HDInsights Edition 7 2022

Micromobility may change urban transport forever Getting from point A to B over short distances with micro and light vehicles has become one of the keys to sustainable urban transport. However, micromobility sharing platforms have had their fair share of issues: from safety concerns and insurance challenges to public nuisance caused by illegally parked bikes and scooters blocking sidewalks. In this article the HDI Global team explore evolving insurance considerations for micromobility.

First Published HDI Global Infocentre on 23 June 2022

Most trips in cars are short (and often made solo) Getting around on electric scooters or bikes over short distances can be an important pillar of sustainable mobility. These modes of transport include both electric and non-motorised vehicles. As a result, this trend enhances the overall quality of urban life by making short-distance transportation more comfortable, available, and efficient. According to McKinsey, "Trips of less than 8 km (5 miles) account for as much as 50 to 60 per cent of today's total passenger miles travelled in China, the European Union, and the United States." With the bulk of urban trips being so short and a lot of them being made by just one person, micromobility offers a great alternative to cars. In the United States, for example, the average adult weighs 82 kg and the average vehicle weighs 23 times as much. According to the EPAs Automotive Trends Report, the average vehicle weight "has increased slowly over the last several years and is currently at the highest point on record, at 4,156 pounds (Note: approx. 1.86 metric tons)." According to data compiled by Valence Strategic, which was published in Wired Magazine, "One kilowatt hour of energy can only get a gasoline powered car to travel 0.8 miles (1.3 km)." Electric vehicles are far more efficient than gasoline powered cars, being able to travel 6.6 km with one kwh of energy. Using an electric scooter, however, one could travel more than 130 km. With most of a car’s energy being used to move the vehicle itself, micromobility has the potential to provide transportation at a much lower economic and environmental cost. For many cities struggling with the consequences of rapid urbanisation, micromobility can be part of a solution to crippling congestion and the resulting noise and smog.

Small electric scooters and bikes aren't meant to take the place of cars or public transportation entirely. However, they have the potential to serve as a first mile/last-mile alternative to public transportation, as well as a means of connecting neighbourhoods. Small, lightweight electric vehicles are booming In addition to private e-bike sales, micromobility sharing platforms have burst onto the scene in recent years, and various companies have reached unicorn status by attracting huge investment. ‘Last year, shared electric micromobility giant Lime raised $523 million in funding. At the beginning of this year, the European micromobility platform Bolt raised €628 million, lifting the company's valuation to a total of €7.4 billion.

HDInsight Edition 7 - page 19