Increasing Use of Technology: Rental two wheeler players in India are continuously investing on new technologies and data science to transform urban mobility solution. Companies such as Bounce have started providing keyless tech which allows users to access bike with just an OTP. This helps their bikes to work on a dockless model, which means customer can pick up and drop off the vehicle anywhere, anytime. Other players are also focusing on security mechanisms and have introduced geo fencing, GPS tagging, etc. to monitor the fleet remotely. Apart from this, IoT ensures consistency in various parameters of the bike such as re-fuelling, battery swaps and timely maintenance.
Challenges in India Rental Two Wheeler Market: Two wheeler rental spaces in India were highly unorganized with presence of around 15,000 players owing to ambiguity on the government guidelines. Recently, the union ministry of road transport has asked all states to implement the Rent a Motorcycle Scheme, 1997. However, a number of checklists need to be ticked under the scheme to obtain a license. Rental 2W scooters currently fall under the 28% GST slab much higher than AC buses, cab aggregators, and other mobility service providers. Lack of proper infrastructure like vehicle pick-up and drop-off points, charging stations for EV vehicles, parking spaces, etc. is also a bottleneck to rental solutions. In addition, theft and vandalism of two wheelers is a major challenge faced by the rental providers in India.
Impact of COVID-19 on India Rental 2W Market: COVID-19 has adversely impacted the growth of rental two wheeler market in India. Urban mobility startups are downsizing their fleet by selling off vehicles to the second-hand market as many of them are forced to cut down on both capital and operational costs. At least half the demand for rental commute solutions has been wiped out from the market. Some of the smaller players were even at the verge of a shutdown incurring heavy losses due to the pandemic. On a positive note, companies are expecting a quick turnaround in the sector as the post pandemic will force a lot of people to adapt to private vehicle transport and the lightest-on-pocket way for them will be to use rented or shared vehicles. Many players have started offering long term rentals along with entering into a tie-up with a B2B company to sustain their operations. Sanitization services and doorstep delivery of two wheelers have been started by the major players during the pandemic.
Analysts at Ken Research in their latest publication “India Rental Two Wheeler Market Outlook to 2025 – Driven by Introduction of Electric Vehicles and Adoption of Dockless System in Vehicles” observed that the rental two market has a great potential to grow supported by the booming tourism, rapid digitalization and high inter-state migration. The advanced technology and additional features implemented by players such as dockless model, flexible ownership model, keyless tech, etc. is expected to boost growth of rental two wheeler markets in the years to come. Introduction of EV fleets in the micro mobility segment to cater to first and last mile travel solutions is also expected to drive the industry in the future. The India Rental Two Wheeler Market is expected to grow at a CAGR of 11.6% on the basis of GTV over the forecast period 2020-2025.
Key Segments Covered:-
By Market Structure (in Terms of Fleets and GTV)
Organized Market
Unorganized Market
By Type of Organized Market Fleets
Owned Fleets
Leased Fleets
By Major Cities (in terms of Fleets)
Bangalore
Goa
Mumbai
Pune
Jaipur
Delhi NCR
Hyderabad
By Type of Two Wheelers (in terms of Fleets)
Scooters
Motorcycles
E-Bikes
By Type of Bikes
Commuter
Sports
High End Bike
By Purpose (in terms of B2C Bookings)
Commuting
Leisure
By Booking Package (in terms of B2C Bookings)
Hourly
Daily
Weekly
Monthly
By Booking Channel (in terms of B2C Bookings)
Online App/Website
Physical Store
Booking via Call
By Usage (in terms of B2C Bookings)
Intracity Bookings
Intercity Bookings
Companies Covered:-
Bounce
VOGO Rentals
Drivezy
Yulu Bikes
ONN Bikes
RenTrip
Royal Brothers
ZopRent
Boongg
ZipHop
Wheelify
eBikeGo
RidoBiko
Bykemania
Mobycy
GoBikes
Faebikes
Key Target Audience:-
Rental Two Wheeler Players
Two Wheeler OEMs
Consultancy Companies
Industry Associations
Regulatory Bodies
Time Period Captured in the Report:-
Historical Period – 2017-2020
Forecast Period – 2020-2025
For More Information on the research report, refer to below link:
India Rental Two Wheeler Market
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
