5. Transpor­tation

Transportation plays an essential role in society and the economy, affecting efficiency and accessibility, all while being the key source of environmental pressure, consuming one-third of all final energy in the European Union (Klychova et al., 2020; Salvucci et al., 2019). Besides contributing to climate change, air pollution and noise, transportation takes up large strips of land, contributing to the fragmentation of habitats and urban sprawl (European Environment Agency., 2020). Current tendencies in the global transportation market revolve around privatisation, income diversification, utilising public-private partnership mechanisms, infrastructure, and agglomerated approaches to business model formation (Vinichenko, 2021). Mobility as a Service has gained more focus (Alexiou, 2021; Wolters Kluwer, 2021), indicating that PSS solutions in transportation have a window of opportunity to achieve stability in the market. (European Environment Agency., 2020). Current tendencies in the global transportation market revolve around privatisation, income diversification, utilising public-private partnership mechanisms, infrastructure, and agglomerated approaches to business model formation (Vinichenko, 2021). Mobility as a Service has gained more focus (Alexiou, 2021; Wolters Kluwer, 2021), indicating that PSS solutions in transportation have a window of opportunity to achieve stability in the market.

Transforming transportation is a crucial energy challenge in the Nordic region to achieve the climate targets set by the Nordic governments (Hansson, Karlsson, et al., 2019). The transportation sector represents a significant source of GHG emissions and other pollutants in the Nordic region, accounting for 20–35% of the countries’ total GHG emissions (Laine et al., 2018a). The European Union’s common target to reduce GHG emissions from the transport sector by at least 60% from 1990 levels by 2050 (European Commission, 2011) has been implemented in Denmark, Finland, and Sweden (as members of the EU,) with each country setting its own national and city-level GHG emission reduction goals for the transport sector (Laine et al., 2018a).

At the same time, the Nordic countries are considered pioneers in deploying sustainable energy technologies relevant to the transportation sector, with some of the Nordic capitals considered global leaders in sustainable urban transportation (e.g. Copenhagen’s bike lanes, Oslo’s electromobility and Stockholm’s public transportation) (Salvucci et al., 2019). In 2019, Finland, Sweden, Denmark, and Iceland signed a declaration to collectively work toward carbon neutrality, further increasing the attention on decarbonising the transportation sector in the Nordics (Mordor Intelligence, 2021).

Path-creation policies are predominant in the Nordic policy mixes on transportation. Policies focusing on transportation in the Nordics often rely on creating new policy pathways for mobility, but transport regime-sustaining policies are also standard due to public and market pressure. Therefore, Nordic policy actions for mobility are developed in a push-pull environment, resulting in, at times, internal paradoxes in mobility-related actions (Kotilainen et al., 2019). The Nordic region can become a frontrunner in solving climate challenges related to the transportation sector. Still, the deployment rate of low-carbon technologies and fuels needs to be accelerated for this to be achieved. Improved policy measures are essential to decarbonise areas such as freight transportation in the Nordics (Hansson, Karlsson, et al., 2019).

The Nordic countries have explored several transport innovations and are regarded as international pioneers in electric vehicles, electrified roads, and the Mobility-as-a-Service model. A transnational study on sustainable future transportation in the Nordics concluded that attention should be given to how key innovations can be commercialised and deployed. There is a need to increase the understanding of the role of new business model innovation in supporting transport innovation (Hansson, Karlsson, et al., 2019). Despite some successes, the overall picture indicates many ongoing opportunities, with initiatives often being superficial, for example, not extending beyond the coordinated provision of information. There is also evidence of weak coordination and duplication of effort, for instance, between public transport authorities (local, municipal, and regional). At the last-mile level, the emergence of e-scooters has been the most visible move in the personal mobility market over the past few years. However, the steep upward trend in e-scooter use has stalled somewhat due to increasing safety and nuisance concerns. There is a need to increase the understanding of the role of new business model innovation in supporting transport innovation

The need for sustainable mobility solutions is continually on the rise. PSS solutions can integrate sustainable principles in the use and design phase of passenger transportation (Beella et al., 2010) and new opportunities in the logistic management and supply chain configurations (Pan, 2019), as seen with the Nordic freight transport, consisting almost solely of PSS solutions.

To understand the dynamics and potential of sustainable transportation in the Nordic region, we have mapped the use of four key product types: bicycles, cars, scooters, and boats. These categories represent a broad spectrum of mobility options in Nordic countries. Each product group offers unique insights into the challenges and opportunities of implementing PSS models in the transportation sector.

