Paytech Weekend read World-Region-Country

How Are Paytechs Impacting the Growing e-Bike Market?

The growing concern surrounding climate change and sustainability across the world has led many to adjust their means of travel, with cycling being one of the most popular environmentally friendly ways to travel. However, in order for e-bikes to run smoothly, the payments system must be extremely efficient. This in turn will encourage people to use the eco-friendly means of transport. Here we examine how different regions around the world are adjusting to this.

By volume, the Asia Pacific region made up roughly 88 per cent of the market in 2020. By value, Europe holds 39 per cent of the market share, led by Germany, France, and Italy. Europe’s large share despite the high volume sold in Asia likely points not only to the growing popularity of e-bike commuting but to the massive increase of eMTBs in European countries.

Middle East and Africa

Although the Greater Middle East boasts a young and digitally savvy population—with smartphone penetration reaching 80 to 90 per cent in leading markets—the region has remained heavily dependent on cash. Only about a third of retail transactions are conducted electronically, due to factors such as underdeveloped digital-payments infrastructure and services, underbanked consumer and merchant segments, and a cultural bias toward cash.

Increasing payment options, therefore, is a necessity to allow more people to participate in the benefits of affordable electric mobility, and unleash urban potential via financial inclusion. This sparked FENIX, the electric mobility and deliveries platform, to create an inclusive payments service, FENIX Pay.

FENIX Pay provides users with a range of options to pay for FENIX services including via credit cards, debit cards, mobile/telco credit, Apple Pay, and local digital wallets.

Commenting on the impact of FENIX Pay, Jaideep Dhanoa, Co-Founder and CEO of FENIX says, “Mobility is a means-to-an-end and an enabler or limiter to get where you need to be, to do what you’re meant to do, to reach your potential. When we started FENIX we focused on mobility as the first domain where we can make a difference. It has quickly become apparent that financial inclusion is another major limiter in today’s economy. The Middle East is a diverse region with large income distributions. There are many people who could benefit from and want to use our e-mobility and delivery services but haven’t been able to only because they don’t have a credit card. Mobile payments in the region are failing these segments. So we have started building our own payments platform called FENIX Pay so we can remove this limiter and provide financial freedom for anyone to pay how they like.”

To serve underbanked customers, the company focused on where such consumers already have a stored value balance and identified direct carrier billing with telecom operators as an ideal channel. In the UAE and in Turkey anyone with a smartphone will be able to pay for FENIX services via live integrations with the two leading UAE national telecom providers – Etisalat and Du – and three leading Turkey telecom providers – Turkcell, Vodafone and Türk Telekom. Later this quarter, FENIX Pay will also be integrated with leading telecom operators Mobily in the Kingdom of Saudi Arabia and with Batelco in Bahrain. The payments platform also includes seamless payments with Apple Pay across the region.

IQ Sayed, Co-Founder and CTO of FENIX says: “Innovation to create impact is in our DNA. We realised that in order to achieve our mission, we needed to address the payments barrier in our region. As the only vertically integrated electric mobility and deliveries platform focused on the Middle East, we feel an obligation to invest in local payments so all our consumers can participate in the benefits of affordable and convenient mobility. We have some of the most compelling use-cases for inclusive multi-channel payments. There is a lot that still needs to be done but we are very excited to be leading this effort in our region and exploring how we can bring more financial inclusion with FENIX Pay.”

Europe

With the global e-bike market growing at an extremely steady pace and scheduled to hit $120billion by 2030 according to Vision Research Reports, employees from all industries are seeing how they can implement the eco-friendly method of transport. With this in mind HumanForest, a London-based company providing sustainable and affordable shared e-bikes across London, has announced a new partnership with food delivery unicorn Deliveroo, the food delivery service, to offer delivery riders access to sustainable transport in the UK capital.

The link-up boosts HumanForest’s vision to transform the way that people and businesses can access clean, green shared mobility solutions.

A new, innovative payment model has created the most affordable and accessible e-bike solution in the capital for delivery riders and last-mile delivery. Deliveroo riders will have access to the green e-bike platform by purchasing bundles of minutes as and when they need them, for making deliveries or for leisure, tackling the upfront costs of privately purchasing electric bikes.

Throughout lockdown, home delivery services have seen a spike in popularity. It is hoped the partnership will allow more businesses and consumers to make sustainable trips around the capital, offering a truly green mobility solution.

Laura Elms, Head of Sales and Partnerships at HumanForest, said: “This is a huge endorsement for HumanForest and a really important moment for Deliveroo riders. This partnership has been designed with delivery riders front and centre of mind, making access to affordable e-bikes a reality for them. The partnership will offer a sustainable and accessible platform which supports delivery riders whilst also bolstering our vision of a cleaner, greener world for all. We’re delighted to be working with Deliveroo and look forward to helping them achieve their own sustainability goals.”

Asia

Deliveroo Singapore has also made an announcement, stating it will sponsor up to 50 per cent of the cost of a new power-assisted bicycle (PAB) to ease the financial burden of 200 riders looking to upgrade their vehicles. The programme will enable walkers and cyclists to convert their mode of delivery to electric bicycles so that they can increase their earnings by making more deliveries in a shorter time.

The programme is in line with Singapore’s vision to have all vehicles run on cleaner energy by 2040, said Deliveroo in its statement.

Sarah Tan, general manager of Deliveroo Singapore, said: “Depending on the model and specifications, vehicles such as power-assisted bicycles can be expensive and cost about $700 to $1,800. We hope that with this new subsidy scheme, we are able to help our Deliveroo riders ease their financial burden and earn more within the hour through more deliveries fulfilled.”

When looking at the e-bike market in Asia as a whole, the number of electric-bike makers in China underscores the sector’s potential. According to Bloomberg, there were around 51,600 e-bike manufacturers registered in China in 2020, up 83 per cent from 2019, government data show. And 223,000 companies were in businesses related to the electric-bike industry as of February 2021.

Author

  • Francis is a junior journalist with a BA in Classical Civilization, he has a specialist interest in North and South America.

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