UAE Bike Sharing Market Research Report 2023

UAE Bike Sharing Market Synopsis

The UAE Bike Sharing is Expected to Grow at a Significant Growth Rate, and the Forecast Period is 2023-2030, Considering the Base Year as 2022.

• The UAE bike-sharing market refers to the industry within the United Arab Emirates that provides shared bicycles and electric scooters (e-scooters) for short-term rentals to the public. This innovative transportation concept allows users to conveniently rent bikes and e-scooters for short distances, typically through mobile apps or docking stations strategically placed in various urban areas. The market has experienced significant growth, particularly in major cities like Dubai, Abu Dhabi, and Sharjah, where bike-sharing services have become a popular option for both residents and tourists.
• Various service providers operate in the market, offering a range of options, including traditional bicycles and electric scooters, with the latter being particularly popular due to their ease of use in navigating the urban landscape. The competition among operators has driven continuous innovation, leading to improved technology and service offerings.
• While the market shows promising growth and popularity, challenges remain, including ensuring traffic safety for cyclists, addressing the need for better cycling infrastructure, and ensuring proper maintenance of shared bikes and e-scooters.

Top Key Players:

Careem Bikes (UAE), Byky Stations (UAE), Arnab (UAE), Lime (US), Bird (US), Circ (Germany), Mobike (China), Jump Bikes (US), Yulu (India), Nextbike (Germany), OBike (Singapore), Aventon Pace (US), VeoRide (US), Wheels (US), Hive (UAE), Beam (UAE), Hawk (UAE), S'COOL Bikes (UAE), ShareaBike (UAE), Yassir (UAE), and Other Major Players.

The UAE Bike Sharing Market Trend Analysis

The Increasing Investment in Bike Sharing Infrastructure by Governments and Private Companies

• The increasing investment in bike-sharing infrastructure by governments and private companies is a significant driver fueling the growth and popularity of bike-sharing services in the UAE and around the world. This trend has emerged as a response to various factors such as environmental concerns, urban congestion, the promotion of sustainable transportation, and changing consumer preferences.
• Bike-sharing initiatives align with environmental goals to reduce carbon emissions and promote eco-friendly transportation. By providing alternatives to traditional fossil-fuel-powered vehicles, bike-sharing infrastructure investments contribute to reducing the environmental impact of transportation.
• By creating dedicated bike lanes and investing in bike-sharing infrastructure, governments and companies encourage physical activity and healthier lifestyles. People are more likely to cycle when they feel safe and have dedicated spaces to ride, positively impacting public health outcomes.

Increasing Popularity of Cycling as A Mode of Transportation

• The increasing popularity of cycling as a mode of transportation presents a significant opportunity for the bike-sharing market in the UAE. As more people recognize the benefits of cycling and choose it as their preferred means of getting around, bike-sharing services stand to gain in several ways.
• The growing user base for cycling opens up a larger market for bike-sharing services, as individuals are more likely to explore bike-sharing options for convenient and flexible travel, especially for short trips or last-mile connectivity.
• The popularity of cycling extends to tourists visiting the UAE, providing an eco-friendly and enjoyable way for them to explore the cities, visit landmarks, and experience the local culture.
• The increasing acceptance of cycling as a mainstream transportation option can reduce barriers to entry for potential bike-sharing users who may have been hesitant to try the services before.
• Moreover, the alignment of cycling with health and sustainability promotion further enhances the appeal of bike-sharing services as a greener alternative to traditional transportation options.

UAE Bike Sharing Market Segment Analysis

Bike Sharing market is segmented into the Bike Type, Sharing System, and User Type. By Bike Type, the E-bike segment is Anticipated to Dominate the Market Over the Forecast Period.

