Indonesia Bike Sharing Market Research Report 2023

Indonesia Bike Sharing Market Synopsis

Indonesia Bike Sharing Market Size Was Valued at USD 56.53 Billion in 2022 and is Projected to Reach USD 139.47 Billion by 2030, Growing at a CAGR of 11.95 % From 2023-2030.

• The Indonesian bike-sharing market has emerged as a rapidly growing sector within the country's transportation industry. Major cities like Jakarta, Surabaya, and Bandung have witnessed significant urbanization and population growth in recent years, leading to increased demand for alternative transportation options.
• Environmental concerns also play a pivotal role in driving the interest in sustainable transportation solutions. As awareness of climate change and environmental degradation grows, more and more citizens are opting for greener modes of transport. Bike sharing, as a carbon-neutral and emission-free option, has gained traction among environmentally-conscious individuals, contributing to its adoption in major Indonesian cities.
• The prevalence of traffic congestion in Indonesia's urban centers has become a major challenge for commuters, resulting in longer travel times and increased air pollution. In response, bike sharing offers a convenient alternative, allowing users to maneuver through congested streets and complete short-distance commutes efficiently.
• The rapid penetration of mobile technology has significantly facilitated the growth of bike-sharing services in Indonesia. With widespread use of smartphones and mobile apps, users can easily locate and unlock bikes, making the entire process seamless and user-friendly. This ease of access has contributed to the popularity of bike sharing among the tech-savvy population.

Top Key Players:

Go-Jek (Indonesia), Grab (Singapore), oBike (Singapore), Blue Bird Group (Indonesia), BIRD (China), GOWES (Indonesia), AnRENT Bike (Indonesia), Veloo Indonesia (Indonesia), Whiz Bike (Indonesia), B-Bike (Indonesia), Spin (United States), Djakarta Bike (Indonesia), Push Bike (Indonesia), Joybike (Indonesia), Bike N' Box (Indonesia), Let's Bike (Indonesia), Zonetrip (Indonesia), SEPEDA (Indonesia), Yellow Bike (Indonesia), Sophei Bikes (Indonesia), and Other Major Players.

The Indonesia Bike Sharing Market Trend Analysis

Growing Demand for First- and Last-Mile Connectivity in Country

• The growing demand for first- and last-mile connectivity has emerged as a significant driver influencing the trend analysis of the bike-sharing market in Indonesia. In densely populated urban areas, commuters often face challenges when it comes to accessing traditional public transportation options for their daily journeys.
• One of the key benefits of bike sharing in addressing first- and last-mile connectivity is its ability to complement existing public transportation systems. By using bikes for the initial and final segments of their journeys, commuters can seamlessly connect to major transit hubs, reducing their overall commute times and making their daily travel more efficient.
• Aside from practical advantages, bike sharing aligns with broader health and sustainability goals. Encouraging the use of bikes for first- and last-mile travel promotes physical activity, contributing to a healthier lifestyle for commuters. Furthermore, the integration of cycling as a transportation option supports environmental sustainability by reducing the carbon footprint of daily commuting.

Growing Urbanization

• The ongoing trend of growing urbanization in Indonesia presents a significant opportunity for the bike-sharing market. As more people migrate to urban areas in search of better opportunities and improved living standards, the demand for efficient and sustainable transportation solutions escalates. This creates a favorable environment for bike sharing to thrive and make a positive impact on urban mobility.
• Bike sharing addresses one of the key challenges of urbanization: traffic congestion. With more people residing in cities, traffic jams become a common occurrence, leading to longer commuting times and increased pollution. Bike sharing offers a practical solution, allowing commuters to bypass congested roads and reach their destinations faster, reducing overall traffic congestion and enhancing urban mobility.
• As urban areas expand, public transportation networks may not cover every nook and corner. Bike sharing fills this gap by providing last-mile connectivity to and from public transit stations. Commuters can easily access bike-sharing services near bus stops or train stations, making their overall journey more convenient and seamless.
• As more people become conscious of their environmental impact, they seek greener alternatives for transportation. Bike sharing aligns well with this shift towards sustainability, as it produces zero emissions and reduces the carbon footprint of urban commuting.

Segmentation Analysis of The Indonesia Bike Sharing Market

Bike Sharing market is segmented into the Bike Type, Sharing System, and User Type. By Bike Type, E-bike segment is Anticipated to Dominate the Market Over the Forecast Period.

