The global bike rental market is expected to reach USD 4.00 billion by 2025. Increasing penetration, easy access, attractive pricing, and support of local authorities are among the key driving factors driving the growth of bike rental services. Leveraging of digital platforms by service providers is also expected to add to the growing adoption of rental services in the coming years.
Improvement in navigation technology is expected to be a focus area for service providers in the coming years. Operators are installing GPS system for tracking bikes in order to protect bikes from theft or loss.
Over the past few years, global bike rental market has witnessed a substantial increase in venture capital investments. Majority of the players operating in the global market are raising funds through venture capital financing for expanding their business reach and deploying a larger fleet.
For instance, ofo, one of the prominent players operating in the Chinese bike-sharing market raised USD 866 million from Alibaba to expand their business reach. The significant rise in venture capital funding across the market is expected to drive growth in the coming years.
The penetration of dockless bike rental services has witnessed substantial increase on a global level. Furthermore, gaining popularity of income-based bike-share discount schemes coupled with the increasing awareness among consumers about the necessity to reduce carbon footprints is expected to increase the growth opportunity for bike rental services in the near future.
In 2017, docked rental services dominated the market accounting for more than 75.0% of revenue share. However, dockless bike rental service is expected to grow at a higher CAGR of over 19.0% in the coming years. The proliferation of internet of things (IoT), the global positioning system (GPS), and mobile app-based payment systems have eased locating, tracking, and payment activities, which is expected to add to the growing adoption of rental services.
Asia Pacific was the largest market for bike rental services in 2017. The region held more than 42.0% share of the overall market with China being the leading contributor. China has witnessed the entry of several new players in the past few years. Investments from private equity players have enabled bike sharing operators to expand their business in the country.
The global market is highly competitive in nature. Companies operating in the market are focusing on expanding their geographic reach through mergers & acquisitions and are leveraging the venture capital route to finance their operations. Mobike, ofo, and Lyft are some of the key service providers operating in the market. Mergers & acquisitions have been a key strategy among potential participants. For instance, in June 2018, Lyft completed the acquisition of Motivate, the operator of Citi Bike in New York City for a sum of USD 250 million.
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Hexa Research has segmented the global bike rental market report based on product, and region:-
Segmentation by product
• Docked bikes
• Dockless bikes
Segmentation by region
• North America
• Asia Pacific
• Rest of the World
Key players analyzed:
• ofo Inc.
• Lyft, Inc.
• Social Bicycles Inc.
• Vancouver Bike Share Inc.
• Neutron Holdings, Inc. dba Lime
• Social Bicycles Inc. dba JUMP
• PEDL (Zoomcar)
• Ola Pedal
• Yulu Bikes Pvt Ltd