Electric Scooter Sharing

A global technology company is evaluating whether to enter the electric scooter sharing market in a major city. The client has a strong technology platform but limited experience in physical mobility operations. EY-Parthenon has been asked to identify the key factors that should drive the decision, assess the opportunity, and recommend a market entry approach. This is a classic market entry case requiring structured analysis of market attractiveness, competitive dynamics, regulatory risk, unit economics, and optimal entry mode.

About the Client Global technology company — strong platform/software capability, limited physical operations experience Evaluating entry into the e-scooter sharing market in one (or more) major cities Strategic goal: unclear — could be revenue diversification, data collection, urban mobility positioning, or all three (clarify with interviewer) The E-Scooter Sharing Market Shared e-scooter market has grown rapidly in urban areas across Europe, the US, and Asia since 2017 Key players: Lime, Bird (US-origin); Tier, Voi, Dott (European-origin) Business model: per-minute pricing with unlock fee; fleets of 100–5,000+ scooters per city Cities regulate entry through permit systems — often with limited licences awarded per city Unit economics are challenging: high capex per vehicle, significant maintenance and charging costs, weather-dependent utilisation Regulatory Landscape City permits often required — competitive tender process; licences may be limited in number Helmet laws, speed limits, and designated parking zones vary by market Several cities (Paris, Singapore) have introduced bans or severe restrictions after early overproliferation Regulatory risk is binary in this market — a city can reverse permits with limited notice

The client must decide: (a) whether the e-scooter sharing market is an attractive opportunity, (b) which city or cities to enter if so, and (c) how to enter — build, buy, or partner. The regulatory environment makes this more complex than a standard market entry case: the market is attractive in the right cities but near-irreversible if the wrong city or entry mode is chosen. EY-Parthenon must structure a clear recommendation with the regulatory dimension front and centre.

Step 1 — Clarify before structuring Ask: which city? What is the client's motivation (revenue vs. strategic)? Does the client have an app platform that could differentiate its offering? These answers fundamentally change the recommendation. Step 2 — Market entry framework Is the market attractive? Score the city on density, transport gaps, weather, competition, and regulatory environment. Only proceed if the city scores well on ≥3/5. Does the client have the right to win? The client's tech platform is a genuine differentiator for route optimisation and fleet management — this is the core competitive advantage to articulate. What is the optimal entry mode? Given the client's tech strength but limited operations experience, a partnership or acquisition of a small local operator (to inherit permits and operational know-how) is the most credible entry path. Step 3 — Regulatory risk management Treat regulation as a binary risk, not a factor. Recommend a city where the regulatory framework is established and stable — not a first-mover city where the policy environment is still evolving. Stage entry by piloting in one city before committing capital to a second.