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As a global trend for e-scooters and dockless bicycles continue to surge, major players are racing to take advantage of the fast-growing market.
Middle Eastern ride-hailing company, Careem, is the latest big business to enter the micro-mobility space with the acquisition of UAE-based company, Cyacle, for an undisclosed amount.
Launched in December 2014, Cyacle is a fully-automated docked bikeshare service currently operating in Abu Dhabi with over 72,000 users.
The app will initially be available initially as a standalone app that can be accessed via the main Careem app.
According to CB Insights Research, investors have poured more than $5.7 billion into micro-mobility startups worldwide over the last four years. Although it is still in its early stages in MENA, CB Insights expects it to reach $300 billion to $500 billion by 2030 in China, Europe and the US.
“Many journeys are relatively short in distance, including those to and from transportation hubs such as metro and bus stations, so increasing bicycle availability and expanding routes will transform how people commute, as well as offering micro-mobility solutions for short-distance trips,” said Careem’s CXO and co-founder Magnus Olsson.
The new acquisition is part of Careem’s overall platform strategy to offer complete mobility solutions, affordable transportation and first and last-mile mobility. Careem plans to bring micro-mobility to more cities throughout the region over the next 12 months.
In April, the Dubai-based company debuted an on-demand roadside assistance service in Dubai, with plans to expand the service to others areas across the UAE.
Established in July 2012, Careem operates in 120 cities across 15 countries and has created more than a million job opportunities in the region. It was recently acquired by ride-hailing app Uber in a $3.1 billion deal, marking the biggest tech deal the Middle East has seen so far.