Author: Benjamin Hindson, Digital Economy Chief Commercial Officer, AON
It’s been a busy year for micromobility – and given that almost half (46%) of respondents in a McKinsey consumer survey are open to replacing their private vehicles with other modes in the coming decade – it is clear that it will continue to be one of the hottest sectors to watch in 2024.
From the rise of mobility hubs to the boom in micro cars, here are seven top trends likely to transform mobility.
Growth in Mobility as a Service
In recent years, more people have looked at multi-modal transport and expanding the mix of transport options they take. That means not just relying on the car or the bus to make a journey, but using a combination of options from scooter, bike, taxi, to car rental. It’s one reason why we’re seeing growth in MaaS represented by super transport apps where users can book and pay for a taxi, rent a car, book a train ticket, or take out a scooter or bike, all through one single channel.
Given this trend, micromobility providers and operators can afford to be niche in the services they offer because they are being plugged into a single channel that offers users access to other mobility operators and providers.
The Rise of Mobility Hubs
There is likely to be a continued rise in multi-modal hubs – physical areas where customers can access a number of transport options, centred around an existing train station or taxi hub. As we all get more connected – with the arrival of smart cities – mobility hubs will be critical in helping people to move around in new and effective ways.
Better Use of Data and Telematics
In the micromobility space, there is more data being collected and analysed, enabling operators to compare factors like night time vs daytime riding, first time vs multiple time users, notifications as to whether there has been an incident or vandalism, or whether the scooter has been ridden on the pavement or the road. This richness of data will feed into painting a better picture of the customer, their safety, and how they are moving in different zones. It’s the beginning of a conversation that starts to understand the interconnectivity of risk through data, not just by focusing on typical crash hazards, but by taking into account a range of different factors.
Increased Regulation and Growing Personal Ownership
It’s likely that more countries and cities will follow the trend of operating a tender process for micromobility operators to run their services in a particular town or city. New UK legislation is also expected around the use of e-scooters which could accelerate their private use. Could that impact the business model for operators? It’s worth emphasising that shared bike schemes do well despite the widespread private ownership of bikes.
More regulation is to be welcomed provided it is proportionate and could help in areas like fire risks from poorly designed vehicles.
Design Evolution
Micromobility vehicles have gotten better over the years; they are more sustainable, last longer, and are being repurposed and recycled at the end of their lifespan. In 2024 there is likely to be a continued evolution of the vehicles and their design. The development of the micro car is also expected to pick up pace. More vehicles like the Citroën Ami – pods for urban mobility – will be seen on city streets.
More Consolidation and M&A
As venture capital funding gets more expensive for operators who, overall, are not yet profitable, it creates an environment with greater potential for consolidation and M&A, allowing businesses to take advantage of scale and get to profitability a lot quicker. The rate of M&A could pick up in 2024 to accelerate business models.
Greater Insurance Competition?
From an insurance perspective, there is still a good market appetite for general liability cover for micromobility operators, especially where the risk is placed using brokers who understand the risk and the business model. Rider liability, however, is more challenging. It’s likely to be more of the same next year until more insurers enter the micromobility scene. There’s still a hesitancy for new insurer entrants because of a lack of understanding of how to apply the data to their existing models. But, for the right insurers there are opportunities to get involved and create competition. If that happens next year, micromobility operators will be able to take advantage of much needed competition.
…and Micro-Mobility Will Return to Paris
By the time of next year’s Paris Olympics in July, it will be interesting to see how many of these themes have played out in the first half of 2024, but in the city which recently banned rented e-scooters from its streets, micromobility proponents will be pleased to see a sponsored range of 250 “personal battery electric vehicles – seated C+walkS and standing C+walk”, moving athletes, organisers and volunteers around the venues in Paris. A reminder, if any was needed, that whatever happens next year, micromobility will continue to make the headlines.
Aon provides future mobility businesses who are experiencing differentiated challenges because of their business models – with new solutions to solve for their emerging needs. From those looking to evolve mature business models to those driving rapid growth from a start-up, we are a partner supporting a client’s growth cycle, helping them to make better decisions to protect assets, attract and retain the best talent and control risk. Contact Benjamin Hindson Benjamin.hindson@aon.co.uk
Whilst care has been taken in the production of this article and the information contained within it has been obtained from sources that Aon UK Limited believes to be reliable, Aon UK Limited does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the article or any part of it and can accept no liability for any loss incurred in any way whatsoever by any person who may rely on it. In any case any recipient shall be entirely responsible for the use to which it puts this article.
This article has been compiled using information available to us up to 08/11/23. See more mobility and digital economy insight from Aon.
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