We have chosen to focus our pilot projects on bicycles better to understand the business models for PSS in this category. Bicycles are particularly promising due to their existing integration into the Nordic transportation culture, low environmental impact, and suitability for short to medium distances. Furthermore, the rapid growth of bicycle PSS models in the Nordics (and the EU) underscores their potential to significantly contribute to a more sustainable transition of Nordic urban mobility. This growth trend provides a rich field for studying the dynamics of PSS implementation and scaling possibilities. Through detailed investigations in pilot projects, the aim has been to analyse and refine these models, enhancing their overall efficiency, accessibility, and environmental sustainability.

Cars remain a significant mode of transportation in the Nordic countries and a large contributor to greenhouse gas emissions. In the EU, passenger cars are responsible for 16% of total CO₂e, largely due to the use of fossil fuels in the use-phase of the vehicles (European Commission, n.d.-a). Despite more sustainable alternatives being available, such as biking and public transportation, it is likely that cars will remain a significant transportation mode in future.

The World Economic Forum and Accenture have developed a taxonomy for increased circularity in the car industry, together with 40 industry actors, in recognition of the need to increase sustainability. The taxonomy describes how PSS solutions play a key role in increased circularity across the various parts of the value chain of cars. It defines smart mobility and as-a-service solutions for vehicles and their parts to be in the upper levels of the taxonomy – assuming urban and rural implementation alike – but also recognises the role of leasing solutions in the first steps towards greater circularity (World Economic Forum, 2020). The role of PSS solutions in securing more sustainable vehicle fleets and mobility in the EU is also mentioned in the EU Circular Economy Action Plan (Nordic Council of Ministers, n.d.-a).

In some Nordic countries, with Finland as a global frontrunner, Mobility-as-a-Service (MaaS) models have been developed, where PSS solutions for cars are seamlessly integrated with other solutions such as public transport and bike-rental to provide a comprehensive model (Future Mobility Finland, n.d.). MaaS models hold the greatest potential for circularity, as reflected by the car industry’s circularity taxonomy, where the models sit at the top. However, MaaS models are notoriously difficult to develop. Developing MaaS models requires the collaboration of multiple public and private actors on many complex elements, including revenue sharing, infrastructure planning, and data integration (Swedish Energy Agency, n.d.). A recently concluded Nordic practical research effort investigated and developed recommendations for developing MaaS solutions for cross-border mobility. It highlights the criteria and next steps necessary for developing viable solutions. These are also relevant for more general implementation of MaaS models in the Nordics (Nordic Council of Ministers, 2024a) and can be supplemented by previous Nordic research and recommendations based on an analysis of drivers and barriers for MaaS in Nordic countries (Laine et al., 2018b).

Many other PSS solutions are available for passenger cars today – not least provided by new startups. These include both use-, product-, and result-oriented models that target B2B and B2C markets, with some extending to B2G. Well-established models include ride-hailing services (taxis), short-term renting, and operational leasing. Newer models are becoming more prevalent, such as peer-to-peer apps for ridesharing and carpooling, private product pooling models for car rental, and flexible pay-as-you-go sharing services (Kurpiela & Teuteberg, 2023).

The mapping of Nordic cases in this project suggests that the use-oriented PSS models, especially pooling/sharing models, are predominant and typically utilise smartphone applications for easy access. Pay-as-you-go services are also common, often combined with subscription or pre-paid minute packages to reduce costs. The newer PSS models, such as pay-as-you-go models, are primarily available in the larger cities in the Nordics, but many providers are gradually expanding their reach (Egebæk et al., 2022).

The market penetration of PSS car solutions varies across the Nordic countries with each model facing unique challenges in the various contexts. However, there is no recent comprehensive overview of the presence and success of the different PSS models across the Nordics. A 2017 report on the Nordic sharing economy identifies several empirical examples of PSS models for personal transportation with and without drivers (Skjelvik et al., 2017a). Our investigation shows that some of these models have ceased to exist, other currently existing services are not included, and others on the list have expanded in market prevalence. Generally, the market for PSS car models is likely growing as customers seek more flexible solutions for personal mobility. This includes a growing market for operational leasing of electric vehicles (EVs), with private consumers shown to be twice as likely to choose leasing over ownership when shifting to EVs (McKinsey & Company, 2023). In Sweden, for example, approx. 70% of newly registered EVs are leased rather than owned (Trafik Analys, 2022). This is a highly relevant trend, considering the EU ban on sales of new cars and vans with combustion engines from 2035 (European Commission, 2023d).

