The next big market opportunity for micromobility is commercial, not consumer – TechCrunch
Drones, sidewalk robots and self-driving vehicles are being touted as some of the next big movers in the last-mile delivery space, but what about the humble bicycle?
Global logistics and delivery companies like UPS, FedEx and Amazon have all started testing some form of electric bike or cargo bike for delivery. At the same time, startups are springing up to provide both fleets of micromobility vehicles for businesses and e-bike subscriptions for couriers and on-demand workers.
As last-mile delivery increases due to a booming e-commerce scene and pandemic habits now entrenched in consumer lifestyles, the largest market for micromobility will eventually be in space. commercial, not consumer-oriented.
“It doesn’t make sense to deliver an iPhone or a poke bowl to a Buick,” Nate Jaret, general partner of Maniv Mobility, an Israeli VC specializing in start-up mobility companies, told TechCrunch. “With the right tool, couriers can work faster and get paid more – and electric two- and three-wheelers are increasingly the right tool.”
The size of the last mile delivery market is expected to reach $123 billion by 2030, growing at a compound annual growth rate of 13.21%. If the industry continues as it is now, it’ll look like a lot more trucks, vans and cars taking up space in cities and polluting the air people breathe – that’s not exactly the case. message that we are trying to send these days.
“It doesn’t make sense to deliver an iPhone or a poke bowl in a Buick.” Nate Jaret, General Partner at Maniv Mobility
Micromobility solves the problem that electric cars and vans don’t, especially in urban centers: they’re small enough to navigate traffic jams and fast enough to make up to twice as many stops per hour as a delivery vehicle, according to John Pearson, CEO of DHL Express Europe. The total cost of ownership of e-bikes is also miniscule compared to vans.
Integrating e-bikes into the logistics system also solves the problem that autonomous delivery vehicles – whether sidewalk robots or something a little bigger, like Nuro’s delivery vehicles – don’t. The technology is available now, not 10 years from now.
These factors present a competitive advantage for companies wishing to reduce the costs of the last mile, which is typically the most inefficient and expensive part of the delivery chain.
“We believe that many commercial and delivery applications (and in particular last-mile urban delivery) will electrify faster than consumer use cases, due to total cost of ownership considerations – the amortization of the higher upfront cost of any EV is much easier when the wheels of the vehicle are running eight or more hours a day,” Jaret said.