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Bike-sharing - South Africa

South Africa

South Africa is expected to see a revenue of US$11.61m in the Bike-sharing market by 2024.
The revenue is projected to grow annually at a rate of 8.06% for the period between 2024 and 2028, resulting in a market volume of US$15.83m by 2028.
The number of users in the Bike-sharing market is expected to reach 2.12m users by 2028, with a user penetration of 3.0% in 2024 and 3.3% by 2028.
The average revenue per user (ARPU) is expected to be US$6.32.
By 2028, 85% of the total revenue in the Bike-sharing market will be generated through online sales.
In the global comparison, China is expected to generate the most revenue, with US$5,870m in 2024.
South Africa's bike-sharing market is gaining popularity among commuters and tourists, with initiatives such as Jozi Bikes and Up Cycles leading the way.

Key regions: Thailand, China, Germany, Saudi Arabia, United States

Definition:

The Bike-sharing market includes short-term bike-sharing services. In bike-sharing services, bicycles are generally owned by a bike-sharing provider and are independently reserved by customers around the clock. Customers are required to open an account with the bike-sharing provider and can then reserve bicycles. This is usually done with a smartphone app, but there are also service providers that allow reservations to be made via the provider's website, by telephone, or at a terminal.

The two most frequently used bike-sharing varieties are the following: station-based (e.g., Stadtrad and Citi Bike New York) and free-floating (such as nextbike and ofo). With station-based bike-sharing, a bicycle is retrieved from a bike-sharing station and returned to either the same station or dropped off at another station. With free-floating bike-sharing, it is possible to find bicycles everywhere within the service provider's business zone and leave the bicycle anywhere in accordance with traffic regulations. Peer-to-peer bike-sharing is not included in the market definition of this market. Moped-sharing services are not available in all countries; thus, only a limited number of countries and regions can be selected.

Additional Information:

The main performance indicators of the Bike-sharing market are revenues, average revenue per user (ARPU), user numbers and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the mentioned market. User numbers show only those individuals who have made a reservation, independent of the number of travelers on the booking. Each user is only counted once per year.

The booking volume includes all booked rides made by users from the selected region, regardless of where the ride took place.

For further information on the data displayed, refer to the info button right next to each box.

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Analyst Opinion

The Bike-sharing market in South Africa has been experiencing significant growth in recent years. Customer preferences have shifted towards more sustainable and convenient transportation options, leading to an increased demand for bike-sharing services. Additionally, the local special circumstances and underlying macroeconomic factors have also contributed to the development of the market.

Customer preferences: Customers in South Africa are increasingly looking for sustainable transportation options that are also convenient and cost-effective. Bike-sharing provides an ideal solution, as it allows users to easily rent a bike for short trips, reducing their reliance on cars and public transportation. The flexibility and affordability of bike-sharing services have made them popular among commuters, tourists, and students alike.

Trends in the market: One of the key trends in the South African Bike-sharing market is the expansion of bike-sharing networks in major cities. Companies are partnering with local governments to establish docking stations and increase the availability of bikes. This expansion has made bike-sharing more accessible to a larger population, leading to an increase in the number of users. Another trend is the integration of bike-sharing with other modes of transportation. Many bike-sharing companies are partnering with ride-hailing services or public transportation providers to offer seamless travel options. This integration allows users to easily switch between different modes of transportation, making their journeys more efficient and convenient.

Local special circumstances: South Africa has a unique landscape and climate that makes it well-suited for bike-sharing. The country has a warm climate for most of the year, which encourages outdoor activities like cycling. Additionally, South Africa has a growing tourism industry, with many visitors looking for sustainable and unique experiences. Bike-sharing allows tourists to explore the country's cities and natural attractions at their own pace, contributing to the growth of the market.

Underlying macroeconomic factors: The South African government has been implementing policies to promote sustainable transportation and reduce carbon emissions. This includes initiatives to improve cycling infrastructure and encourage the use of non-motorized transportation. These policies have created a favorable environment for the development of the Bike-sharing market. Furthermore, the rising urbanization and population growth in South Africa have led to increased traffic congestion and a greater demand for alternative transportation options. Bike-sharing provides a solution to these challenges by offering a convenient and environmentally friendly mode of transportation. In conclusion, the Bike-sharing market in South Africa is developing due to changing customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The shift towards sustainable transportation options, the expansion of bike-sharing networks, and the integration with other modes of transportation have all contributed to the growth of the market. Additionally, the unique landscape and climate of South Africa, along with government initiatives to promote sustainable transportation, have further fueled the development of the Bike-sharing market in the country.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of bike-sharing services.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.