Micro mobility allows you to move comfortably across distances that are just a little too long to walk.

So far, the mobility ecology focused on the use of automobiles. People began to share their automobiles, and automobile based service such as taxis and drivers were provided through platforms for the convenience of the users. But recently with the variety of mobility service becoming diverse and finer, services that cover the scope which the existing transportation means could not take care of are now provided. A representative service of this kind would be micro mobility.

Last mile will become much more convenient with micro mobility.

There’s an increase in the frequency of witnessing micro mobility on the streets.

Micro mobility refers to all transportation methods that transfer you through a short distance, normally 1~3km, with the purpose of eliminating the lack of ‘last mile’ service; that distance from just after using the bus or the subway to your final destination. Nowadays users who cannot get a hold of a taxi as the distance is too short can use micro mobility service to comfortably get through this particular distance that is just a little too long to walk. Representative micro mobility means include electric kickboard and electronic bicycle.

Micro mobility is getting much attention as the new growing force as it complements the inconveniences users had with the existing last mile services. According to Korea Transportation Safety Authority, Korea’s micro mobility transportation means is expected to see a rapid growth from around 60,000 in 2016 and 75,000 in 2017 to 200,000~300,000 in 2022.

Due to an increase in transportation means, the micro mobility market is expected to grow quickly into the size of approximately 600 billion KRW in 2022 as it will continue its high average yearly growth of over 20%. The size of the global micro mobility market is also expected to grow steeply from 400 billion KRW in 2015 to 26 trillion KRW in 2030. The whole world is in on this competition to preoccupy this market.

Fierce competition among businesses to acquire the last mile

You can use the bicycle sharing service ‘Jump Bikes’ via Uber app.

Micro mobility businesses that are competing in the market can be categorized into two large groups. The first is the ‘expansive type’. This is about forming a business model so that it can be connected to the existing mobility platforms after recognizing that the early mobility ecology grew based on automobiles. Uber is a model case of this category. Uber acquired San Francisco’s bicycle sharing service ‘Jump Bikes’ for 200 million dollars in April 2018. At the moment it can be used via Uber app in San Francisco.

According to the data released by Jump Bikes, which recently celebrated its 1st anniversary since launching the service, the bikes were used 625,000 times during its first year. This led to a 10% decrease in Uber’s car callings but increased the usage of the app itself, succeeding in expanding its services. In Korea, the automobile sharing service SoCar invested in Korea’s first electronic bicycle sharing service business ‘elecle’ and is providing services from April 2019. At the moment it is only available in Mapo gu and Sinchon in Seoul, but it is expected to expand its service zone in the future.

The second is the ‘changeover type’. Existing automobile makers entered the micro mobility market and are continuing competition. Ford, namely, has partnered with the bicycle sharing service start up ‘Motivate’ in 2017 and are servicing a bicycle sharing platform ‘GoBike’ in Silicon Valley. In 2018, they acquired the electric kickboard sharing service provider ‘Spin’ for approximately 100 million dollars.

Hyundai Motors’ ZET reduced the risk of operation by supporting management system and safety related technology to the operation company.

In Korea, Hyundai Motors started the mobility service with an open last mile platform ‘ZET’. ZET is an electric kickboard & electronic bicycle sharing service; Hyundai Motors has established an open service platform which is used to allow multiple service operators to provide services to the customers. What’s noteworthy is that it reduces the cost of the operator and improves efficiency by providing a management system that makes use of user app and fast IoT module while also providing helmets, insurance service, speed limit technology, etc., for safe service operation.

The third is the ‘New Type’. Start ups that are specialized in micro mobility are launching new services. There’s ‘KICKGOING’, an electric kickboard sharing service launched by the start up ‘olulo’ in September 2018 for the first time in Korea. Since March 2019, its subscribers have exceeded 50,000; which makes it the biggest user pool among all Korean electric kickboard sharing services. Currently it is operated with about 800 units in selective regions including Gangnam gu, Mapo gu, Songpa gu, Yeungdeungpo gu in Seoul, Pangyo, Seongnam si, Gyeeonggi do, and Centum City, Haewoondae gu, Busan, etc.

There’s also competition from Maas Asia, which had launched Korea’s first bicycle sharing service, S bike, which has now launched an electronic bicycle sharing integrated platform ‘gogoSsing’. gogoSsing is serviced in Gangnam gu, Seoul, and Pangyo, Gyeonggi do; it’s differentiated from others for its charging and exchanging of batteries at the GS25 convenient stores.

Reorganize systems required for micro mobility service provision.

We need implementations of related policies and systems to popularize micro mobility.

But the micro mobility usage environment is still a hodgepodge. Bicycles and electronic bicycles are only allowed on bike lanes whereas electric kickboards, electric wheels, and electric scooters are categorized as motor bicycles like motorcycles and can only be used on roads. With related discussion continuing, the Presidential Committee on the 4th industrial revolution concluded that electric kickboards can also be ridden on bike lanes at the 5th regulation innovation Hackathon in March 2019.

Such change is evaluated to be a reorganization of systems that reflects the international usage of micro mobility. System reorganization is needed to allow various businesses to provide innovative micro mobility services under foreseeable regulations. There is much attention how fast such related regulations will be improved within an encompassing boundary.

Written by. Joon hong Min (Connecting Lab)