Loop SAL, a company providing electric scooter shared fleet services and technology, launched the first commercial electric scooter fleet in the Middle East and Africa region. Loop SAL has also received an investment of $1.3 million by its main investor, Berytech Fund II. Loop SAL has launched a fleet of shared electric scooter in Beirut, Lebanon. Initially, the fleet consists of 15 scooters which will be increased by additional 55 scooters by July 2017.
Loop SAL is planning to start commercial fleet trials in other cities of the region which will be followed by the launch of electric scooters.
Global electric scooter market is anticipated to reach the value of more than $8000 million by the end of 2017, according to the report by Future Market Insights (FMI).
Better Fuel Efficiency Adds to the Growth of Electric Scooters Market
Compared to the conventional scooters, electric scooters tend to be more fuel efficient. The percentage of energy extracted by vehicle from fuel to sustain and initiate movement is less than 30%, this means 70% energy from fuel is wasted due to engine loss, inertia, heat and sound. While electric scooters consume more than 80% fuel energy owing to the process of converting chemical energy in batteries to electrical energy.
Government Offers Subsidies and Incentives to boost the Sales of Electric Scooters
In order to bring down the air pollution levels, the government in several countries are taking various measures by implementing certain rules on usage of conventional scooters and several other regulations. The government is also offering subsidies and incentives to the buyer and owner of electric scooters.
According to the report, the government in China is offering a subsidy of $600 to $1000 on every purchase of electric scooter by the customer, the subsidy offered depends on the battery pack. Similarly, the government in U.S. have allocated the budget of $2.4 billion for the development of electric vehicles. U.S. administration is also offering incentives in form of tax credits amounting to $7,500 based on the size of the battery pack.
The Need for Quick and Reliable Charging Stations
Supply of quick and reliable charging stations can help with the growth of the electric scooter market. In terms of refueling the vehicle, the conventional vehicle offers higher flexibility as it takes a few minutes to refuel the vehicle. Whereas in the case of an electric vehicle it takes more than a couple of hours to recharge the battery. Hence, with the increase in a number of charging stations, it will be possible to charge electric scooters by direct current, bringing down the charging time by an hour.
Loop SAL also plans to establish business including fleet management, telematics, market development and logistics in Lebanon and other surrounding regions.
