UK eScooter Regs Create Micromobility Sector Opportunity, Uncertainty

The pandemic has given way to a growing preference for solitary, safer modes of transport such as walking, driving vehicles or bike-riding amongst individuals.

It has also fueled rapid growth in the European electric scooter (eScooter) market, as micromobility companies capitalize on new sustainability trends and offer an alternative to reducing motor traffic congestion in Europe’s densely populated cities.

However, the rising popularity of these shared micro-electric vehicles has been met with tough regulations in countries like the United Kingdom, where the use of privately owned eScooters remains illegal in the public domain.

“It’s currently illegal to use private eScooters in the U.K. on shared land, which means there’s no real regulation about the standards for the hardware, the software, the process, what training you might have to do to be able to use that service [or] how you recognize the use and unsafe use of it,” Georgia Yexley, U.K. and Ireland general manager at TIER, told PYMNTS in an interview.

This has made a challenging environment for micromobility firms that are currently operating under extremely “stringent” eScooter trial regulations.

“You have to have a driving license to use one of our eScooters. You must go through mandatory safety training. We limit the speed on your first ride. We’re doing extensive, in-person on the ground training. We provide helmets to people,” she said of some of the strict rules riders must adhere to.

But according to Yexley, the new regulations offer new opportunities for the micromobility sector, such as the possibility to use insights from the shared space to inform the right legislation for private eScooters, eventually bringing that regulation up to par and allowing greater access to privately owned micromobility vehicles.

“We’re seeing that people want to move in this way, [looking at] the uptake in the private eScooter space,” she noted. “People want to use light electric vehicles, they want to reduce their carbon footprint, but they also need low barriers to access to be able to do that [and] they also need to be safe.”

Data Provides Growth Insights

The increase in sustainability-conscious riders is helping to drive greater demand for green transport options, nudging firms more and more in the direction of figuring out where those climate-related challenges are to help cities reach their net-zero goals.

“You don’t achieve climate neutrality by carbon offsetting,” Yexley explained. “You achieve it by looking at every detail in your supply chain, making sure that you’re holding that to the lens of sustainability and that we’re seeing that happen more and more across the industry.”

The huge amounts of non-personalized data gathered by industry players can also play a key role in improving urban planning, for example, driving a shift away from car-centric designs to further limit carbon emissions, she added.

With insights on how people want to move around the city and where they’re going, the data can help firms make informed decisions on increasing parking spaces in certain areas or implementing a network design in a particular city that creates the convenience and reliability riders are looking for.

“We are capturing huge amounts of data on the benefits that these services are delivering as well, [and] on the opportunity for mode shift and helping people get from A to B effectively. This type of data is a huge aspect of how we’re running the trial,” Yexley said.

People, Place and Planet

Competition in the European eScooter space is fast-growing, as millions in venture capital (VC) funding are being injected into firms — clearly indicating that growth in the alternative transportation market is not slowing down anytime soon.

Learn more: Competition Grows in Crowded European E-Scooter Market as US Players Flood In

The Berlin-based shared micromobility firm, which launched in London in June 2021 and competes with European Union firms such as Voi and Dott in the space, raised nearly $200 million in a Series D round last October at a valuation of $2 billion.

The company has also embarked on a series of major acquisitions to expand its fleet, including that of German bike-sharing platform Nextbike and Vento Mobility, the Italian subsidiary of Germany’s Wind Mobility, marking its entry into the Italian market last December.

In March of this year, the German unicorn startup also made its first foray into the North American market with the acquisition of Spin from automaker Ford, increasing its total fleet to 300,000.

To further consolidate its leadership position in the U.K. micromobility domain, the firm recently launched its next-generation eScooter in London with new Internet of Things (IoT) and upgraded features and indicators that enhance rider visibility and make them easier to identify on the road.

Read also: Tier Mobility, Voi Technology Hold Initial Deal Talks

For Yexley, it all boils down to working for the many, putting safety and sustainability first while partnering and integrating with other public transport mass apps to ensure success in the sector.

“The three Ps have really steered the business to success, and it’s focusing on people, place and planet,” she said. “That’s our strategy at TIER and it’s not just for the U.K. and Ireland, [but for the business] as a whole.”

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