According to the literature, car-sharing services can positively and negatively impact CO₂e emissions (Ceschin, 2013a; Kuntzky et al., 2013). Car-sharing services integrating the newer and more energy-efficient vehicle fleets are particularly effective at reducing CO₂e emissions (Ahonen et al., 2023). The most impactful features of car-sharing services include a decreased need to manufacture new cars and a reduction in total vehicle kilometres travelled, which diminishes the overall environmental footprint (Chen & Kockelman, 2016; Jung & Koo, 2018). Well-implemented car-sharing services can significantly reduce both car ownership and the distance travelled by vehicles, contributing to a substantial reduction in emissions (Chan & Shaheen, 2012; Nijland & van Meerkerk, 2017).

However, the transition from private car use to shared vehicles introduces a modal shift effect, where some of the mobility previously served by private cars is replaced by other forms of transport, such as public transportation. To some extent, this effect can offset the benefits of emission reductions provided by shared cars (Amatuni et al., 2020). Conversely, some of the mobility previously managed by public transportation might be replaced by car-sharing services, potentially increasing total emissions (Arbeláez Vélez & Plepys, 2021; Jung & Koo, 2018; Skjelvik et al., 2017b).

While the modal shift effect brought on by car-sharing services introduces complexities in measuring their overall impact on emissions, connecting these findings to broader trends in transportation habits is crucial. Despite the increasing availability and utilisation of PSS models, private car ownership remains the most common practice for using passenger cars in the Nordics.

The modal shift effect brought on by car-sharing services introduces complexities in assessing their overall impact on emissions and highlights the need for a deeper analysis. Despite the increasing availability and utilisation of PSS models, private car ownership remains the predominant mode of transportation in the Nordics. Continuing to explore and understand these dynamics is vital for shaping future policies and practices that effectively balance personal mobility needs with environmental sustainability goals.

E-scooters have become increasingly prevalent as a B2C last-mile transportation solution in Nordic urban areas. Their rapid introduction has significantly impacted urban infrastructure and prompted various regulatory responses due to concerns over public safety and urban clutter. In cities like Helsinki, Oslo, Copenhagen, and Stockholm, the overwhelming presence of e-scooters has resulted in regulations such as nighttime bans and restrictions on the number of scooters permitted. This response was driven by safety issues, with numerous incidents leading to injuries and, in some cases, fatalities, prompting calls from medical professionals and public health officials for more stringent controls (Dodds, 2021a; European Commission, n.d.-e; Meaker, n.d.; YLE, 2021). PSS providers with electric scooter solutions, such as Tier, have supported limitations and regulations of the market and call for tenders to enable parking infrastructure and accessibility, as seen in Paris, London, and New York (Dodds, 2021b).

The environmental impact of e-scooters, often marketed as a green alternative to traditional urban transport methods, is also under scrutiny (Tier, n.d.). While the emissions during use phase are relatively low, the overall environmental footprint is significant. This impact primarily arises from the production, collection, and charging processes. A 2019 Life Cycle Assessment (LCA) highlighted that manufacturing accounts for about 50% of an E-scooter’s greenhouse gas emissions due to the materials used, such as aluminium and battery components. The user phase emits about 47% of the total impact, mainly due to the collection of the e-scooters in fossil-driven vehicles, charging and short lifespan of shared scooters, in some cases due to vandalism (Hollingsworth et al., 2019).

A 2019 Life Cycle Assessment (LCA) highlighted that manufacturing accounts for about 50% of an e-scooter’s greenhouse gas emissions due to the materials used, such as aluminium and battery components. Operational impacts, including the use of fossil-fuelled vehicles for scooter collection and the energy used for charging, contribute substantially to their environmental burden.

Research, such as a study from North Carolina State University in 2019, has indicated that e-scooters produce more emissions per passenger mile than buses, e-bicycles, and traditional bicycles. The e-scooters are, however, a more sustainable alternative to a short car trip. Data from French cities suggest that e-scooters typically replace walking or public transport (in total 74% of the uses), while only 8 % displace car trips (Perry, n.d.).

Despite these challenges, e-scooters still present a potential reduction in urban transportation emissions if they replace personal car travel (Hollingsworth et al., 2019). The true environmental benefits of e-scooters hinge on optimising their collection and charging systems and extending their operational lifespan. This improvement can mitigate some of the negative impacts and enhance the positive contributions of e-scooters to urban mobility solutions. As such, the debate continues on how to best integrate e-scooters into the urban transport ecosystem in a way that genuinely contributes to sustainability goals.

