Millennials have been a pivotal force in the resurgence in America’s urban areas. According to a Journal of Regional Science study, they are 21% more likely to buy homes near city centers than Gen Xers. This is positive news for urban markets; however, as congestion in cities rises due to growing populations, so does the strain on existing transportation systems.
To solve this issue there has been an increase in the number of micromobility start-ups — including ride-hailing platforms like Uber and Lyft, bike-share programs like New York City’s Citi Bike, and electric-scooter rental services like Bird, Lime, and others.
Micromobility refers to short-distance transport, usually less than 5 miles.
Today, there are more than 85,000 e-scooters available for rent, and micromobility services are in over 100 cities in the US. As a whole, this sector is expected to be worth up to $300B by 2030.
The prime driver is the millennial population. According to our internal studies nearly 40% of millennials have tried micromobility services, and they are expected to continue to that trend in the foreseeable future.
Investors have taken note. They have invested more than $5 billion in micromobility start-ups over the past four years. There are certainly some challenges that come along with trend, including lack of regulation, citywide bans, and theft. This phenomenon has the potential to massively disrupt the marketplace.