As advancements in technology continue to transform the transportation industry, micromobility providers have been gearing up for a shift in the market in the coming years. Through subsidies, consolidation, and IPO activity, the coming months will set the stage for an anticipated transformation of the micromobility landscape. Here are our predictions for the year 2023.
Subsidies: Government subsidies are expected to be increasingly utilized in order to entice customers and foster adoption of eco-friendly modes of transportation such as e-bikes and electric scooters. Subsidies could come in the form of tax credits, public-private initiatives, and research grants, offering relief to companies in the sector while also helping to expand service coverage and eliminate barriers to entry.
Consolidation: In the next two years, we can expect to see consolidation amongst micromobility providers as companies look to consolidate resources, broaden their services, and gain economies of scale. The rush to consolidate should bring about more affordable products, increased efficiency, and increased competition.
IPOs: Recent stories of successful IPOs for the likes of Robinhood, Coursera, and even DoorDash have enabled these companies to expand. We expect the same for micromobility-focused companies, as investments continue to flow into the industry. These IPOs should provide incumbents greater access to capital and enable a growth in customer base and businesses.
The rise in e-bike subsidies, consolidation of companies, and IPO activity are indicators of a rapidly evolving industry. By the year 2023, we expect the industry to be transformed, with the sector continuing to innovate and create new solutions to the mobility needs of the public. Despite uncertainty surrounding the contours of the sector in the coming years, one thing is for sure – the micromobility sector is poised for an exciting revolution.