• In recent years, there has been a notable shift in consumer preferences towards e-bikes in the bike-sharing market. The e-bike segment is anticipated to dominate the market over the forecast period due to several compelling reasons. One of the key advantages of e-bikes is their ability to provide an enhanced user experience.
• The topography of Indonesia, which includes hilly and challenging terrain, also contributes to the dominance of e-bikes in the market. The electric motor's assistance enables users to navigate inclines and difficult routes more easily, making e-bikes a practical choice for various geographic locations.
• e-bikes have a broader demographic appeal. They attract a diverse range of users, including older adults and individuals who may have physical limitations or health concerns. E-bikes offer a more inclusive option for urban transportation, accommodating a wider spectrum of riders.
• From an environmental perspective, e-bikes are still considered an eco-friendly transportation option. While they have an electric motor, they produce lower emissions compared to motorized vehicles, aligning with the increasing environmental consciousness among consumers.

Country Analysis of The Indonesia Bike Sharing Market

• The rapid urbanization and increasing population density in Indonesia's major cities create a growing need for efficient and sustainable transportation options. As urban areas become more crowded and traffic congestion worsens, bike-sharing services offer a convenient and eco-friendly alternative for short-distance commutes and first- and last-mile connectivity.
• The state of transportation infrastructure, particularly cycling infrastructure, is a critical factor influencing the success of bike-sharing services in Indonesia. Well-developed cycling infrastructure, such as dedicated bike lanes, bike-friendly roads, and secure bike parking facilities, can significantly boost the adoption of bike-sharing services.
• The integration of bike-sharing services into popular ride-hailing and super apps like Go-Jek and Grab has had a positive impact on the bike-sharing market. These super apps offer multiple services, including ride-hailing, food delivery, and bike sharing, all within a single platform.

Covid-19 Impact Analysis on Indonesia Bike Sharing Market

• To adhere to government guidelines and protect the safety of users and staff, many bike-sharing operators in Indonesia made the difficult decision to temporarily suspend their services. The suspension of operations was observed in certain areas or even across entire cities where lockdown measures were more stringent. This further impacted the revenue streams of these operators and limited mobility options for potential users.
• As the pandemic progressed, the fear of using public transportation due to the risk of infection led some individuals to seek alternative modes of transport. Many people opted for personal bikes instead of shared bikes, as it provided a way to maintain physical distancing and reduce exposure to crowded spaces. This shift in mobility preferences affected the utilization of bike-sharing services during the pandemic.
• While the immediate impact of the pandemic was challenging for the bike-sharing market, there is potential for increased demand in the long term. As cities gradually reopened and people returned to their workplaces, some commuters opted for bike sharing as a safer and healthier alternative to public transport. This trend indicated the potential for sustained demand for bike-sharing services in the post-pandemic era.

The revenue data of the bike-sharing market in Indonesia from 2018 to 2022 demonstrates consistent growth, increasing from 25.93 million USD in 2018 to 53.88 million USD in 2022. This upward trend reflects the market's strong demand, driven by factors like urbanization, environmental awareness, and efforts to address traffic congestion. The involvement of prominent investors in the pre-IPO fundraising round for GoTo Group underscores the market's potential and attractiveness in Indonesia's digital ecosystem. The bike-sharing industry's evolution and adaptation to changing consumer preferences position it to play a significant role in the country's sustainable urban mobility solutions.

Top Key Players Covered in The Indonesia Bike Sharing Market

• Go-Jek (Indonesia)
• Grab (Singapore)
• oBike (Singapore)
• Blue Bird Group (Indonesia)
• BIRD (China)
• GOWES (Indonesia)
• AnRENT Bike (Indonesia)
• Veloo Indonesia (Indonesia)
• Whiz Bike (Indonesia)
• B-Bike (Indonesia)
• Spin (United States)
• Djakarta Bike (Indonesia)
• Push Bike (Indonesia)
• Joybike (Indonesia)
• Bike N' Box (Indonesia)
• Let's Bike (Indonesia)
• Zonetrip (Indonesia)
• SEPEDA (Indonesia)
• Yellow Bike (Indonesia)
• Sophei Bikes (Indonesia), and Other Major players.

Key Industry Developments in the Indonesia Bike Sharing Market

In November 2021, GoTo Group, which holds the distinction of being the largest digital ecosystem in Indonesia, recently made an announcement regarding the successful first close of its pre-IPO fundraising round. During this initial phase of fundraising, the company managed to secure an impressive sum of over US$1.3 billion.