and communities feel safe. Last year we built out a Trust and Safety team, and we continuously innovate on hardware with enhanced safety features, new technologies, and safety programming. We are constantly developing and implementing tools in the app to further promote safe riding and scooter use.

To make each city safer, cities also need more and better infrastructure to protect today’s new micromobility options.

Do you expect to see more regulations in the market?

Yes, we do, and regulation is much needed. Lime is committed to working with cities to develop appropriate regulations that allow micromobility to thrive, while simultaneously meeting their transportation, sustainability and safety goals. What is critical though, is to have constructive regulation that improves the use of micromobility and does not limit its use.

As a global operator, do you expect to see more competition from local startups?

Yes, local startups are expected, and we have been seeing them in most markets we operate in. However,

we also noticed that startups that don’t establish scale are not able to sustain themselves. Local startups usually do not develop hardware and software that pushes the envelope on rider safety and experience. As such, they find themselves struggling to gain traction or to compete with bigger operators that invest heavily in product and hardware development. Consolidation in the industry started and we expect more of that happening. This is normal in any industry where the barrier to entry might seem low. Local startups might have an advantage in markets global players are hesitant to enter in. If they manage to establish product market fit, then they are on to something.

Lastly, what is the future of the e-scooter market? Where is it headed?

We’re witnessing the great unbundling of the car where the old model of single car ownership is dying and being replaced by the right vehicle for the right trip at the push of a button - with the introduction of ridesharing, and now small vehicles for short trips (i.e. scooter) and bigger vehicles for longer trips. Lime will continue to focus on connecting people in cities in the 1-8 km range as communities continue to grow, and I believe that the technology in the industry will continue to get smarter and more sustainable.

THE GCC IS A GREAT REGION FOR ELECTRIC SCOOTERS SINCE THERE IS A NEED FOR FIRST/LAST MILE CONNECTIVITY