E-scooter rentals reshape urban micromobility (part one)

January 30, 2020 / 4 min read

Since 2017, electric scooters (e-scooters) have gone from novelty to rapidly proliferating urban accoutrement across the United States. In at least 65 cities, people are using smartphones to rent e-scooters from start-ups and established ridesharing companies looking to create a new market for “micromobility”—the short trips that would normally entail a taxi or walk.¹ In 2018, riders took some 38.5 million trips on rentable e-scooters in cities across the United States.²

But e-scooters, which can often reach speeds of 15 to 20 miles per hour, can come with significant risks for riders.³ Varying regulations, potential for injuries, and cyberattacks may also contribute to such risks—supporting the potential need for new personal and commercial lines insurance to address e-scooter related exposures.

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A regulatory gray area

The regulatory regime around e-scooter rental services varies from expressly addressing such services in some cities to nonexistent in others. Several U.S. cities have either banned e-scooters or taken steps to restrict their use, particularly at night.⁴ Others have welcomed them enthusiastically.⁵ Some e-scooter rental companies have placed rental e-scooters in cities where the regulations governing their use can be considered unclear.⁶ Riders themselves seem unsure of the rules.⁷

Risky rides

E-scooter rental businesses have been on the road for about two years, and data about their safety is now trickling in. A study by researchers at the University of California found “injuries associated with electric scooter use were common,” outpacing bicycling and pedestrian injuries over the same time frame.⁸ The study also suggested that “low rates of adherence to existing regulations around rider age and low rates of helmet use” contributed to the injuries.

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In another study conducted by the City of Austin, half of e-scooter riders who were injured on the vehicle had a “severe” injury, and the city found only one of those injured using an e-scooter was actually wearing a helmet.⁹

Not every city has had the same experience, however. Portland, Oregon, reported in 2018 that scooter riders were less prone to injury than cyclists over the same time period.¹⁰ Other cities initially saw a spike in emergency room visits when e-scooter rental services were launched, only to have those numbers subside after riders became more accustomed to the vehicles.¹¹

Cyber threats

While road risks are the most prominent threats to e-scooter riders, cybersecurity researchers have revealed another potential threat: hacking. Like autonomous vehicles, e-scooters can be remotely hijacked to give attackers access to braking and throttle controls as well as the audio messages broadcast by some models.^12,13 It’s little wonder why some cities that permit e-scooter rental operations require those companies to carry cyber insurance.^14,15

At Verisk, we’re committed to continuing the conversation around micromobility, e-scooters, and new insurance models to enable these trends to thrive. We’re working on solutions to address the potential gaps in the market for e-scooter riders. Please feel free to share your thoughts with me at Sandee.Perfeto@verisk.com. And stay tuned for part two in this series, where we address the insurance implications of the e-scooter rental boom.

2018 E-Scooter Findings Report, Portland Bureau of Transportation, 2018, https://www.portlandoregon.gov/transportation/article/709719, accessed on January 6, 2020.
84 Million Trips Taken on Shared Bikes and Scooters Across the U.S. in 2018, National Association of City Transportation Officials, April 17, 2019, https://nacto.org/2019/04/17/84-million-trips-on-shared-bikes-and-scooters/, accessed on January 6, 2020.
Ryan Felton, “Safety Glitch Lets Some Shared Electric Scooters Exceed Local Speed Limits,” Consumer Reports, June 7, 2019, https://www.consumerreports.org/product-safety/safety-glitch-lets-some-electric-scooters-exceed-local-speed-limits/, accessed January 6, 2020.
Ed Leefeldt, “Electric Scooters are Igniting New Laws, Liability Concerns and Even ‘Scooter Rage’” CBS News, July 2, 2019, https://www.cbsnews.com/news/electric-scooter-backlash-leads-to-new-laws-and-scooter-rage-july-2019/, accessed on January 6, 2020.
Laws applicable to electric scooters in Portland, Portland Bureau of Transportation, https://www.portlandoregon.gov/transportation/article/689878, accessed on January 6, 2020.
Pattrik Perez, “Dockless e-scooter companies operating in Austin without permission,” KVUE, April 16, 2018, https://www.kvue.com/article/news/local/dockless-e-scooter-companies-operating-in-austin-without-permission/269-540397762, accessed on January 6, 2020.
Ryan Felton, “8 Deaths Now Tied to E-Scooters,” Consumer Reports, June 3, 2019, https://www.consumerreports.org/product-safety/deaths-tied-to-e-scooters/, accessed on January 6, 2020.
Tarak Trivedi, et al., “Injuries Associated with Standing Electric Scooter Use,” JAMA Open Network, January 25, 2019, https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2722574?guestAccessKey=c8d43986-1131-4af7-b3bc-a9f9415cd3b3, accessed January 6, 2020.
Dockless Electric Scooter-Related Injuries Study, Austin Public Health, April 2019, https://www.austintexas.gov/sites/default/files/files/Health/Epidemiology/APH_Dockless_Electric_Scooter_Study_5-2-19.pdf, accessed on January 6, 2020.
2018 E-Scooter Findings Report, Portland Bureau of Transportation, 2018, https://www.portlandoregon.gov/transportation/article/709719, accessed on January 6, 2020.
Heather Janssen, “Lessons from Tempe: City Explains E-Scooter Regulations,” KOLD News 13, September 9, 2019, https://www.kold.com/2019/09/10/lessons-tempe-city-explains-e-scooter-regulations/, accessed on January 6, 2020.
Rani Idan, “Don’t Give Me a Brake—Xiaomi Scooter Hack Enables Dangerous Accelerations and Stops for Unsuspecting Riders,” Zimperium, February 12, 2019, https://blog.zimperium.com/dont-give-me-a-brake-xiaomi-scooter-hack-enables-dangerous-accelerations-and-stops-for-unsuspecting-riders/, accessed on January 6, 2020.
Alan Martin, “Somebody Has Hacked Lime Scooters to Be Rude,” Inquirer, April 26, 2019, https://www.theinquirer.net/inquirer/news/3074695/somebody-has-hacked-lime-scooters-to-be-rude, accessed on January 6, 2020.
New Mobility-Shared Electric Scooters, Portland Bureau of Transportation, July 23, 2018, https://www.portlandoregon.gov/citycode/article/690212, accessed on January 6, 2020.
SFMTA Powered Scooter Share Program Permit Application, San Francisco Municipal Transportation Agency, June 1, 2018, https://www.sfmta.com/sites/default/files/reports-and-documents/2018/05/powered_scooter_share_program_permit_application.pdf, accessed on January 6, 2020.