Battery Swap Technology
The introduction of swappable battery vehicles allows the rider to replace discharged battery with a charged one at dedicated swapping center. This in turn has increased the fleet uptime substantially while also reducing the operation costs. The use of swappable batteries will also move the micro mobility market to profitability. Also, with the use of swappable batteries, the scooter unit economies can be improved as it not only cuts a large part of the charging costs, it also improves the vehicle availability.
Decrease in Demand for Conventional Vehicles
With a small number of cars on the road, there will be significantly less demand for parking spaces in urban areas. This is especially important now considering young people are entering their adult lives in a time where housing prices are at an all-time high. The existing land supply crunch has led to increased real estate prices, wherein developers are hoarding land and charging high prices for property purchases and rentals. One of the most common uses of city land is for parking. Micro mobility will ease this demand and therefore open up the land supply. In a competitive market, this is expected to drive land prices down, followed by a decrease in housing prices.
Need for Green Transportation
The millennial generation is increasingly becoming conscious of the impacts that their actions have on the environment. Young people are prepared to make a commitment to sustainability and are likely to make sustainable choices generally. Micro mobility provides them with the opportunity to do their bit in reducing the carbon footprint aspect of the e-scooter and e-bike business model, which can act as a driving force for its success, especially among the young generation.
