New research examining the economic impact of micromobility on local economies found shared e-scooter systems created an estimated $11.3 million in additional sales annually. The study, tracked by Earnest Analytics, a leading data analytics company, included 391 food and beverage companies in 49 cities that launched e-scooter programs in summer 2018. 

The study compared data with similar cities that did not launch these programs, and used econometric methods to uncover purchasing that was caused by e-scooter rides, which would not have occurred otherwise.

“This research shows we shouldn’t ignore the positive impact of micromobility on spending at small businesses,” said Dan McCarthy, senior author of the study and assistant professor of marketing at Emory University’s Goizueta Business School. “This is especially relevant for the food and beverage sector, a significant source of jobs, which has suffered sales declines larger than many other sectors of the economy.”  

Kyeongbin Kim, first author of the study and Marketing PhD student at Goizueta Business School adds, “Markets with more favorable policies towards shared e-scooter systems could be giving themselves a potential boost towards economic recovery as e-scooter programs generate additional sales tax revenues and jobs that would not have been realized otherwise.”

The study uncovered e-scooter usage may have generated these positive economic spillovers in a similar way to how consumers make impulse purchases at grocery stores – its effects are larger for businesses where the consumption event happens more quickly, and for businesses selling at lower prices.

Across the cities studied with e-scooter programs, total sales in the food and beverage category increased by an estimated $179 per available e-scooter from food and beverage companies over a one-year period after e-scooters were first introduced into those cities.

“Since our economic impact estimates are based on a subset of food and beverage companies rather than the entire food and beverage sector, and 49 cities allowing e-scooter entry rather than every city that did so, the actual total impact could be larger,” said McCarthy. “If, for instance, subsequent research confirmed a similar level of uptick across all food and beverage companies in all markets allowing e-scooters to operate, the overall full-year economic impact could be closer to $200 million.”

"Shared scooters provide a low-carbon transportation alternative to cars, with many built-in economic benefits: expanded access to jobs and other destinations when combined with transit, improved affordable options for low-income travelers through reduced-fare programs, and reduced carbon emissions,” said Calvin Thigpen, Director of Policy Research at Lime. “What's so interesting about this new study is that it shows that scooters create further economic benefits, as locals and tourists alike scooter around American cities and spend more at restaurants. This provides a tangible benefit to food and beverage businesses as well as to cities through increased sales tax revenues."