Jason Parrish, senior director of product management at e-mobility company Lime, on the new LimeGlider e-bike in Dubai. Pawan Singh / The National
Jason Parrish, senior director of product management at e-mobility company Lime, on the new LimeGlider e-bike in Dubai. Pawan Singh / The National
Jason Parrish, senior director of product management at e-mobility company Lime, on the new LimeGlider e-bike in Dubai. Pawan Singh / The National
Jason Parrish, senior director of product management at e-mobility company Lime, on the new LimeGlider e-bike in Dubai. Pawan Singh / The National

Lime may soon launch no-pedal e-bikes in Dubai amid micromobility push


Alvin R Cabral
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US e-mobility company Lime is considering launching its new pedal-less electric bicycle service in Dubai, as it seeks to address the growing demand for micromobility in the emirate amid a surge in its population.

The San Francisco-based Lime, which offers e-scooter services across Dubai and Abu Dhabi with a fleet of 1,200 bikes, could add the LimeGlider e-bikes to its Dubai platform by 2025, it said on Tuesday. That would make the emirate the third city in which the service will be piloted, joining Seattle and Zurich, where it is currently being tested.

"The vehicle will be launching in a number of global markets by the summer [of 2025] and we're out talking to cities like Dubai about the possibility of introducing it ... we're working hard to bring it to more markets," Jason Parrish, senior director for product management at Lime, told The National. Mr Parrish was speaking at a LimeGlider demonstration. The company has no set timeline for its launch in the emirate.

Pedal-less e-bikes are not new, but they are not in the mainstream ride-sharing industry. They are, however, a viable alternative that can contribute to sustainability goals – one of the UAE's main economic and societal objectives – and potentially reduce traffic.

Infrastructure also plays a key role, and Dubai already has a number of dedicated cycling lanes, Hadi Karam, Lime's regional director for Europe, the Middle East and Africa, told The National. "This should continue if we want to really replace more and more cars, and convert people to these types of micromobility solutions with the growth for its demand and population," he said.

Ride pricing will be "in line" with Lime's current e-scooter rates, Mr Parrish said. Rates are provided on the Lime app before a ride is started; an initial fee of Dh3.20 is charged to start the e-scooter and every subsequent minute costs Dh1.20.

A test-ride of the new LimeGlider e-bike during the demo at the Sheikh Mohammed bin Rashid Blvd in Downtown Dubai in Dubai. Pawan Singh / The National
A test-ride of the new LimeGlider e-bike during the demo at the Sheikh Mohammed bin Rashid Blvd in Downtown Dubai in Dubai. Pawan Singh / The National

The LimeGlider has a range of about 70km, or roughly about 20 trips on average. Its top speed is typically 25kph, but it can be configured depending on market requirements, Mr Parrish said. Its centre of gravity is designed to provide the right balance and prevent it from tipping forward, he said.

Mr Parrish declined to reveal how much was invested in developing the LimeGlider, but confirmed that it was developed "fully in-house". While Dubai would be the launchpad in the UAE for the LimeGlider, the company is also considering launching the service in other emirates, as long as it "really matches [their] needs", he said. "We're open for discussions; it's in the early stages ... we could potentially grow the business and introduce more vehicles in the region."

Launching the LimeGlider is expected to anchor a financially successful past two years for the company, Mr Karam said. The company recorded more than 150 million rides that generated $600 million worth of bookings in 2023, a record year for the company, boosting its earnings before interest, taxes, depreciation and amortisation by more than sixfold annually to more than $90 million, according to its website.

Globally, Lime registered 156 million trips – roughly five trips per second, and in the UAE, the company exceeded the one million trips mark last year, Mr Karam said. "There is a lot of demand [in the UAE that has been] really increasing exponentially over the last three years," he said. "We are brainstorming and working with authorities to see how best to meet this increasing demand and growth."

Mr Karam did not provide any projections for 2024, "but the results to date are very encouraging and on the same growth path". Lime is also calling for more discipline from micromobility riders, amid safety concerns across Dubai. In September, e-scooters were among the 3,779 vehicles confiscated by Dubai Police as part of a campaign to improve road safety, while in August the management of Jumeirah Beach Residence banned the use of e-scooters and e-bikes in parts of the community.

UAE road safety experts last year called for better education and tighter regulations to help clamp down on reckless e-scooter riders who put lives at risk by flouting traffic rules. "We do believe strongly that education is the best way to change behaviour," Mr Karam said.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

The specs

Engine: 4-litre twin-turbo V8

Transmission: eight-speed PDK

Power: 630bhp

Torque: 820Nm

Price: Dh683,200

On sale: now

Updated: November 05, 2024, 4:10 PM