The rise of E-Scooters – challenges and opportunities
Today, there has been a rapid evolution of the electronic scooters, being an increasing trend and being widely used by customers around the world. According to the Boston Consulting Group study, it is estimated that by 2025 the e-scooter market will reach US 50 billion, with approximately 50% of the usage of consumers, located in the USA and Europe.
This conclusion is just topped with the fact that in June 2020, Berlin-based e-scooter startup TIER raised another US 25 million as the coronavirus shook up the transportation in cities.
From the other side, such rapid evolution in the micro-mobility services has created challenges for insurance companies, regulators and other parties to keep up and develop solutions. To gain more in-depth insight into the speedy rise of e-scooters, created challenges and opportunities, read further the article!
The speedy rise of electronic scooters
Without any doubt, urbanization has always been linked to environmental concerns with carbon emissions, increased potential risk of poor public transport and congestion on city roads. It has pushed enterprises to bring new ideas to reduce the problem, giving rise to micro-mobility solutions, aimed to mark the global carbon emissions footprint, reduce the congested roads, and grow vast popularity in the society.
Looking through the overall statistics and numbers of E-scooters, back in 2018, around five million units were sold. Why so? It is explained by the fact that the other countries were speedy following and adapting to new E-scooter industry trends, using as an unparalleled substitute for natural-resources-based vehicles. The facts mentioned above clearly explain the growth and popularity in choosing micro-mobility solutions in recent years, and unlike other markets, this market becomes loaded with huge demand.
Because of the vast popularity and usage of e-scooters and micro-mobility solutions, cities, insurers, and governors always remain under pressure to work on legal regulations, public safety, and liability issue solutions. According to the Consumer reports data, in 2019, in the USA, there have been at least 1,545 accidents involving e-Scooters indicating the potential security risks for the riders and rising the full potential for insurance products.
How about the insurance in the e-scooter industry? In terms of the insurance products provision, the first efforts have been made by two market leaders – Lime and Bird, providing limited liability insurance and accident insurance at no extra cost. This way, the e-scooter riders can hop on the E-scooter, enjoy a quick whizz across the city being fully covered.
Mobility & Insurance
Watch Nina Tamerl, Head of Innovation at Wüstenrot, Maximilian Nageler, General Manager Austria & Switzerland at TIER and Thomas Rettenwander, Business Development Manager at bsurance in a virtual panel discussion about “Mobility innovation in the new normal: How is insurance changing mobility saftey?”. Watch the full video now.