Closing the loop: A holistic approach to shared micromobility fleet development

As cities around the world continue to face rapid urbanization and changing demographics, the need for innovative urban transportation solutions has become more urgent. Shared micromobility systems, including bicycle and scooter-sharing programs, are emerging as strong contenders in addressing these challenges. But what factors influence the growth and sustainability of these fleets?

Researchers at the University of Natural Resources and Life Sciences, Vienna, and Institut Teknologi Sumatera, Indonesia, set out to explore the dynamics behind shared micromobility fleet development. By utilizing a system dynamics modeling approach, they examined how fleet size, user demand, regulatory policies, and economic factors interact to shape the success of these systems. Their findings suggest that financial incentives, such as fee reductions and government subsidies, can significantly increase user adoption and profitability, while operational fees need careful management to maintain service appeal. This research provides valuable insights for policymakers and operators looking to optimize micromobility systems and promote more sustainable urban transportation.

They published their study on 13 November 2024, in Communications in Transportation Research.

“We developed a comprehensive system dynamics model to investigate the intricate growth and management dynamics of shared micromobility fleets, considering key factors such as fleet size, user demand, regulatory frameworks, and financial incentives. Our model uses simulations to test various policy scenarios—ranging from fee reductions and government subsidies to increased operational fees—to offer strategic insights for optimizing fleet sustainability and urban mobility systems,” explains Shahnaz Nabila Fuady, researcher at the Institute for Transport Studies, University of Natural Resources and Life Sciences, Vienna.

Policy measures and their influence on fleet sustainability

The study highlights the powerful impact of financial incentives on shared micromobility systems. For instance, policies that reduce user fees or introduce government subsidies lead to significant increases in user adoption and fleet profitability. These measures were found to improve both access and service attractiveness, fostering greater demand across urban populations. In contrast, policies that increase operational fees require a delicate balance, as they can negatively impact user demand and threaten the financial viability of fleet operators.

“Striking the right balance between operational costs and service attractiveness is crucial. We found that fee reductions attract users, while stricter fleet regulations and higher fees can limit service flexibility, particularly in highly regulated environments,” Fuady adds.

The role of regulations in fleet management

The research also demonstrates that public engagement and regulatory frameworks play a significant role in shaping micromobility systems. Political pressure to regulate often arises from negative consequences such as traffic violations or public dissatisfaction with micromobility services. This pressure, in turn, leads to fleet size restrictions, creating a balancing act between service accessibility and regulatory control.

“We observed that the imposition of strict regulations, such as fleet caps or operational limits, can curb service expansion, while policies that support operational flexibility, such as subsidies, drive both user growth and system sustainability. It’s essential for policymakers to consider these dynamics when designing future urban transport strategies,” says Fuady.

Sensitivity analysis reveals critical factors for success

The study conducted sensitivity and uncertainty analyses to identify the most critical parameters for managing fleet growth effectively. Variables such as fleet size elasticity, user demand patterns, and financial reinvestment strategies emerged as key elements influencing the long-term success of shared micromobility systems.

“Our sensitivity analysis underscores the importance of proactive fleet management and financial planning. For instance, increasing the reinvestment of revenue into vehicle acquisition significantly boosts system capacity, while neglecting such investments can lead to stagnation or decline,” Fuady notes.

This research provides actionable insights for both policymakers and micromobility operators, offering a pathway to more sustainable, efficient, and user-friendly urban transport solutions. The findings serve as a crucial guide for cities looking to integrate shared micromobility services into their broader transportation ecosystems.

The study is part of a collaborative effort supported by the FFG/BMK Endowed Professor DAVeMoS program and the Indonesia-Austria Scholarship Program (IASP), aimed at advancing urban mobility research and developing practical solutions for future transport challenges.

The above research is published in Communications in Transportation Research (COMMTR), which is a fully open access journal co-published by Tsinghua University Press and Elsevier. COMMTR publishes peer-reviewed, high-quality research representing important advances of significance to emerging transport systems. COMMTR is also among the first transportation journals to make the Replication Package mandatory to facilitate researchers, practitioners, and the general public in understanding and advancing existing knowledge. At its discretion, Tsinghua University Press will pay the open access fee for all published papers from 2024 to 2025.

About Communications in Transportation Research

Communications in Transportation Research was launched in 2021, with academic support provided by Tsinghua University and China Intelligent Transportation Systems Association. The Editors-in-Chief are Professor Xiaobo Qu, a member of the Academia Europaea from Tsinghua University and Professor Shuai’an Wang from Hong Kong Polytechnic University. The journal mainly publishes high-quality, original research and review articles that are of significant importance to emerging transportation systems, aiming to become an international platform and window for showcasing and exchanging innovative achievements in transportation and related fields, to promote the exchange and development of transportation research between China and the international academic community. It has been indexed in ESCI, Ei Compendex, Scopus, DOAJ, TRID and other databases. In 2022, it was selected as a high-starting-point new journal project of the “China Science and Technology Journal Excellence Action Plan”. This year, it received the first impact factor of 12.5.  The 2023 IF is 12.5, ranking in the Top1 (1/57, Q1) among all journals in  "TRANSPORTATION" category. At its discretion, Tsinghua University Press will pay the open access fee for all published papers from 2024 to 2025.

About Tsinghua University Press

Established in 1980, as a department of Tsinghua University, Tsinghua University Press (TUP) is a leading comprehensive higher education and professional publisher in China. TUP publishes 59 journals and 41 of them are in English. There are 16 journals indexed by SCIE/ESCI. Three of them have the highest impact factor in its field. In 2022, TUP launched SciOpen. As a publishing platform of TUP, SciOpen provides free access to an online collection of journals across diverse academic disciplines and serves to meet the research needs of scientific communities. SciOpen provides end-to-end services across manuscript submission, peer review, content hosting, analytics, identity management, and expert advice to ensure each journal’s development.