The Nordic countries, characterised by their islands and coastal geography, rely heavily on maritime transportation of passengers, goods, and commodities (Oceana, 2021). This dependency has given rise to a wide array of maritime PSS solutions, from leisure trips to essential personal transport, embodying the region’s deep-rooted maritime culture.

Historically, maritime transportation has been a staple in the Nordic region. Modern developments have introduced PSS models that offer day trips on small boats for both consumer (B2C) and business (B2B) markets in Nordic harbours and canals. These services typically operate on use-oriented models, such as rentals or pooling, often requiring memberships for access.

The environmental implications of these PSS offerings, particularly leisure boat trips, raise critical questions similar to those of other transport models. One such question is whether these services reduce the need for boat production and ownership or merely shift the demand. While PSS solutions expand access to maritime experiences to a broader audience, potentially democratising waterborne leisure activities, they may inadvertently increase overall material and energy consumption. However, boats utilised within these PSS frameworks are likely to achieve higher usage rates, enhancing value creation and potentially offsetting some environmental impacts.

Regarding the environmental impact of PSS solutions providing boat trips for enjoyment, the question of whether the PSS solutions actually replace any production and purchases of boats arises as with the other transportation models. The PSS solutions for boat trips for leisure could add to the consumption of materials and energy since the boat trips become available to a broader consumer group that would otherwise not have the means to access a boat. While this provides more equality in consumption patterns, the overall material and fuel consumption could increase. On the other hand, the boats produced are more likely to have a greater utilisation with PSS business models, with more significant value creation. Depending on the PSS provider’s approach to the acquisition of the boats, the design phase and the maintenance and energy source of the boats, environmentally sound solutions can be provided for “enjoyment” boating. Still, the opposite can be just as likely.

The sustainability of these boating experiences heavily depends on the providers’ strategies concerning the acquisition, design, maintenance, and energy source for the boats. While PSS can offer environmentally friendlier boating options, achieving these outcomes is highly contingent on the implementation practices of the service providers. Therefore, the environmental benefits of leisure boating PSS models are not guaranteed and can vary widely based on operational execution.

Bicycles are a cornerstone of sustainable urban transportation in the Nordic countries, with cities like Copenhagen, Oslo, and Stockholm globally recognised for their extensive bike lane networks and high cycling rates. The well-developed cycling infrastructure in the Nordic region supports year-round cycling, making bicycles a practical and environmentally friendly mode of transport. PSS solutions for bicycles have been introduced in more than 700 cities worldwide, with more than 2,000 bicycle-sharing programs in service (Shui & Szeto, 2020). They are widely acknowledged for reducing car use and fuel consumption, promoting green travel, and improving traffic efficiency. They are widely acknowledged for reducing car use and fuel consumption, promoting green travel, and improving traffic efficiency.

In the Nordic Region, PSS models for bicycles are increasingly prevalent, especially in urban areas, where they contribute to more sustainable mobility. Use-oriented models dominate, including:

Additionally, electric bicycle rentals and leasing models are gaining traction in the Nordic region, providing access to more expensive, higher-quality products. This makes cycling an attractive alternative to car ownership, particularly in urban areas where parking savings further enhance the appeal. These models often include comprehensive service packages, such as maintenance and theft protection, ensuring the longevity of the bicycles and minimising waste.

Bicycle-sharing and rental models are widely regarded as low-cost, low-emission solutions that align with the Nordic countries’ ambitious climate goals. They are praised for supporting societal mobility equality through increased access, reducing emissions, and promoting health benefits. However, different PSS configurations for bicycles come with both minor and major challenges (Egiguren et al., 2021). For instance, studies show that these solutions do not always accommodate diverse user groups (Breengaard et al., 2021), limiting their broader adoption. Another study highlights how PSS solutions for bicycles have resulted in massive investments, unreasonable distribution of bicycles, and significant disruption and stress to urban governance due to “bicycle cemeteries” and immature technologies for recycling the waste from these cemeteries.

