Micro-mobility and corporate travel: Will it work for your organisation?

Most city dwellers have by now seen the increase in popularity of shared bikes and scooters popping up around their city — and if not, they will soon enough. Micro-mobility refers to this range of small, lightweight vehicles operating at speeds typically lower than 15mph (25km/h).

With urbanisation on the rise, the majority of trips people take fall within the category of micro-mobility and thus are prime candidates for bike and scooter usage. Micro-mobility is a part of the urban ecosystem that can provide the missing link between personal vehicle use and public transit, as well as help reduce congestion and improve air quality.

In this article, we take a look at the rise of micro-mobility and the pros and cons of using it for corporate travel:

The rise of micro-mobility

Projections show that by 2050, an additional 2.5B people will reside in urban areas globally. With most cities already dealing with dangerous levels of pollution and gridlocked streets, micromobility could solve a handful of problems.

Among many use cases, micro-mobility services increase access to public transportation, reduce the number of cars on the road, lower our environmental footprint, and provide convenient methods of transportation for short trips — all while being cost-effective.

Electric scooters, for example, can be more efficient than other modes of transport. One kilowatt hour of energy can only get a petrol-powered car to travel 0.8 miles, an electric vehicle can travel 4.1 miles under the same conditions. However, an electric scooter can travel 82.8 miles using the same amount of energy.

Furthermore, renting a bike or scooter is often much cheaper than owning a car or taking a taxi to a destination. Moreover, they take up less space.

Micro-mobility and corporate travel policy

Employees commuting or on business travel are becoming increasingly likely to vary the modes of transport they take and avail of micro-mobility in their daily lives. Renting a bike if the weather is fine, ordering a taxi via an app when it’s raining or taking public transport if it’s convenient; all fall under the umbrella of travel flexibility that is becoming a key factor in well-being at work.

Micro-mobility contributes to the well-being of employees and business travellers in their daily lives by giving them comfort, safety and flexibility. Even before the pandemic, 88% of them were already in favour of their companies including mobility as a way of promoting well-being.

It also helps to negate some societal and ecological challenges in Europe. According to figures produced by the European Commission, 40% of CO2 emissions come from urban mobility. CSR actions that enhance a company’s brand image while making it a stakeholder in change include committing to soft mobility, converting company cars to electric vehicles and adopting a mobility package.

Challenges

Unlike taxis and ride-hailing, modes of transport such as bicycles and scooters are not always permitted under corporate travel policies due to safety and insurance.

The issue of safety is the final obstacle to the incorporation of micro-mobility into travel policies. Insurance companies are reluctant to cover these modes of travel, so they represent a risk for employers. Employers also have a duty of care to their employees. However, micro-mobility transport now offers several safety guarantees:

• Track journeys with self-service bicycles or scooters
• Helmets have been made mandatory and speed limits have been imposed by legislation. In Madrid for example, the use of electric scooters is subject to legal frameworks (helmets required, ban on riding on cycle paths, etc.)
• Disinfecting of equipment and compliance with hygiene measures carried out by a trusted partner

These criteria could quickly convince insurance companies and consequently travel managers to incorporate micro-mobility into their travel policies.