India Two-Wheeler Sharing Market Predicted to Meet $94 Million by 2025
NEW YORK, Oct. 03, 2019 (GLOBE NEWSWIRE) -- According to the market research report published by P&S Intelligence, the Indian two-wheeler sharing market share was valued at $19.2 million in 2018, which is projected to reach $94.0 million by 2025, witnessing a CAGR of 20.2% during the forecast period (2019–2025). In the vehicle type, the motorcycle/scooter category dominated the market during the historical period.
During the forecast period, the market for motorcycle/scooter sharing service is expected to witness faster growth. This is ascribed to the fact that there are many players providing motorcycle/scooter rental and e-hailing services, and their lucrative two-wheeler sharing services are making the Indian people to shift toward using shared motorcycles and scooters from using other modes of transport.
The Indian two-wheeler sharing market is presently filled with various startup companies. To expand their operational areas and to increase their fleet size, they require large amount of funds. For this reason, these players have been receiving investments from investors in forms of debt funding and equity funding continuously; and most of the two-wheeler sharing companies are in talks with various individuals and group companies for funds. For instance, scooter rental company, WickedRide Adventure Services Pvt. Ltd. (Bounce) raised $72 million fund, led by Falcon Edge Capital and B Capital Group, for the expansion of its services into new cities in the near future.
Due to a large number of vehicles, such as private cars, buses, auto-rickshaws, and motorcycles/scooters, on roads in India, people are facing road congestion issue on daily basis. Most of the urban cities, such as Delhi/NCR region, Bengaluru, Mumbai, and Chennai, are facing heavy traffic. This increases the travel time of commuters. To resolve this issue of daily commuters, two-wheeler sharing companies are providing sharing services, which are convenient for travelling short distances and require less space on the roads than other mode of transport. The growth in ridership from last two-three years has shown that two-wheeler sharing rides are increasingly being used by daily commuters to reduce their travel time.