Global Two-Wheeler Rental Market Assessment, By Service Type [Pay as You Go, Subscription-Based], By Propulsion Type [Pedal, Electric, Internal Combustion], By Operational Model [Dock Less, Station-Based, Others], By Region, Opportunities and Forecast, 20

Global two-wheeler rental market is projected to witness a CAGR of 11.10% during the forecast period 2025-2032, growing from USD 4.54 billion in 2024 to USD 10.54 billion in 2032F, owing to urban congestion, changing mobility preferences, and rising tourism. Increasing demand for affordable and flexible transportation, especially in emerging economies, supports this trend. Shared mobility platforms and app-based booking systems make rentals convenient and accessible. Consumers, particularly millennials, prefer rentals over ownership due to cost and maintenance advantages. Additionally, growing environmental consciousness is pushing users toward greener, two-wheeled transportation options, including e-scooters and electric bikes offered by rental platforms, advanced technologies, and a strong cultural connection among enthusiast communities globally. Local motorcycle manufacturing companies are also introducing rental programs for further expansion of the company’s verticals.

For instance, in September 2023, Royal Enfield (Eicher Motors Limited) launched a motorcycle “Rental Program” across 25 Indian cities, collaborating with over 40 motorcycle rental operators. Royal Enfield Rental is going to boast a fleet of over 300 motorcycles available for rent. The service is accessible in Indian cities such as Ahmedabad, Mumbai, Gujarat, Maharashtra, Chandigarh, Dharamshala, Leh, Manali, Haridwar, and Rishikesh.

Urban Congestion and Last Mile Connectivity Fuels Global Two-Wheeler Rental Market Demand

Rising urban congestion and challenges in last-mile connectivity are major drivers for two-wheeler rentals. In densely populated cities, two-wheelers offer an alternative to cars and public transport. They navigate traffic better and help commuters avoid delays. Rental services, especially app-based platforms, provide flexibility for users to pick up and drop off vehicles at convenient locations. This makes them a practical solution for daily commuting needs, especially for professionals and students in urban centers lacking efficient public transportation options. The use of rental two-wheelers has increased in cities as they deliver ease in end-to-end connectivity.

For instance, in September 2024, Lime (Neutron Holdings, Inc.) launched its shared e-scooter program in Vancouver, with 100 e-scooters and 27 parking stations across Hastings-Sunrise and Grandview-Woodland. In collaboration with the City of Vancouver, the parking stations were designed to make a clear end-of-trip location while keeping streets safe and uncluttered.

Tourism is a strong catalyst for the two-wheeler rental market. Tourists prefer two-wheelers for their affordability and ease of exploration in unfamiliar cities, beaches, or hill stations. They allow travelers to experience local culture more intimately than taxis or buses.

Cost Effectiveness and Maintenance-Free Mobility to Shape the Market Dynamics

Ownership of two-wheelers includes expenses such as EMIs, maintenance, fuel, insurance, and depreciation. Rentals eliminate these overheads, offering a maintenance-free and cost-effective alternative. Users pay only for the duration or distance traveled, making it attractive for short-term use. This model appeals particularly to college students, gig workers, and urban millennials. With the pay-as-you-go model gaining traction, two-wheeler rentals align perfectly with the growing preference for flexible and low-commitment mobility solutions, offering both personal freedom and financial ease.

The integration of GPS, mobile apps, digital payment systems, and real-time tracking has revolutionized the two-wheeler rental experience. These technologies ensure transparency, ease of use, and safety. Users can locate, unlock, and return vehicles through their smartphones. Operators leverage data analytics for vehicle placement, maintenance scheduling, and demand prediction. This tech-driven approach not only enhances user convenience but also improves fleet utilization and operational efficiency, making rentals more scalable and appealing to digitally savvy consumers in urban environments.

