In a LinkedIn article, Navigant Research discusses how social distancing and the coronavirus pandemic is affecting public transportation and micromobility companies
As a result of social distancing to counter the spread of coronavirus, many individuals that once rode public transportation have found alternative ways to move around cities.
In a LinkedIn article, Navigant Research’s Ryan Citron, senior research analyst, discussed the financial impact of social distancing on public transportation and micromobility companies.
According to Citron, New York City’s subway system saw 948,000 fewer trips in March 2020 compared to the previous year, while the city’s bike share program reported a 67% increase in ridership in early March. Citron said that this upward trend may be short lived though as pandemic-related restrictions tighten.
“While micromobility service usage initially spiked due to decreased public transport ridership, some e-bike and e-scooter sharing programs are now being suspended,” Citron said.
He explained that companies like Lime, an electric scooter and bike company, recently paused its e-scooter sharing program in a few states and countries and expects to make layoffs to its workforce.
“While micromobility is replacing significant levels of public transport usage, it is likely that more micromobility sharing companies will suspend services if COVID-19 continues to spread,” Citron said, adding that businesses that offer online direct-to-consumer e-scooter and e-bike sales are likely to gain an advantage in the coming months as more micromobility sharing services get suspended due to COVID-19.