[New Wave] The Bicycle Boom Brought by COVID-19

The novel coronavirus disease (COVID-19) has changed many aspects of our mobility and lifestyle. Among these changes, the global bicycle boom stands out. People who felt uneasy using public transportation such as buses or subways have switched to bicycles, which they can use safely in open outdoor spaces.

Bicycles are also very popular in Korea. Samchuly Bicycle, a leading Korean bicycle manufacturer, saw its sales increase by 64% in the second quarter compared to the same period last year, while Alton grew by 27% during the same period. COVID-19 has effectively rescued the bicycle industry, which had been in a growth stagnation phase.

Electric bicycles and electric kickboard sharing services are also growing alongside COVID-19. These personal mobility services use electricity as their power source, allowing users to travel longer distances more easily than with regular bicycles. In Korea’s hilly terrain, these have attracted attention as effective means of transportation.

Kakao Mobility’s electric bicycle sharing service, Kakao T Bike, has recently expanded its service areas and significantly increased the number of units in operation. After launching in March last year in Seongnam City, Gyeonggi Province, and Yeonsu District, Incheon, the service expanded to Jeonju City, Jeollabuk-do, and Ulsan Metropolitan City, and recently started in Songpa District, Seoul; Seo District, Incheon; Hanam City, Gyeonggi Province; and Ansan City. The number of units in operation has also grown substantially from the initial 1,000 to 6,000 units.

Electric kickboard sharing services are also booming. There are more than a dozen service providers domestically and internationally, including Kickgoing, Ssingssing, Swing, Alpaca, Lime, and Beam. As of August 31, a staggering 36,000 electric kickboards are in service in Seoul alone. The amendment to the Road Traffic Act passed in May this year, allowing electric kickboards to use bicycle lanes, along with services utilizing regulatory sandboxes, further enhances their growth potential.

Data shows that these personal mobility services have established themselves as important means for people’s commuting and leisure travel. Looking at the operation patterns of Kakao T Bike, two peaks appear on weekdays between 8 a.m. and 9 a.m. and between 6 p.m. and 7 p.m., which correspond to typical office commuting hours. Electric bicycle sharing services have become key transportation options, replacing buses, subways, or private cars for many commuters.

As COVID-19 continues, bicycles and personal mobility services will expand further. However, to ensure they become more convenient and safe transportation options that form a pillar of our transportation system, several preparations are necessary.

First, road infrastructure that allows smooth travel for bicycles and personal mobility services must be expanded. Except for new towns and some urban areas, there are not many places with fully equipped bicycle lanes. Moreover, some roads are poorly maintained, making travel practically difficult. In line with the government’s actively promoted Green New Deal policy, generous investment should be made to expand and maintain bicycle lanes.

Meanwhile, an insurance system to guarantee safe travel must also be established. Insurance products for personal mobility services are still insufficient compared to general automobile insurance. Protecting citizens’ rights requires the attention and efforts of platform companies, the insurance industry, manufacturers, as well as government and local authorities. Additionally, guidelines or campaigns for safe operation and parking are necessary.

Finally, policies are needed for those hesitant to use the services due to cost burdens. Even now, various forms of direct and indirect subsidies are provided for public transportation such as buses and subways, as well as bicycle services operated by local governments. Personal mobility services structurally find it difficult to make profits due to device depreciation and operating costs. Since these services have become alternative transportation means responsible for public mobility, subsidy policies should be considered at least once.

Jaeho Lee, Director of Digital Economy Research Institute, Kakao Mobility