• Traditional bicycles are the conventional type of bikes that require pedaling for propulsion. While they remain popular among certain users, their market share is expected to be overshadowed by the rising demand for e-bikes.
• E-bikes, on the other hand, are equipped with electric motors that assist the riders in pedaling. These bikes offer a convenient and effortless riding experience, particularly in urban areas. The e-bike segment is anticipated to dominate the UAE bike-sharing market over the forecast period for several reasons.
• e-bikes are more accessible to a wider audience due to their ease of use and reduced physical exertion. This makes them suitable for older individuals or those with limited physical abilities. Secondly, electric motor assistance enables faster commuting, making e-bikes a practical choice for daily transportation and short-distance travel.
• Moreover, the hot climate of the UAE makes e-bikes more appealing, as they provide a comfortable and sweat-free option for users. This aligns with the country's environmental consciousness, as e-bikes reduce carbon emissions and contribute to greener transportation alternatives.
• Ongoing technological advancements in e-bike technology, such as improved battery life and lightweight designs, enhance the overall user experience and encourage higher adoption rates.

UAE Bike Sharing Market Country Analysis

• The UAE government, along with city municipalities, has played a crucial role in supporting and promoting bike-sharing initiatives. They have invested in developing dedicated bike lanes, cycling infrastructure, and bike-sharing docking stations, making it easier for users to access and utilize bike-sharing services. The commitment to creating a bike-friendly environment has been a driving force in encouraging the adoption of bike-sharing as a sustainable and eco-friendly transportation option.
• The rapid urbanization of cities like Dubai and Abu Dhabi has led to increased traffic congestion, making it essential to find efficient transportation alternatives. Bike-sharing services offer a practical solution for short-distance travel within busy urban areas, providing users with a cost-effective and time-saving mode of transportation. As traffic congestion remains a significant concern, bike-sharing's popularity is likely to continue growing.
• The UAE, like many other countries, has been placing greater emphasis on sustainability and reducing carbon emissions. Bike-sharing services align well with these environmental goals, as they promote cleaner transportation methods. By choosing bike-sharing over traditional fossil-fuel-powered vehicles, users actively contribute to reducing their carbon footprint, making it an attractive option for eco-conscious individuals.

COVID-19 Impact Analysis on UAE Bike Sharing Market

• During the pandemic's peak, the UAE, like many other countries, implemented strict lockdown measures to control the spread of the virus. These restrictions resulted in reduced outdoor activities and limited movement, leading to declining demand for bike-sharing services. With people staying at home and avoiding unnecessary travel, the usage of bike-sharing services for commuting and leisure purposes significantly decreased.
• To mitigate the spread of the virus, some bike-sharing operators temporarily suspended their services or limited their operations during the peak of the pandemic. Also, bike-sharing operators had to implement additional health and safety measures, such as increased cleaning and disinfection of bikes and docking stations, to reassure users and promote safe usage.
• While the immediate impact was challenging, the pandemic may have influenced some long-term changes in travel behaviors. The increased focus on sustainability and personal health might drive more people to opt for biking and bike-sharing services in the future.

The revenue of the bike-sharing market in the UAE has shown steady growth from 6.85 million USD in 2018 to 8.67 million USD in 2022. This upward trend reflects increasing consumer acceptance of bike-sharing services, driven by government support for sustainable transportation options and rising environmental consciousness. Despite the challenges posed by the COVID-19 pandemic, the market demonstrated resilience, with revenue continuing to rise in 2020 and 2021. The consistent revenue growth indicates a strong and expanding bike-sharing market in the UAE, with potential opportunities for further investment and technological advancements to meet the growing demand and enhance user experiences.

Top Key Players Covered in The UAE Bike Sharing Market

• Careem Bikes (UAE)
• Byky Stations (UAE)
• Arnab (UAE)
• Lime (US)
• Bird (US)
• Circ (Germany)
• Mobike (China)
• Jump Bikes (US)
• Yulu (India)
• Nextbike (Germany)
• OBike (Singapore)
• Aventon Pace (US)
• VeoRide (US)
• Wheels (US)
• Hive (UAE)
• Beam (UAE)
• Hawk (UAE)
• S'COOL Bikes (UAE)
• ShareaBike (UAE)
• Yassir (UAE), and Other Major Players.

Key Industry Developments in the UAE Bike Sharing Market

In December 2022, Wheels Donlen and LeasePlan USA announced their merger, becoming a unified and industry-leading fleet management and mobility company. The transaction was completed when Athene, the majority stakeholder in Wheels Donlen, purchased LeasePlan USA from LeasePlan Corporation. This strategic merger created a powerhouse in the North American fleet market, providing the combined organization with significant potential to shape the future and revolutionize the delivery of mobility services to clients.