In recent years, electric scooters and other means of individual mobility (MIM) have become an integral part of the urban landscape. However, along with their popularity, the number of incidents associated with their use is growing.
2024 was marked by tightening control over MIM users. New fines and restrictions have been introduced to improve the safety of pedestrians and other road users. These measures will certainly improve the culture of using electric scooters and reduce the number of accidents involving them. However, the new rules may lead to a decrease in the popularity of MIM as an alternative mode of transport and an increase in the financial burden on users.
One of the key innovations is the possible introduction of tests for MIM users. These tests may include testing of road movement rules knowledge and management skills, potentially improving safety but complicating access to use of this mode of transport. This approach can be the middle ground between complete freedom and excessive restrictions.
Speaking about the Western experience of regulating MIM, one can cite the example of Germany, France and Italy, where the rules for the use of electric scooters are clearly regulated. In these countries, the maximum speed is limited to 20-25 km/h, and in pedestrian zones – up to 6 km/h. There are also strict equipment requirements: lights, sound signal, reflectors, and brake system. It is important to note that responsibility for accidents involving MIM in these countries is equated with accidents with motorized means, which significantly increases the responsibility of users.
Despite the tightening of rules, the scooter-sharing market in Russia continues to develop actively. It is important to pay attention to the successful IPO of the Whoosh electric scooter rental service, which took place on December 14, 2022 on the Moscow Exchange. The placement price amounted to 185 rubles per share, and the company’s capitalization reached 20.6 billion rubles. 2.3 billion rubles were attracted, with more than 20,000 private investors becoming shareholders. This fact testifies to the high interest of investors in this market segment.
Scooter share operators’ revenues are also showing impressive growth. For example, here are the data about the financial performance of a major market player: in 2023, revenue reached 10.7 billion rubles, an increase of 67% compared to 6.4 billion rubles in 2022. This growth is due to several key factors: the number of trips increased by 87%, reaching 103.9 million, the average number of trips increased by 34%, and the geography of presence expanded from 40 to 55 cities.
Such indicators indicate a growing demand for kicksharing services among Russians. Companies continue to increase their customer base and the number of trips, which allows them to invest in business expansion and develop strategic projects.
However, along with the growth of income, the debt burden of operators is also growing. At the end of 2023, the net debt of one of the largest players amounted to 8.5 billion rubles against 3.5 billion rubles a year earlier. This is due to active investment in business expansion and development of strategic projects.
The Russian kicksharing market has great growth potential. By 2026, it can grow 3 times – up to 39.5 billion rubles. Large players with significant market share will benefit the most from changing conditions and significantly improve key metrics.
It is important to emphasize that the MIM and scooter sharing market is at a turning point. On the one hand, we see increased regulation and increased safety requirements. On the other hand, the continuing market growth and investor interest. The key success factor in the coming years will be the ability of operators to find a balance between complying with the new rules and maintaining the attractiveness of the service for users.
Thus, despite the tightening of rules, the scooter sharing market in Russia continues to show high growth rates. However, operators will have to solve a number of serious problems related to ensuring user safety and compliance with new regulatory requirements. The further development of the industry and its place in the transport system of Russian cities will depend on how successfully they cope with these challenges.
Two scenarios are possible. If severe restrictions are introduced, similar to European ones, the market may face a serious drop in demand, which will lead to a decrease in operators’ revenue and a loss of investor interest. Instead of a projected three-fold growth by 2026, this could cause the market to stagnate or even shrink. On the other hand, if operators are able to adapt to new conditions by investing in user safety and training, the market will continue to grow, albeit at a more moderate pace. This will maintain the confidence of regulators and investor interest, ensuring the further development of the industry. The final result will depend on the ability of market players to find the optimal balance between regulatory requirements and user needs.
By Alexey Tuzov, independent expert in the transport industry