Electric Scooters - Market Drivers
The drivers of growth in the US electric scooter market include the emergence of ride sharing services, government incentives and federal tax credits, its low maintenance, environmental benefits, and its popularity among celebrities.
The Emergence of Ride Sharing Services
- A major growth driver in the US electric scooter market is the rise of electric scooter sharing fleet. More Americans are actively seeking alternatives to car ownership. Experts call this the micromobility revolution.
- Electric scooter sharing services have been in the US market for over five years. However, the market only emerged within the past two years.
- These services are hyper-localized. They also combat last mile commute problems.
- In addition, they are reportedly easier to operate, compact, and have shorter trips than other vehicles. This is in turn enhancing the growth of the US electric scooter market.
- In 2018, Lyft and Uber started their scooter sharing services. Lime and Bird are some established electric scooter sharing services in the US.
Government incentives and federal tax credits
- The US government has taken initiatives to promote the adoption of electric vehicles safely.
- One of such initiatives is the development of public charging infrastructure for electric scooters.
- The US government offers tax credits for electric vehicles bought in the US, depending on the size and battery capacity. Since electric scooters fall under this category, tax credits might be applicable.
- Electric scooters are considered low maintenance. Scooters are also dockless. This means they can be left anywhere.
- The battery pack that electric scooters use is smaller, when compared to other modes of transportation.
- The cost of maintaining an electric scooter is less expensive than a normal car or bike.
- Swagtron, a leading electric scooter developer in the US, mentions that electric scooters have revolutionary features like airless honeycomb-style rear tires, which help avoid the burden of flat tires.
- One of the main appeals of electric scooters is the environmental benefits it has.
- Scooters have average greenhouse gas emissions of 200 grams of CO2 per mile, compared to actual vehicles which have more than twice the gas emissions per mile.
- As explained by Lime, electricity is far more environmentally friendly than gas. Producing electricity for millions of scooters will emit less than 2% of the CO2 produced by millions of vehicles.
- US millennials, the main users of electric scooters are known as the most concerned generation in terms of environmental sustainability. The fact that using scooters alleviates this concern is another reason for its popularity among young people.
Popularity Among Celebrities
- Millennials and Gen Zers in the US trust social media influencers and celebrities more than any other generation. As a result, they mirror what these celebrities are doing or buy what they see these influencers using.
- One study revealed that 52% of US Gen Zers and 50% of millennials trust the influencers they follow on Instagram for good advice about brands.
- Celebrities and social media influencers like Justin Bieber, Kendall Jenner, and Wiz Khalifa have posted videos featuring electric scooters on Instagram.
- The popularity of this mode of transportation among celebrities are fueling its growth among youths in the US.