How do sharing economy platforms in the sector of mobility compete with each other? The case of shared e-scooters in Brussels

Details

Supervisors

Johnen, Johannes

Faculty

Faculté des sciences économiques, sociales, politiques et de communication

Degree label

Master [120] en sciences économiques, orientation générale

Abstract

The market of e-scooters started in 2017 in the US and rapidly arrived in Europe. This market rapidly gained popularity as it seen as a solution to urban mobility problems of pollution and congestion. The Brussels market has been a strategical place for e-scooters companies to flourish in Europe. Nine companies where competing at some point. However, only two firms survived and are still active on today’s market. The competition is therefore interesting to analyze. We observe in this thesis that first of all, firms improved their economics to reach profitability and stay on the market. One of the major improvements was therefore a better lifespan. Furthermore, we observe in this thesis that companies acquire market power to pursue a “Bargain followed by rip-off” strategy. To do so, firms exploit consumer inertia. Moreover, they could later on increase their profit through price discrimination. Then, we notice that the market presents several barriers to entry and some companies adopt strategies of mergers and acquisition to grow on the market. After that, we consider the different features of platforms which may impact competition. This is notably the case of network effects, multihoming and compatibility. We conclude that the market is transitioning to a more integrated solution called “Mobility as a Service”. Finally, we explain how competition can limit the environmental impact of the sector. However, it is not sufficient yet and a public intervention might therefore be necessary.