Challenges for Shared Scooter Companies in Groningen as Moped Numbers Increase
Challenges for Shared Scooter Companies in Groningen as Moped Numbers Increase
New rules and market changes make it hard for scooter companies to survive while mopeds increase in numbers, GO Sharing is withdrawing from Groningen.
Shared scooter companies like GO Sharing, Felyx, and Check are struggling in Groningen due to strict rules and other challenges. GO Sharing, known for its bright green scooters, has pulled out of Groningen and ten other Dutch cities, leaving only Amsterdam and Haarlem in their service area. The company says that tough regulations, like the helmet requirement introduced in January 2023, make it hard to stay profitable.
The demographic and geographical factors of Groningen, such as its younger population and proximity to other cities, initially made it a promising market for shared scooters. However, the helmet rule, which applies to scooters that can go up to 25 kilometres per hour, along with the introduction of designated parking zones called digital hubs, have made it difficult for companies to operate successfully. In Groningen, where these hubs are now mandatory, scooter usage has dropped significantly. Check, one of the remaining providers, noted that the introduction of these regulations halved the number of trips per scooter.
The permits for shared scooters in Groningen are only granted for two years, which adds to the complexity. This creates financial uncertainty for companies as they need six years to recoup their investments. The short permit duration has made it challenging for companies to secure the necessary investor confidence to continue operations.
Meanwhile, the number of mopeds in Groningen has seen a significant increase. New data shows that the number of mopeds has risen from 4,551 to 5,442 in just one year, growing faster than in any year since 2019.