The landscape of urban transportation is rapidly evolving, with micromobility options gaining significant traction in cities across the United States. According to a recent report by the National Association of City Transportation Officials, shared bicycle and scooter rides in U.S. cities saw a remarkable 16% increase in 2023, totaling 133 million trips. This surge in popularity highlights the growing importance of micromobility in urban transportation ecosystems, even as challenges related to affordability and city resources persist.
The rise in micromobility usage is particularly noteworthy in the context of shared bike ridership, which set a new record of 68 million rides in 2023. Of these, dock-based bikes accounted for the majority, with 61 million rides. This preference for dock-based systems suggests that users value the reliability and predictability of fixed stations. Meanwhile, dockless scooters contributed significantly to the overall micromobility landscape, accounting for 65 million rides. Although this figure is impressive, it falls short of the all-time high of 86 million rides recorded in 2019, indicating potential areas for growth and improvement in the scooter-sharing sector.
One of the most striking trends highlighted in the NACTO report is the growing popularity of electric bikes (e-bikes) in shared systems. In cities where both pedal and e-bikes are available, e-bikes have emerged as the clear favorite among riders. For instance, in Los Angeles, e-bikes were used eight times more frequently than traditional pedal bikes in September 2023. Similarly, in New York City, e-bikes saw four times as many rides as their non-electric counterparts. This shift towards e-bikes is reshaping the micromobility landscape, with e-bikes accounting for 46% of trips despite representing only one-third of the total available station-based bikes in 2023.
Despite the overall growth in micromobility usage, the industry faces significant challenges, particularly in terms of affordability. The NACTO report highlights a concerning trend of sharply rising costs for users of bike-share systems in major U.S. cities. From 2019 to 2023, the cost of annual passes increased by 32% in Chicago, 30% in Boston, and 21% in New York City. In New York, riders now face annual pass fees exceeding $200. Additionally, many cities impose sales tax on each bike-share trip, unlike public transportation fares. These rising costs are making micromobility options increasingly less affordable compared to other public transportation alternatives, especially for users opting for pay-as-you-go trips.
The success and growth of micromobility services are also constrained by limited financial and operational resources in many cities. Municipal governments often struggle to provide comprehensive support for these services, leading to challenges in expansion and maintenance. This situation is further complicated by upheavals among private-sector providers, who play a crucial role in the micromobility ecosystem. Companies like Lyft and Bird, which operate bike and scooter-sharing services in various cities, face their own set of challenges in maintaining profitability and service quality.
Looking ahead, the NACTO report suggests several strategies for cities to sustain and enhance the success of shared micromobility. These recommendations include considering public ownership and subsidies to improve affordability, eliminating sales tax on shared bike and scooter rides, and expanding protected bike lane networks. Additionally, placing micromobility devices and stations closer to homes and popular destinations could increase accessibility and usage. These measures aim to address the current challenges while capitalizing on the growing popularity of micromobility options.
As cities approach a combined total of 1 billion micromobility trips in the coming year, the importance of these services in urban transportation cannot be overstated. The continued growth and evolution of micromobility options present both opportunities and challenges for cities, service providers, and users alike. Balancing affordability, accessibility, and sustainability will be crucial in shaping the future of urban mobility and ensuring that micromobility continues to play a vital role in creating more livable, efficient, and environmentally friendly cities.
Lyft Inc. (NASDAQ: LYFT), a major player in the micromobility space, is currently trading at $11.23, up 2.37% on the NASDAQ stock exchange.
The stock has been in a sideways trend over the past month, showing some stability after a period of volatility. Technical analysis indicates LYFT is trading above its 50-day moving average but below its 200-day moving average, suggesting a neutral to slightly bullish short-term trend. The MACD is slightly above the signal line, indicating potential positive momentum. Support levels are observed around $10, with resistance near $12.50. The stock is currently trading in the middle of its Bollinger Bands, suggesting a lack of strong directional movement. Fibonacci retracement levels show potential support at $10.50 and resistance at $12. This sideways trend reflects the company's ongoing efforts to achieve profitability in its ride-sharing and micromobility operations, with investors cautiously optimistic about its future prospects.
