As a green and economical new mode of travel, shared travel is gradually becoming an important part of the transportation systems of cities around the world. Under the market environment and government policies of different regions, the specific tools of shared travel have also shown a diversified trend. For example, Europe prefers electric bicycles , the United States prefers electric scooters, while China mainly relies on traditional bicycles, and in India, light electric vehicles have become the mainstream choice for shared travel.
According to Stellarmr ‘s forecast, India’s bike sharing market will grow by 5% from 2024 to 2030 , reaching US$ 45.6 million. The Indian bike sharing market has broad development prospects. In addition, according to statistics, about 35% of vehicle travel distances in India are less than 5 kilometers, with a wide range of use scenarios. Coupled with the flexibility of electric two-wheelers in short- and medium-distance travel, it has huge potential in the Indian sharing market.
Ola expands e-bike sharing service
Ola Mobility, India’s largest electric two-wheeler manufacturer, announced after launching a shared electric vehicle pilot in Bengaluru that it will expand the scope of electric two-wheeler sharing services in India, and plans to expand its electric two-wheeler sharing services in three cities: Delhi, Hyderabad and Bengaluru within two months. With the deployment of 10,000 electric two-wheelers, coupled with the original shared vehicles, Ola Mobility has become a well-deserved sharing in the Indian market.
In terms of pricing, Ola ‘s shared e-bike service starts at Rs 25 for 5 km , Rs 50 for 10 km and Rs 75 for 15 km . According to Ola , the shared fleet has completed more than 1.75 million rides so far. In addition, Ola has set up 200 charging stations in Bengaluru to serve its e-bike fleet.
Ola Mobility CEO Hemant Bakshi has highlighted electrification as a key element in improving affordability in the mobility industry. Ola is currently targeting widespread deployment in Bengaluru, Delhi and Hyderabad.
Indian government’s support policies for electric vehicles
There are multiple reasons why light electric vehicles have become a representative tool for green travel in India. According to surveys, the Indian electric bicycle market shows a strong preference for throttle-assisted vehicles.
Compared with electric bicycles popular in Europe and the United States, light electric vehicles are obviously cheaper. In the absence of bicycle infrastructure, light electric vehicles are more maneuverable and more suitable for walking on Indian streets. They also have lower maintenance costs and faster repairs. convenient. At the same time, in India, riding motorcycles has become a common way of traveling. The power of this cultural habit has also made motorcycles more popular in India.
In addition, the Indian government’s supportive policies have also allowed the production and sales of electric two-wheelers to further develop in the Indian market.
To boost the production and adoption of electric two-wheelers, the Indian government has launched three major schemes: the FAME India Phase II scheme, the Production Linkage Incentive ( PLI ) scheme for the automotive and component industry, and the PLI for Advanced Chemistry Cells ( ACC ) In addition, the government has also increased demand incentives for electric two-wheelers, reduced the GST rate on electric vehicles and their charging facilities, and taken steps to exempt electric vehicles from road tax and licensing requirements to reduce the initial cost of electric vehicles, these These measures will help the popularity of electric two-wheelers in India.
The Indian government has promoted the popularization of electric vehicles and introduced a series of policies and subsidies to encourage the development of electric vehicles. This has provided a good policy environment for companies such as Ola , making investing in electric bicycles an attractive option.
Market competition intensifies
Ola Electric has a 35% market share in India and is known as the “Indian version of Didi Chuxing”. Since its establishment in 2010 , it has conducted a total of 25 rounds of financing, with a total financing amount of US$ 3.8 billion. However, Ola Electric’s financial situation is still at a loss, as of 2023 In March , Ola Electric suffered an operating loss of US$ 136 million on revenue of US$ 335 million.
As competition in the shared travel market becomes increasingly fierce, Ola needs to continuously explore new growth points and differentiated services to maintain its competitive advantage. Expanding the shared electric bicycle business can open up new market space for Ola and attract more users. Ola has demonstrated its commitment to building a sustainable urban mobility ecosystem by promoting the electrification of e-bikes and building charging infrastructure. At the same time, Ola is also exploring the use of electric bicycles for services such as parcel and food delivery to explore new growth opportunities.
The development of new business models will also promote the popularity of electric two-wheeled vehicles in various fields, and the Indian electric two-wheeled vehicle market will become another important growth area in the global market in the future.
Post time: Feb-23-2024
