In 2030, the global short-distance travel market will reach US$300-500 billion
Will the short-distance travel market be prosperous or depressed? So far, its investment has reached billions of dollars.
Do the various arguments about short-distance travel cover up their potential in real life? This business model has recently attracted a lot of attention as people's interest increases and new investment funds flood into the field. However, the issue of the final size and scope of the short-haul travel market has gradually emerged.
Since 2015, investors have invested more than $5.7 billion in short-haul start-ups, with more than 85% targeting China. This market has attracted a large customer base and is about two to three times faster than the car or network car.
Short-distance travel is seen as “intuitive mobility” in a busy traffic environment that allows people to experience the thrill of this rush. It's really simple: people feel rejuvenated, as if they were back to their first bike or scooter.
Second, the economic effects of short trips are largely beneficial to business people. For example, the current cost of purchasing an electric scooter is about $400 compared to the thousands of dollars required to purchase a car. In just four months, an electric scooter can recover the cost.
Short-distance behavior so far has eased some of the pressure on urban residents; faster average speeds, shorter waiting times and shorter parking times, lower acquisition costs and more convenient travel conditions for outdoor activities.
So how big is this market? In theory, short-distance travel can complete passengers less than 8 kilometers, which is equivalent to 50% to 60% of the total mileage of today's China, EU and US passengers. For example, about 60% of car trips are less than 8 kilometers, they can benefit from short trips; this can also cover about 20% of public transport trips (except for narrowing the gap between the first and last kilometers) and those Travel is done by private bicycles, mopeds, scooters or people walking.
Short-distance travel at this stage can seamlessly link the roads of urban transportation. Therefore, our basic estimates for the short-distance travel market in China, the European Union and the United States are: To reach $300 billion to $500 billion by 2030. In the long run, this is equivalent to about a quarter of our projected global autonomous driving market potential in 2030. Short trips can create more opportunities to use short trips. The city can also install an intermodal hub to make it easier to communicate between short-distance travel and public transport. Short-distance travel may also subvert traditional industries. Whether it is really destructive to mention the destructive power depends to a large extent on the city's response to its services. Although the industry wants the city government to see short-haul travel as an effective way to solve congestion and pollution problems, and provides consumers with another option at the time of congestion, the city's reaction is to see the negative side. But in fact, the latter has some factual evidence that has surfaced. Therefore, in addition to doing their own business, short-haul travel operators may have to step up efforts to improve the industry in major urban areas.