Escalating Road Congestion Fueling Demand for Two-Wheeler Sharing Services in India
With the growing requirement for affordable and convenient mobility solutions, the popularity of two-wheeler sharing services is rising rapidly in India. The emergence of these services has eliminated the need for vehicle ownership, which has, in turn, reduced the expenditure of people. This is because owning a vehicle is quite expensive because of various associated costs such as insurance costs, maintenance costs, and parking expenses. Due to the surging internet penetration, these sharing services are now accessible to the masses.
Due to the above-mentioned factors, the demand for two-wheeler sharing services is growing rapidly. This is driving the advancement of the Indian two-wheeler sharing market. According to the estimates of P&S Intelligence, a market research company based in India, the value of the market will grow from $31.1 million in 2019 to $94.0 million by 2025. Furthermore, the market is predicted to progress at a CAGR of 20.2% between 2020 and 2025.
Rental, scooter sharing, and bike taxis are the most widely availed two-wheeler sharing services in India. Out of these, the demand for the bike taxi service is predicted to rise rapidly in the years to come. This will be because of the growing popularity of on-demand two-wheeler sharing services and the soaring expansion of the two-wheeler sharing service providing companies in the tier-2 and tier-1 cities all over the country.
Geographically, the Indian two-wheeler sharing market recorded the highest growth in the southern region and this trend is predicted to continue in the forth coming years. This is credited to the fact that several two-wheeler sharing services providing companies and firms are present in various Southern cities such as Chennai, Hyderabad, and Bengaluru. Moreover, many new two-wheeler sharing services providing organizations initially launched their operations in the southern region of the country.
Hence, it is safe to say that the demand for two-wheeler sharing services will shoot-up in India in the coming years, mainly because of the rising requirement for affordable and convenient mobility solutions and the increasing road congestion in the major cities and towns of the country.
Source: P&S Intelligence