India Scooter Rental Service Market Outlook to 2028

India Scooter Rental Service Market Overview

In recent years, the India Scooter Rental Service Market has experienced substantial growth, this is reflected by the global scooter rental service market reached a valuation of USD 5.2 billion in 2023 growing at a CAGR of 16.2% driven by the increasing urbanization and rising traffic congestion in major cities.

Key players in the India scooter rental service market include Bounce, Vogo, Yulu, Ola Electric, and Rapido. These companies have established a strong presence in urban areas, leveraging technology to offer seamless rental experiences and flexible payment options.

Bangalore was the leading city in the scooter rental market in 2023. This dominance is attributed to the city’s high population density, heavy traffic congestion, and a tech-savvy population that readily adopts app-based services.

In 2023, Bounce announced a strategic partnership with Shell to install battery-swapping stations across major cities in India. This development is aimed at reducing downtime for electric scooters and enhancing user convenience.

India Scooter Rental Service Market Segmentation

The India Scooter Rental Service market is segmented by various factors like Vehicle, Rental Duration, and Region.

By Vehicle Type: India Scooter Rental Service Market is segmented by vehicle type into electric scooters and conventional scooters. In 2023, electric scooters dominated the market due to growing environmental awareness and government incentives promoting electric mobility. The demand for electric scooters is propelled by their low operating costs and ease of use.

By Rental Duration: India Scooter Rental Service Market is segmented by rental duration into Short-term Rentals (Hourly/Daily) and Long-term Rentals (Weekly/Monthly). Short-term rentals dominated the market in 2023 due to their flexibility and convenience for users needing quick and affordable transportation for short distances.

By Region: India Scooter Rental Service Market is segmented by region into North, South, East, and West. The southern region dominated the market in 2023. This dominance is due to high urbanization rates, a large young population, and the presence of major tech hubs that encourage the use of innovative transportation solutions.

India Scooter Rental Service Market Competitive Landscape

Company

Establishment Year

Headquarters

Bounce

2014

Bangalore, India

Vogo

2016

Bangalore, India

Yulu

2017

Bangalore, India

Ola Electric

2017

Bangalore, India

Rapido

2015

Bangalore, India

Rapido: In 2022, Rapido secured $180 million in its Series D funding round, with significant investment out of which Swiggy invested $124.6 million followed by TVS Motor Company invested $15 million and West Bridge Capital invested $30 million. The remaining investment came from Shell Ventures and Nexus Ventures.

Ola Electric: In 2024, Ola Electric to invest $100 million in the initial phase of constructing its Gigafactory for lithium-ion battery cell production. This investment will enable Ola's electric scooters to incorporate locally-produced battery cells as soon as next year.

India Scooter Rental Service Market Analysis

India Scooter Rental Service Market Growth Drivers

Increasing Smartphone Penetration: The proliferation of smartphones is a significant growth driver for the scooter rental service market in India. With over 800 million smartphone users in 2024, the convenience of accessing rental services through mobile applications is boosting the market. The seamless integration of GPS and digital payment options further enhances user experience, making scooter rentals a preferred choice for urban commuters.

Rising Fuel Prices: The increase in fuel prices, which reached INR 95 per litre in 2024, is driving the demand for economical transportation alternatives like scooter rentals. This trend is pushing more consumers to opt for rental services, which offer cost-effective and fuel-efficient options compared to personal vehicles.

Growing Tourism Industry: India’s tourism industry, with over 8 million foreign tourists visiting India in 2023, is contributing to the growth of the scooter rental market. Tourists prefer scooters for their convenience and flexibility, especially in urban and tourist-centric areas. This trend is encouraging rental companies to expand their fleets to cater to the increasing demand.

India Scooter Rental Service Market Challenges

Lack of Infrastructure: Inadequate infrastructure for parking and charging scooters remains a significant challenge in the scooter rental market. This deficiency hampers market growth and user satisfaction, necessitating investments in infrastructure development to support the increasing demand for scooter rentals.

Regulatory Hurdles: Regulatory challenges, including stringent licensing and operational restrictions, continue to pose barriers to market expansion. In 2024, many cities in India still lack clear regulations for scooter rental services, leading to operational uncertainties for service providers. These regulatory ambiguities impede market growth and complicate the operational landscape for companies.

India Scooter Rental Service Market Government Initiatives

FAME II Scheme: The Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme, with an allocation of INR 10,000 crore, continues to support the electric scooter market. In 2023, Rs 5,422 crore has been spent under FAME II, subsidizing 12,16,380 vehicles in total.

Smart City Mission: The Smart City Mission, which aims to develop 100 smart cities by 2024, includes provisions for sustainable transportation solutions like scooter rentals. This initiative is enhancing urban mobility and infrastructure, facilitating the growth of the scooter rental market.

India Scooter Rental Service Future Market Outlook

The India scooter rental service market is poised for remarkable growth driven by expansion to tier-2 and tier-3 cities, integration of AI and IOT, and growing adoption of electric scooters.

Future Market Trends

Expansion to Tier-2 and Tier-3 Cities: Over the next five years, the scooter rental market is expected to expand significantly in tier-2 and tier-3 cities. With urbanization spreading to these regions, the demand for affordable and convenient transportation solutions will drive market growth.

Integration of AI and Io T: The adoption of Artificial Intelligence (AI) and Internet of Things (Io T) technologies will revolutionize the scooter rental market. By 2028, real-time data analytics, predictive maintenance, and enhanced safety features will be standard, improving user experience and operational efficiency.
Please Note: It will take 5-7 business days to complete the report upon order confirmation