With the rest of the world continues to see the micro mobility sector enjoy growing success, could we see a similar success in the GCC?
Micro mobility, which involves light-weighted means of transportation like electric scooters and bikes for short trips, usually in urban areas, has continued to grow internationally. Countries like China, the United States and many EU nations are finding great success with this novel sector, which builds on many of the concepts of the sharing economy that innovators like Uber brought into the mainstream.
Lime and Bird, US rivals in the sector, reached unicorn status in a handful of years each since their founding. One of the reasons for their sudden success is that they solved the long-standing last-mile issue, capitalizing on a neglected market gap.
The GCC goes mobile
Today in the GCC, some are attempting to solve this last-mile problem as well. Earlier this year, Careem announced that it had acquired Abu Dhabi bikeshare startup Cyacle, which would add a micromobility offering to their services. Launched in December 2014, Cyacle is a fully-automated docked bikeshare service currently operating in Abu Dhabi. Stations run 24-hours a day via an app, a touch screen kiosk and docking system that releases bikes using a ride code or a member key.
At the time, Careem had also announced that it was partnering with Dubai’s Roads and Transport Authority (RTA) to install 350 bike docking stations across the Emirates, where citizens would have access to 3,500 bicycles to bike share.
Besides Careem and its affiliates, many startups have ventured into the field as well. European e-mobility startup Circ launched its Middle Eastern HQ in the UAE this summer, bringing the region a new player in the micro mobility field. It deployed its bikes in Abu Dhabi, recently partnering with real estate management services provider Provis to make its e-scooters available across their communities.
Another firm, Dubai-based Arnab Mobility, is also providing a similar service.
“Global cities are currently trying to find solutions to the global warming problems mainly caused by fossil fuel vehicles,” Dr. Dheeraj Bhardwaj, Group CEO of Arnab Mobility, tells Gulf News. He ponders an age-old question: “Also, city inhabitants and visitors struggle with first/last mile transportation, congestion and expenses. How efficient is it for a one-ton hulk of metal to take one person two to three miles? Conventional transportation systems are currently insufficient with people dealing daily with traffic, a lack of parking spaces, as well as long walks from bus stops and metro stations.”
Yet, while these solutions offer a service on par with international counterparts, it is important to remember the financial, cultural, and climate situation of the region.
Firstly, it is important to remember that the GCC region is known for its oil-derived wealth, with many nationals owning multiple vehicles and often employing personal drivers to help family members commute. Secondly, travel distances for major outings are already quite short.
“With urbanization on the rise, the majority of trips people take fall within the category of micro mobility and thus are prime candidates for bike and scooter usage. In the US, for instance, roughly 60% of all trips are 5 miles or less,” CBinsights explains.
One of the reasons micro mobility solutions are so attractive abroad is because of their perceived value for the service provided. Instead of paying a whopping fee for a taxi get you across 4 city blocks in New York, a US citizen would opt to rent a Lime scooter for a fraction of the cost. In the GCC, with its small-sized nations, large roads and affordable taxi services, this is not yet a problem. The countries in the region, save for Saudi Arabia, are sometimes comparable to entire Western cities in size. Bahrain, for example, has an area of 765.3 km², which is half the size of London (1,572 km²).
Therefore, from a financial and spatial perspective, micro mobility services might struggle.
Then arises the issue of culture perceptions. While women have been driving for more than a year now in Saudi Arabia for example, breaking gender bias and perception is still an ongoing challenge. The country is certainly moving towards progress, but micro mobility firms will have to consider this nonetheless. Also, consider that environmental awareness and consideration only just recently began to receive mass attention in the region in the past few years. Getting people to opt for bikes over a more convenient car ride will still prove a struggle.
Finally, and perhaps the most glaring of the issues plaguing micro mobility companies in the region, is the climate and weather. The GCC is infamous for its scorching desert sun and sweltering heat. While public transportation like the Dubai metro or public buses offer some reprieve from the heat with their AC units, an e-scooter or bike doesn’t. When it’s 50 degrees Celsius outside and you need to just get home after a long day at work, a taxi or Uber, even for the higher fee, will prove the go-to choice. That remains the sector’s greatest obstacle. How it addresses it is still in question.