Shared mobility has the potential to offer short- and long-term solutions to address the UN Sustainable Development Goals (SDGs) on transport, says a recent report.
And Africa will play an important role, as its common mobility market is set to grow faster than other regions by 2030.
Management consultancy OliverWyman’s The Global Impact of Shared Mobility The report states that transport systems will determine how far cities will be able to contribute to the global goals set by the 2015 Paris Agreement to combat climate change and the UN’s Sustainable Development Goals (SDGs) for a more prosperous, fair future.
“Transportation systems are intrinsically linked to the well-being of cities. They affect quality of life, economic development, social cohesion and the environment,” the report says.
“According to the UN SDGs, sustainable transport goals must include universal access, enhanced safety, improved resilience, greater efficiency and reduced environmental impact.
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“The most obvious answer is to invest more in mass transit as the most environmentally sustainable and efficient mode of urban transportation, with the goal of making it more affordable and accessible. But that can take years of investment and building infrastructure.
“Meanwhile, shared mobility – everything from ride-hailing and car-sharing to e-bike and e-scooter sharing – has emerged as a potential solution that offers sustainable, efficient, safe and affordable on-demand transport ».
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Africa shows the greatest growth
The report further points out that more than nine million people worldwide are estimated to earn income from shared mobility services in 2023, and the number is projected to increase to 16 million by 2030.
“Asia (including the Middle East) accounts for 71% of jobs, while Africa has the strongest growth: jobs are expected to grow by 113% from 2023 to 2030. Touring drivers typically earn over minimum wage in Europe (+37% in Berlin and +91% in Tallinn) and above wages for jobs with comparable skill levels in Africa (up to +130% in South Africa and Nigeria).
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The global shared mobility market is expected to grow from $258 billion in 2023 to $401 billion in 2030 (a compound annual growth rate, or CAGR, of 6.5%).
Some of the most recently introduced segments are among the fastest growing, the report says.
“These include micromobility, which is expected to grow from $11.4 billion in 2023 to $22.6 billion in 2030 (CAGR 10%) and car sharing, with a projected annual growth rate of 11%, lifting the market from $11.3 billion in 2023 to $23.6 billion in 2030.
“While the market is growing rapidly, it still represents less than 5% of total global mobility spending, which is more than $10 trillion.”
Africa’s development in the field of shared mobility
Africa represents only a small part of the global shared mobility market, with an estimated market size of $4.2 billion in 2023.
However, between 2023 and 2030, the African market is expected to grow by 9% per year on average, a higher growth rate than the other regions, the report highlights.
By 2030, the market size is expected to have nearly doubled compared to 2023, to $7.8 billion.
“While its market size is currently small, Africa will host much of the future potential.
“Its share of the rural population is the highest in the world, but its urban population is the fastest growing in the world and has the largest proportion of the population under 30 in the world.”
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The example of Lagos
“Africa is expected to host five of the world’s 41 megacities by 2030 – one of them will be Lagos.”
The report states that due to Lagos’ growing demand for mobility and currently inefficient infrastructure, shared mobility – as a flexible on-demand service – has the potential to contribute positively to the city’s economic development.
“For example, there are more than 50 million trips to Lagos annually. These provide jobs for drivers and connect more areas to the city, allowing people to commute to work. An estimated 40,000 drivers are currently working in Lagos and many would not have a job otherwise.”
The report recommends that the city focus on building public transport infrastructure so that people can choose mass transit over motorized mobility. Targeted investments in road infrastructure can enhance safe driving and improve transport services.
Overall, the report says that for the sector to realize its full potential, a collaborative approach involving providers, regulators and users will be needed.
“With the industry predicted to grow into a $400 billion market by 2030, addressing issues such as congestion, emissions, safety concerns and working conditions will be vital.”
View OliverWyman’s Shared Mobility Global Impact report here.
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