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Bike-sharing - Kenya

Kenya

Kenya's Bike-sharing market is projected to reach US$9.04m in 2024.
The revenue is forecasted to display an annual growth rate (CAGR 2024-2029) of 10.41%, leading to a projected market volume of US$14.83m by 2029.
By 2029, the number of users in Kenya's Bike-sharing market is expected to reach 1.60m users.
User penetration is estimated to be 1.8% in 2024 and 2.6% by 2029.
The average revenue per user (ARPU) is anticipated to be US$8.77.
In Kenya's Bike-sharing market, 100% of total revenue will come from online sales by 2029.
When compared globally, China is expected to generate the most revenue, with US$5,515m in 2024.
Kenya's bike-sharing market is rapidly growing, with a focus on urban areas to address transportation challenges and promote sustainable mobility.

Key regions: South America, Malaysia, India, Indonesia, Saudi Arabia

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 Kenya has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Kenya have shown a growing interest in environmentally friendly and cost-effective transportation options, leading to an increased demand for bike-sharing services. The convenience and flexibility of bike-sharing systems have also appealed to customers looking for efficient ways to navigate the busy urban areas in the country.

Trends in the market: One notable trend in the Bike-sharing market in Kenya is the expansion of services to cater to a wider range of customers. Companies are increasingly offering electric bikes and incorporating technology such as mobile apps for easy access and payment. This trend is driven by the need to stay competitive and meet the evolving needs of the market.

Local special circumstances: Kenya's unique geographical features, such as its diverse terrain and varying climate conditions, have influenced the development of the Bike-sharing market in the country. Companies have had to adapt their services to accommodate these special circumstances, such as offering sturdy bikes suitable for different road conditions and weather patterns.

Underlying macroeconomic factors: The growing urbanization and population density in Kenya's major cities have played a significant role in driving the demand for Bike-sharing services. As more people move to urban areas for work and other opportunities, there is a greater need for sustainable transportation options, making bike-sharing an attractive solution. Additionally, government initiatives to promote green transportation and reduce traffic congestion have further supported the growth of the Bike-sharing market in Kenya.

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.