Indian E-Bike Rental Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Indian E-Bike Rental Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The India E-Bike Rental market is valued at USD 5 million in 2020 and is expected to hit USD 10 million by 2026 and is anticipated to register a CAGR of over 10% during the forecast period (2021 - 2026).

The outbreak of COVID-19 and the subsequent lockdowns have affected bike rentals in several countries. The impacts of the pandemic are visible in the decline in fewer bike rentals. Hence, the reduction in revenue due to the pandemic-induced disruptions hindered the growth of the market in 2020. However, it is expected to improve the market post-pandemic as most people are focussing to avoid public transportation and maintain social distance from others.

Due to the growing need to reduce emissions across the world, most countries are replacing existing fuel-based transportation with electric mobility. India, still in the very early stages of adopting EV's can be a huge market for E-bike rental companies. As most people are now aware of traffic congestion and pollution, India is looking towards a cleaner mode of transportation to tackle the situation.

The government initiatives like reduction of taxes on EV's and establishment of charging infrastructure attracting the investments in electric mobility and services based on it.

India's emerging E-Bikes rental startups like VOGO and Yulu are now heavily investing in R&D and charging infrastructure in order to cater bike rental services to more number of Indian Cities. They provide services estimated to be in over 150 Indian cities and towns and projected to reach 450 cities and towns by the end of 2020..

E-Bikes are environmentally friendly, running majorly on Li-ion chargeable battery. It can offer a maximum range of 99.4 miles (160 km) in one single charge. With options of battery typing 8, 12, or 18-amp hour batteries, it also provides a choice for the customer as per their utility.

The COVID-19 pandemic forced the people to have their own e-bikes for commuting instead of using crowded public transport. The sales of e-bikes boomed in 2020, with manufacturers struggling to keep up with the demand. Bike rental company Bounce added about 4,000 more electric two-wheelers in 2021 as it looks to transition to a 100% electric vehicle (EV) fleet by the third quarter of next year.

Traffic congestion in Indian cities is increasing day by day. With the increasing number of vehicles, the existing infrastructure is unable to meet needs in every town and lanes. Traffic congestion inhibits the productivity of people with a lot of time lost waiting. As a result government, today is promoting the sales for E-Bikes as they occupy lesser space resulting in more minor traffic jams and also reduced carbon footprint on the environment.

Companies like Bajaj Auto, known for bringing successful scooter models like Chetak, are partnering with E-bike startups. With a growing demand for micro-mobility and share-mobility spaces, many of the established 2- wheeler automakers such as Bajaj are working along with fresh start up's such as 'Yulu,' offering its operational learning with decades-long of experience in the Indian 2-wheelers market.

The Government of India is also encouraging to use E-Bikes. By the end of 2035, the government wants to convert all fuel-run vehicles into electric vehicles. E-Bikes can ride as fast as 25 kmph (15.5 mph), and cover 60 km (37.2 miles) in one charging cycle. Many startups are working on battery manufacturing and also expanding spaces for parking and charging stations.

Although in India, setting up parking stations and charging stations for rental purposes remains a challenge given the densely populated cities and town. However, adequate freshly charged batteries can be swapped relatively quickly with minimal money invested into other barriers such as transportation and extraction costs, which remain fluctuating and are no longer economical for a country like India.

The Indian government has also granted an exemption of registration fees for battery-operated/electric vehicles and even an exemption to permits to E-Vehicles running on ethanol and methanol fuels. It has also allowed obtaining driving licenses to drive e-scooters for the age group of 16-18 years. All these indicate a bright future of the E-Bikes vehicles in the country.

The Indian E-Bike Rental Market is hugely fragmented with various startups and regional players such as Vogo, Hulu, Bounce, Ather Energy, Giant Bicycles. Although to have the edge over its competitors, the major car manufacturers are making joint ventures, partnerships to launch newer products. For instance,

Bangalore-based electric bike-sharing platform 'Yulu' has partnered with Uber and Bajaj Auto. Since its launch, it has raised about USD 16.5 million and operates across Bangalore, New Delhi, and Mumbai. Currently, with over 3,000 electric bikes on its platform, the company plans to bring 100,000 electric two-wheelers to its fleet by the end of 2020.

Bike taxi platform Rapido has joined hands with Zypp Electric to provide EV bike taxi ride service -Rapido EV- to its customers.

Bike rental startup VOGO plans to introduce an electric vehicle (EV) fleet to provide sustainable mobility solutions to commuters.

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