Electric Shared Mobility Market Post COVID

Christie Fernandez Sep 27, 2021

This COVID19 pandemic, brought to an abrupt halt, almost all modes of transport – air, rail & road globally. And since most of the transport is powered by polluting fossil fuels, there was a sudden & steep drop in pollutant’s being emitted into the atmosphere, resulting in improved air quality & clearer skies. People living in perennially polluted cities, suddenly realized that clean air can become a reality when we stop using polluting fossil fuels.

This realization has now accelerated the transition to electric drivetrains, and a rethink on sustainable mobility solutions for different markets. However, pandemic regulations on safe distancing have raised concerns about shared mobility. While the developed world, especially America & some countries in Europe enjoy a very high percentage of personal cars (over 800 per 1000 population), countries in the developing world have a low percentage of personal cars (less than 100 per 1000 population). This means that shared mobility is the mainstay for most of the population living in the developing world, and so it’s important to provide adequate shared mobility solutions that are safe, comfortable & affordable.

One country that has handled the pandemic very well is Singapore, and it even managed to keep its public transport buses, trains & taxis running, unlike most other cities/countries that stopped public transport. Singapore is a small island, comparable with urban cities globally in population (~ 6 million) & size (50 km east to west & 27 km north to south). However, Singapore has one of the best planned urban developments in the world, and almost 90% of its population makes use of public transport – taxis, buses & trains.

Singapore has an efficient MRT - around 200km of train tracks connect 130 stations spread across 6 MRT lines, catering to over 3 million daily ridership. There are around 5,800 buses, currently operating more than 370 scheduled bus services, run by 4 bus operators, which meets the needs of 3 to 4 million commuters daily. Singapore has around 65,000 vehicles engaged in the taxi & ride-hailing business, which supplements the mass transit, and caters to commuters looking for more comfort. Singapore’s urban infrastructure is well integrated with public transport, to make it more comfortable & efficient, such that even millionaires don’t mind using them.

Singapore has busted the myth, that public transport isn’t safe during the pandemic, by continuously running operations (Trains, Buses, Taxis), adhering to all safety precautions, and ensuring commuters comply too. Singapore is also on the path to transitioning all its public buses & taxi fleets to electric drivetrains and has decided to stop buying anymore polluting fossil fuel vehicles for its fleets.

A couple of suggestions to improve public transport efficiency & profitability:

1. Right-size vehicle deployment - Bus Transport fleets primarily comprise of large single-decker & double decker buses with a capacity of 30 to 100 passengers. This must be complemented by operating smaller 8 /12-seater electric mini-vans, on-feeder or short trunk services to serve new residential developments, connecting residents to major transport nodes such as MRT / Bus stations & malls. This will help to improve connectivity, fleet utilization & profitability.

2. Hybrid On-demand Service - Tech-enabled dynamic ‘bus hailing services, alongside peak-demand scheduled services, can help to streamline & optimize bus route planning & scheduling based on legacy & dynamic data. This can dramatically improve fleet utilization & financial viability.

In contrast to Singapore, developing countries are characterized by booming urban centers, a fast-growing middle class, inadequate public transport, congestion & pollution.

In India or other developing countries, you will find different kinds of vehicles, mostly built by small enterprises, catering to the needs for affordable last-mile transport. You will find Jeepneys in the Philippines, Tuk-tuks in Thailand, Trikes in Cambodia & Vietnam, Rickshaws & Share Autos in India. Most of these vehicles are over-crowded, not safe, or comfortable, but are available & affordable. And the market is growing exponentially.

The government of India is now incentivizing the switch to electric vehicles, especially for vehicles used in the fleet segment, under its FAME2 (Faster Adoption and Manufacturing of Hybrid & Electric Vehicle) scheme. This will enable more electric buses & taxis to ply on Indian roads. Already in China, some cities such as Shenzhen have switched completely to an electric fleet of buses (16,000) & taxis (22,000) and have witnessed a considerable drop in air pollution.

To cater to the needs of its citizens for mobility in bustling cities & town, India will have to start focusing on planned urban development, and integration of multi-modal transport. Transport solutions will need to be developed to cater to all sections of society. India must get rid of it’s colonial imposed ‘poverty mindset’ and invest in electric airconditioned vehicles for its public fleet. Even in developed nations, governments subsidise public transport, and compensate private operators for reduced fares provided to some sections of society.

Airconditioning of all public transport vehicles will make at least the 2-wheeler segment to switch to public transport. It’s estimated that 1 in 3 households own a 2-wheeler, and almost 20 million 2-wheelers are sold, compared to just 4 million cars each year. 2-wheelers contribute the most to congestion & pollution in urban areas, and there is also a high rate of 2-wheeler accidents every year ~ 150,000.

To start with, affordable last-mile connectivity must be ensured, so that families need not have to compulsorily invest in their own vehicles. Shuttle services & app-based ridesharing services should be able to connect residential localities with bus stops or train stations.

In India, electric Rickshaws have proliferated, because they cost less than petrol/diesel vehicles, have lower running costs, and are more profitable for driver/owners. In the last few years over 1.5 million electric rickshaws, transport over 60 million commuters every day, at exceptionally low fares of around 20 cents for a ride. Around 90% of these electric rickshaws are manufactured by small enterprises. But the concern today is how safe or comfortable is it to travel in such rideshare vehicles. It may not be safe for children to travel in such vehicles, and women may get more easily molested with no proper seating, or over-crowding of vehicles.

Airconditioned last-mile transport, seamlessly connected with bus & train stations, operating on-demand + fixed schedules, and at affordable fares; will ensure that millions of Indians, especially in our booming cities & towns, experience a safer & more comfortable journey every day.