Pay as You Go Segment Leads in the Global Two-Wheeler Rental Market

The pay as you go (PAYG) model is leading in the two-wheeler rental market due to its unmatched flexibility and affordability. It allows users to rent bikes or scooters without long-term commitments, making it ideal for short trips, daily commutes, or spontaneous travel needs. Unlike subscription models, PAYG requires no upfront investment or monthly charges, which appeals to cost-conscious customers, students, and tourists. This model is highly favored in urban areas, where users prefer quick, on-demand transport over public transit or car ownership. Its digital-first nature — allowing booking, payment, and vehicle access via smartphone apps- aligns perfectly with the tech-savvy behavior of younger demographics. Rental operators also benefit, as PAYG ensures steady demand and quicker fleet turnover. Furthermore, the companies also launch new programs that support movements and ensure women's safety.

For instance, in February 2025, Rapido (Roppen Transportation Services Private Limited) announced to launch of 'Bike Pink': Women-Only Bike Taxi Service in Karnataka, India. Rapido set an ambitious target to create 25,000 jobs for women by recruiting and training them as ""captains"" (drivers) for the service. Rapido conducted a similar initiative in Chennai in September 2023, where female drivers operated electric bikes and received training from local nonprofit organizations. Rapido operates on a ""pay as you go"" basis; users pay a fare for each ride they book through the Rapido app.

Asia-Pacific leads in the Global Two-wheeler Rental Market

Asia-Pacific dominates the two-wheeler rental market due to its large population, high urban density, and traffic congestion in cities. Motorbikes and scooters are already popular in this region, creating a natural demand for rentals. Rapid digitalization and smartphone penetration have boosted the growth of app-based rental platforms. In countries such as India, Vietnam, and Indonesia, rentals provide an affordable commuting solution amid rising fuel prices and inadequate public transport. Additionally, local governments are supporting shared mobility initiatives and electric vehicle adoption, offering subsidies and designated parking areas for rental operators. Touristic hotspots in Southeast Asia also see high demand from international and domestic travelers. The region’s mix of young demographics, economic diversity, and evolving transport infrastructure positions it as the global leader in two-wheeler rental adoption and innovation.

For instance, in March 2022, Yamaha Motor Co., Ltd. announced Moto Business Service India Pvt. Ltd. (MBSI) as a new firm in India. Additionally, the business started renting motorcycles to Royal Brothers, a nearby mobility service provider that provides additional services in addition to motorbike rentals.

Impact of the United States Tariff on the Two-wheeler Rental Market

U.S. tariffs on imported auto components and vehicles impact the global two-wheeler rental market, especially for companies relying on international supply chains. Tariffs increase the costs of spare parts and imported bikes, affecting overall fleet expansion and maintenance budgets. Operators are likely to pass these costs to consumers or limit investment in fleet upgrades, especially in markets where margins are narrow. Furthermore, tariffs disrupt partnerships with foreign OEMs, delaying vehicle availability. This forces rental providers to either localize sourcing or shift to alternative, tariff-free suppliers to maintain competitive pricing.

Key Players Landscape and Outlook

Major competitors focus on scalability, convenience, and sustainability in the fragmented market. Key players prioritize expanding urban footprints through partnerships with local governments and real estate hubs for parking and docking points. Fleets are increasingly focused on electric scooters to align with green mobility trends and reduce fuel costs. Apps are being constantly optimized for seamless booking, navigation, and payments. Data analytics are also utilized to monitor usage patterns, optimize fleet distribution, and reduce downtime. Marketing strategies emphasize affordability, flexibility, and eco-friendliness, targeting college students, tourists, and gig workers. Subscription-based models, loyalty programs, and fleet-sharing collaborations are also being implemented to improve user retention and differentiate offerings. Emphasis is also placed on the usage of electric vehicles such as electric scooters and bikes.

For instance, in February 2025, Mobycy (Zypp Electric) partnered with IndoFast Energy to deploy 100,000 EVs in India. The newly established fleet of 100,000 electric two-wheelers (E2Ws) set to be deployed throughout the eight major cities of India, which include Delhi NCR, Mumbai, Bengaluru, Hyderabad, Pune, Lucknow, and Jaipur, thereby improving efficiency for delivery partners and businesses.