The United States is witnessing an unprecedented boom in micromobility, with shared bike and scooter trips reaching record-breaking numbers in 2023. This surge represents a 20% increase compared to the previous year, surpassing even pre-pandemic levels. The growth is particularly notable in Canada, where cities reported a staggering 40% increase, while the U.S. saw a solid 16% rise. These figures, compiled by the National Association of City Transportation Officials, paint a picture of a thriving industry that's rapidly changing the urban transportation landscape.
Despite this impressive growth, the micromobility ecosystem in the U.S. remains fragile. Even popular programs have faced sudden shutdowns, leaving riders in the lurch. The industry's vulnerability is further highlighted by the potential for fare increases, with some of the largest programs on the continent seeing annual pass costs rise by 20 to 30%. This precarious situation has led NACTO to declare that shared micromobility is at a critical juncture, emphasizing the urgent need for cities to develop sustainable operational models to ensure the long-term viability of this increasingly essential mode of transportation.
The reasons behind the industry's vulnerability are multifaceted. Mass layoffs across multiple private operators, such as scooter giant Bird, have led to some U.S. cities losing access to shared options overnight. Even publicly financed systems in cities like Cincinnati, Houston, and Minneapolis have proven susceptible when major sponsors unexpectedly withdrew their support. The growing popularity of e-bikes, while a positive trend for ridership, presents its own set of challenges. In Los Angeles, for instance, pedal-assist vehicles were eight times more popular than traditional bikes in 2023, despite the additional per-minute surcharges that often make them more expensive than typical bus or train fares.
To address affordability concerns, many companies have introduced discounts for low-income riders. However, NACTO argues that this approach falls short of addressing the broader cost-of-living crisis affecting working and middle-class residents in cities across North America. The organization suggests that cities should explore ways to make shared micromobility systems more affordable for all riders, not just those at the lowest income levels.
NACTO's report emphasizes the need for cities to begin treating shared micromobility as a public asset and subsidizing it accordingly. This could take various forms, including outright public ownership of micromobility programs and direct taxpayer subsidies to reduce fare costs across the board. Other potential measures include eliminating sales tax on rides, similar to the breaks other transit users enjoy, or investing in protected bike lane infrastructure to encourage higher ridership and potentially allow for lower fares over time.
The explosive growth of e-bikes within micromobility fleets presents both opportunities and challenges. While their popularity indicates a strong demand for pedal-assist options, the higher costs associated with servicing and maintaining these vehicles put additional pressure on providers' bottom lines. This trend underscores the need for innovative funding models that can support the ongoing expansion and maintenance of e-bike fleets while keeping fares affordable for users.
As cities grapple with these challenges, they must also consider the broader implications of micromobility on urban planning and transportation policy. The NACTO report urges cities to reflect on whether shared micromobility should be viewed primarily as public transportation or as a tool for downtown economic development. For those cities that wish to provide shared micromobility as a public service, a thorough examination of finances, subsidies, and affordability is crucial to ensure its continued accessibility as a transportation mode.
As of the latest market close, Bird Global Inc. (NYSE: BRDS) is trading at $1.25, down 3.1% on the New York Stock Exchange.
The stock has been in a downtrend over the past month, with the price currently below both its 50-day and 200-day moving averages, indicating bearish sentiment. The MACD is below the signal line, suggesting negative momentum. Support levels are observed around $1.15, with resistance near $1.40. The stock is trading near the lower Bollinger Band, potentially indicating oversold conditions. Fibonacci retracement levels show potential support at $1.20 and resistance at $1.35. This downtrend reflects ongoing challenges in the micromobility sector, including funding issues and operational uncertainties, despite the overall growth in ridership across North America.
