Digital manufacturing could cut micromobility costs in half, says McKinsey
30 August 2025
by William Thorpe
Shared micromobility providers could cut fulfilment costs by more than 50 percent and move closer to sustainable profitability by adopting digital manufacturing and operations platforms, according to new research from McKinsey.
The consultancy argues that while ridership continues to grow and cities invest in infrastructure, operators remain constrained by high costs in vehicle production and fragmented supply chains.
“The culprit is usually a high-cost base resulting from complex supply chains and ineffective production processes,” the authors note, adding that these inefficiencies have been a central factor behind persistent losses and bankruptcies.
Demand, however, remains strong. In the US, shared micromobility trips grew by an average of 10 percent annually between 2018 and 2023, with 2024 likely setting a record.
In Europe, passenger kilometres on bicycles–both private and shared–increased by 5 percent between 2017 and 2023, largely from longer trips. McKinsey estimates that the global value pool for the sector could double or even triple to reach US$340 billion by 2030, led by Europe at US$140 billion, China at US$80 billion, and the US at US$35 billion.
The analysis points to digital manufacturing platforms as a way to relieve cost pressures. By bundling orders from multiple micromobility companies, these platforms connect operators with a broad supplier base and provide access to warehousing, delivery, and after-sales services.
“The core of this approach is matching companies with the right partners based on capability, geography, and availability so companies can focus on what they do best while still benefiting from economies of scale,” McKinsey explains.
For operators, this model promises faster scaling and improved unit economics. One hardware company, for example, “used a digital manufacturing platform to scale in the United States without leasing warehouses or building additional logistics operations.”
Manufacturers benefit from steadier order flows and better use of production lines, regulators gain opportunities to introduce technical standards across the sector, and investors can direct capital more efficiently.
According to McKinsey, digital manufacturing platforms “have the potential to reduce fulfillment costs by more than 50 percent while helping micromobility providers react more quickly to market demands.” With funding volumes expected to remain scarce, the report concludes, this approach may offer operators the clearest path yet to financial stability and long-term survival.
Image: Karen Vardanian | Dreamstime.com