A recent study on bike-sharing in Milton Keynes in the UK indicates that bike-sharing usage peaks significantly during the summer months compared to winter, indicating a strong dependency on weather conditions. Additionally, bike-sharing was more frequent on weekdays than weekends, with two prominent peaks during morning and evening hours, suggesting that commuters, rather than recreational users, primarily drive bike-sharing. These insights suggest that the success of PSS models in promoting bike-sharing may depend heavily on local commuting patterns and seasonal variations, adding complexity to their broader implementation in urban areas (Dzięcielski et al., 2024)

Three PSS providers of bicycle renting and leasing solutions have participated in the project pilot programme: Sirqel, based in Oslo, Norway; Rent a Bike & Outdoor, based in Tórshavnar, the Faroe Islands; and Liisabike, based in Copenhagen, Denmark. The pilot projects focused on identifying economic barriers, such as access to loans and insurance, increasing customer appeal for PSS solutions, and assessing the environmental impacts of different transport modes compared to bicycles.

While cycling is deeply embedded as a cultural norm in most Scandinavian countries, this is not the case in places like the Faroe Islands, where the pilot company Rent a Bike & Outdoor operates. Introducing a bicycle rental PSS in the Faroe Islands also aimed to shift local perceptions of cycling as a viable mode of transport. A key focus of the pilot project was understanding customer perceptions of the rental service using a mobility-oriented PSS framework. Overall, customers appreciated the user-friendly system, high flexibility, and personal customer service. However, these benefits for customers also presented challenges for the provider, as maintaining high levels of service and flexibility required significant resources.

The study examined the dynamics between customer and provider perspectives. Customers were drawn to the business model's lack of insurance requirements, flexible service, and high levels of support. However, from the provider’s standpoint, these benefits led to increased maintenance costs, resource use, and operational instability. On the customer side, key barriers to adopting the PSS model included a desire to own the bicycles, a limited product selection, and perceived high costs. For the provider, however, the narrow product range simplified maintenance, and higher prices were necessary to cover administration, repairs, and customer service costs.

Customer interviews revealed additional experience-based benefits, particularly for tourists. Rent a Bike & Outdoor enabled tourists to explore the Faroe Islands with greater freedom and engagement compared to traditional transport options like cars or buses. Customers valued the slower pace of cycling, which allowed them to interact more closely with the surroundings and locals, offering a unique, immersive experience.

However, a survey conducted with existing and potential customers identified some barriers to bicycle rental. About 70% of respondents noted concerns over availability, fearing that their preferred bike might not be available when needed. Additionally, 50% found rental options more expensive than purchasing a bike, while 30% were reluctant to rent due to the lack of ownership. These responses indicate a prevailing culture of ownership, with many customers (particularly locals) still hesitant to embrace the full benefits of rental solutions.

A common challenge for all pilot companies is the high cost of product acquisition, which limits their ability to quickly meet customer demands, offer a broad product range, and scale operations. Although securing loans or funding might seem straightforward, the pilot projects revealed the difficulties small businesses face in obtaining financing, particularly for newer, less common models like PSS.

The loan application process – credit assessments, bank meetings, and extensive documentation – consumes time and resources, with many applications rejected without explanation. Small and medium-sized enterprises (SMEs), which dominate the PSS bicycle solutions consulted during the project, are particularly vulnerable due to weaker financial structures, lower capitalisation, and fewer financing options compared to larger firms.

Interviews with a Norwegian financial institution also revealed that proving the value of PSS models in financial terms is a barrier. These businesses struggle to demonstrate their commercial viability using traditional banking frameworks, which are better suited to linear business models where asset depreciation is easily calculated. For Sirqel, documenting the retained value of their bicycles after their rental lifecycle was problematic despite having an established partnership with a company that systematically buys used bicycles. Although Sirqel’s business model is financially sound, the lack of clear metrics for evaluating bicycles' resale or reuse value hindered their ability to secure loans.

Additionally, the extensive documentation requirements – such as long-term projections and detailed product data – present another challenge. Circular businesses, which operate with longer product life cycles, challenge traditional loan evaluation processes. While Nordic financial institutions have been slow to adapt to these new models, countries like Germany and the Netherlands have shown greater flexibility in supporting circular businesses, offering more favourable financing options.

This research also revealed that the Nordic micro-mobility sector, which includes many of these PSS companies, is characterised by frequent market entries and exits. Even larger, well-funded firms consistently struggle to achieve profitability. For example, one of Denmark’s leading operators has reported ongoing double-digit losses over the past few years, while smaller companies face financial deficits despite receiving significant investment. The reasons for this persistent lack of profitability are not entirely clear but may include high operational costs, market saturation, and fluctuations in demand due to seasonal variations. More in-depth analysis is required to fully understand the financial challenges facing this sector.

