On-demand dockless electric scooter (e-scooter) rentals have transformed urban transit over the past decade. Initially, micro-mobility operators enjoyed high demand with few direct rivals in city centres. However, metropolitan markets have recently experienced a rapid expansion of competing options: dockless electric bikes (e-bikes), upgraded public bike-sharing schemes with heavy municipal subsidies, and low-cost ride-hailing services for short trips. Furthermore, the retail price of personal electric scooters has plummeted, making ownership an increasingly viable alternative for daily commuters.
"Two years ago, renting an e-scooter was the only fast way to bypass inner-city traffic congestion without waiting for a bus," says urban transport consultant Marcus Vance. "But now, with municipal e-bike fleets parked on every corner and the cost of owning an entry-level personal e-scooter dropping below £250, consumers are highly sensitive to rental rate hikes. Even a small increase in the per-minute fee leads to users switching to other options."
Evaluate two factors which may determine the value of the price elasticity of demand for on-demand electric scooter rentals.
