India Two-Wheeler Sharing Market to Come Out Stronger in the Next 10 Years

With the surging number of vehicles such as buses, motorcycles/scooters, auto-rickshaws, and private cars on roads, road congestion is increasing rapidly in India. Moreover, due to the increasing number of vehicles, many urban cities such as Mumbai, Bengaluru, Chennai, and Delhi NCR are facing heavy traffic. This massively increases the commuting time of travelers, which, in turn, leads to huge financial losses for businesses. As a result, people are increasingly preferring two-wheeler sharing services for commuting.

These services are not only highly convenient for those wanting to travel short distances, but also reduce road congestion and improve the flow of traffic. Moreover, the surge in ridership over the last two years proves that these services are being increasingly used by daily travelers for reducing their travel time. In addition to providing greater convenience, these services eliminate the requirement for personal vehicles, which usually increase a person’s monthly expenditure, as additional expenses parking costs, maintenance costs, and insurance charges, are required for owning vehicles. 

Furthermore, scooter/motorcycle sharing services are found to be nearly 25–40% cheaper than conventional cab services. Due to these factors, the popularity of two-wheeler sharing services is growing rapidly in India, which is, in turn, fueling the expansion of the Indian two-wheeler sharing market. According to the estimates of the market research company, P&S Intelligence, the market revenue 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% from 2020 to 2025. 

One of the major trends currently being witnessed in the Indian two-wheeler sharing market is the surging number of partnerships being launched among various two-wheeler sharing service providing companies. These partnerships are helping these companies gain an edge over their rivals and strengthen their industry position. For example, Uber Technologies Inc. (Uber), which is one of the major sharing service providing companies in India, launched a partnership with Yulu Bikes Pvt. Ltd. (Yulu) in May 2019 for providing bicycle sharing services to its customers.

Hence, it can be said with confidence that the demand for two-wheeler sharing services will shoot up in India in the coming years, primarily because of the greater convenience provided by them in comparison to private vehicles and the increasing road congestion in many cities.