Overall, these findings underscore the need for systemic changes in the financial sector to better support circular business models. For companies like Sirqel and Rent a Bike & Outdoor to grow and succeed, Nordic financial institutions must adjust their loan approval criteria to focus more on the long-term sustainability and retained value of circular products. This shift will likely require political and regulatory support to encourage greater investment in green and circular business models.

The pilot companies face a range of technical challenges, both internal and external. Internally, they struggle with operational documentation, such as tracking rentals, managing maintenance and repairs, and handling waste efficiently. Externally, they are hindered by broader infrastructure issues that do not adequately support PSS models, limiting their potential to scale and serve diverse customer needs.

Rent a Bike & Outdoor uses an analogue system to track bicycle rentals, making inventory management difficult, especially during peak tourist seasons in the Faroe Islands. Sirqel faces issues in obtaining financing, which requires comprehensive documentation of products and financial projections. Both companies struggle with integrating digital systems for tracking rentals and operations, a common issue identified among SME PSS providers. A technical solution for registration, monitoring, and documentation of business operations could help streamline operations, reduce resource use, and facilitate financing and partnerships. Without them, these companies face higher operational costs and difficulties in scaling.

Rent a Bike & Outdoor also encounters challenges related to the underdeveloped cycling infrastructure in the Faroe Islands. Since cycling is not yet a common mode of transport in the region, issues such as a lack of road safety information for cyclists and poorly marked routes create difficulties for customers. Some customers expressed concerns about the lack of signage and information regarding which tunnels were safe for cycling. To promote cycling as a viable transport option, the company will need to collaborate with policymakers to push for better infrastructure and safer roads for cyclists.

The environmental potential of bicycle PSS models is most significant when they effectively reduce car dependency, promote long-term use of bikes through maintenance and repair, and avoid the pitfalls of oversupply and poor waste management. However, to fully realise these benefits, the integration of sustainable practices in the management of these systems, along with supportive infrastructure and responsible consumer behaviour, is crucial. Bike-sharing systems not only cut CO₂e emissions and fossil fuel use but also encourage healthier lifestyles and lower urban pollution levels.

Studies evaluating long-term environmental benefits, such as those from New York City’s bike-sharing system, reveal significant impacts. Over four years, the system saved 13,370 tons of oil equivalent and reduced 30,070 tons of carbon emissions and 80 tons of nitrogen oxides, highlighting its contribution to urban sustainability (Y. Chen et al., 2022). In other studies, the environmental impact varies depending on factors like infrastructure, user behaviour, and the extent to which these systems replace car travel (Fishman et al., 2014).

By maximising the use of bicycles through sharing and leasing, PSS models can reduce the demand for new bike production, which cuts down on raw material extraction and energy use. This is especially relevant for electric bicycles, which require more resources to produce but can offer greater emissions savings over time if maintained well.

While environmental impact assessments were not central to the two pilot projects, a literature review was conducted on CO₂e emissions across transportation lifecycles. Although bicycles typically have low CO₂e emissions, the production and end-of-life stages – particularly for e-bikes – still generate emissions The literature review suggests that end-of-life emissions could be reduced through reuse and recycling initiatives, which could involve outsourcing or reselling materials. Additional recommendations include using spare parts made from secondary materials, repurposing parts from decommissioned bikes, and partnering with local organisations to repurpose unavoidable waste, such as for children’s crafts in daycare settings (Baird & Pedersen, 2013; Buberger et al., 2022; Chen et al., 2020; García et al., 2022; Mahesh & Ramadurai, 2017; Qiao et al., 2017; Roman et al., 2023).

Bicycle PSS models in the Nordic region hold potential for sustainable urban transport by reducing new bicycle production, lowering resource use, and cutting carbon emissions through broader access to low-emission options. Short-term rentals, long-term leasing, and bike-sharing systems extend bicycle lifespans by incorporating maintenance and repairs, which helps reduce waste and improve resource efficiency.

Studies indicate that, when adopted at scale, these systems can significantly impact urban sustainability, promoting a shift away from car dependency, reducing traffic congestion, improving air quality, and encouraging healthier lifestyles.

However, scaling bicycle PSS faces challenges. Financial barriers, especially for small businesses like Sirqel, make funding difficult due to the complexity of circular business models. Additionally, limited cycling infrastructure in some regions, such as the Faroe Islands, and a preference for bicycle ownership can limit the growth of rental and sharing programs.