Shared vs. Purchased: A Comparison of the Electric Scooter Market in Saudi Arabia
For those arriving in Riyadh, Saudi Arabia, without a car to drive, the underdeveloped public transportation system can leave a lasting impression. This public transport issue significantly increases the cost of getting around the city.
However, the emergence of shared electric scooters on Saudi streets has alleviated the shortcomings of public transportation.
In Saudi Arabia, you can often see electric scooters zipping along the streets or parked in rows on sidewalks. This sight is becoming increasingly common throughout the country.
In Saudi Arabia, there are two ways to ride an electric scooter: through sharing or purchasing. Let’s explore both markets.
1. Shared Electric Scooter Market in Saudi Arabia
The shared electric scooter market in Saudi Arabia is relatively scattered, with many companies operating in this sector. Prices may vary depending on the service provider, location, duration of the ride, and distance covered.
Take Go2, one of the local electric scooter sharing companies, as an example. The company operates in Jeddah and other Saudi cities, and the cost of using their electric scooters is 0.5 SAR per minute, with a minimum fare of 5 SAR.
According to relevant statistics, the average revenue per user (ARPU) in the electric scooter sharing market in Saudi Arabia is projected to reach 55.8 SAR by 2023.
Observations from colleagues at the Saudi branch of the Middle East Industry Research Institute suggest that several electric scooter sharing companies are currently operating or planning to operate in Saudi Arabia, including:
(1) Circ
A local Saudi company, Circ operates electric scooters in the Digital City, Diplomatic Quarter, Jeddah Obhur project, and residential areas in Riyadh in cooperation with the Saudi Public Pension Agency’s (PPA) real estate management department, Raza. Circ is the first electric scooter operator in the region to receive regulatory approval.
(2) Go2
Another local Saudi company providing smart shared mobility services in Jeddah and other cities.
(3) Lime
A US-based company that operates shared electric scooters in Dubai and is preparing to launch its services in Saudi Arabia.
(4) Careem
A large transportation platform in the Middle East and North Africa, similar to China’s Didi and Meituan, providing ride-hailing, food delivery, and electric scooter rental services in Saudi Arabia.
(5) Bird
A US-based mobility company operating in over 100 cities globally, with electric scooter services deployed in Riyadh, Jeddah, and Dammam.
(6) Neuron
A Singapore-based company operating shared electric scooters in over 20 cities globally, including Riyadh, Jeddah, and Dammam in Saudi Arabia.
We can download the apps of these companies to locate and unlock the nearest electric scooters.
According to market forecasts, the revenue in the Saudi Arabian electric scooter sharing market is projected to reach 2.906 million USD in 2023, with a compound annual growth rate (CAGR) from 2023 to 2027 of 5.72%. The number of users is expected to reach 227.5 thousand by 2027, with a user penetration rate of 0.6%.
For Saudis, riding an electric scooter is not only for fun but also a convenient way to travel short distances, commute to work, shop, or visit family and friends. The relatively low cost of electric scooters also makes them popular among Saudi residents.
Electric scooters have also caught the attention of local Saudi media. For example, Arab News quoted Saudi residents saying:
“People like to ride scooters because Riyadh’s districts are big, and sometimes you want to get to a nearby shop quickly to buy something, and a scooter is the best way to do it.”
“On days with good weather, people usually go to Diriyah to enjoy riding the scooters, so riding electric scooters together with friends has become a popular social activity.”
Electric scooters, especially, have gained popularity among young women. We learned from shared electric scooter operators that women between the ages of 18 and 27 are their primary users, and they are happy to share their riding experiences on social media.
Even more interestingly, shared electric scooters have received support from the Saudi government, who provides electric scooters for pilgrims to use around the Grand Mosque in Mecca to ease traffic congestion.
2. Purchased Electric Scooter Market in Saudi Arabia
In addition to shared electric scooters, many Saudis, especially young people, are beginning to purchase their own electric scooters.
Popular electric scooter brands in Saudi Arabia include:
(1) Xiaomi
Various models of Xiaomi electric scooters are currently available in Saudi Arabia, such as the Xiaomi Electric Scooter 3, with a top speed of 25 km/h and a range of 30 km.
(2) Kugoo
A Chinese brand, Kugoo models available in Saudi Arabia include the Kugoo S1 Plus foldable electric scooter, with a top speed of 30 km/h and a range of 25 km.
(3) Crony
A local brand offering high-performance electric scooters, such as the Crony Electric Kick Scooter V10, with a top speed of 64 km/h and a range of 50 km.
(4) Coolbaby
A local brand offering affordable and durable electric scooters, including the Coolbaby adult and children’s Kick Scooter, with a top speed of 20 km/h and a range of 15 km.
The rapid development of the electric scooter market in Saudi Arabia can be attributed to several factors:
(1) Increasing Urbanization
As of 2019, Saudi Arabia’s urban population reached a staggering 83.4%, and it is projected to reach 86.5% by 2025. This means more people are living in congested and crowded cities, and electric scooters can provide a convenient and quick way to navigate through traffic and avoid parking hassles.
(2) Growing Environmental Awareness
Saudi Arabia is one of the world’s largest producers and consumers of oil, but it also faces challenges in climate change and air pollution.
Electric scooters can help reduce greenhouse gas emissions and improve air quality by replacing fossil fuel-powered vehicles. The lower noise levels of electric scooters compared to traditional vehicles can also enhance the quality of life in urban areas.
(3) Affordability
Electric scooters are relatively cheaper compared to other means of transportation, such as cars, taxis, or public buses. Additionally, the maintenance and operational costs of electric scooters are low as they only require charging and occasional repairs.
(4) Flexible Parking Policies
Electric scooters are easy to fold and carry, which means they can be parked anywhere without taking up much space and without the need to pay parking fees. This saves users money and time for short-distance travel within or around communities.
3. Conclusion
As more and more Saudi residents embrace electric scooters as a convenient, affordable, and environmentally-friendly urban mobility option, the sales market for electric scooters continues to grow.
The Middle East and Africa region is expected to experience the fastest growth rate in the electric scooter market as countries such as Saudi Arabia, the United Arab Emirates, Egypt, and South Africa increasingly adopt electric scooters.
Chinese companies expanding overseas should pay attention to the Saudi market.