Uber shifting gears, going all in on e-bikes, scooters
New long-term strategy is moving away from cars for shorter trips
Uber CEO Dara Khosrowshahi has said it before, but he’s saying it again: The company is shifting gears and going all in on electric bikes and scooters.
Uber’s new long-term strategy — shifting away from cars for shorter trips — is aimed at keeping users on its app as cities grow more congested.
“During rush hour, it is very inefficient for a one-ton hulk of metal to take one person 10 blocks,” Khosrowshahi said in an interview with the Financial Times over the weekend.
A recent study — which Uber and Lyft slammed — suggested that ride-sharing apps are responsible for increased traffic congestion.
Uber this year has been laying the groundwork for its shift to bikes and scooters, including by buying New
York bike-sharing company Jump for $200 million in April, and investing in startups such as San Mateo-based scootersharer Lime over the summer. Also in April, Khosrowshahi said in a company blog post that Uber was thinking beyond ridesharing: “We want to provide alternatives to personal car ownership by bringing together multiple modes of transportation right in our app.”
Also as part of the company’s shift in thinking, it has applied for permits to operate scooters in places such as San Francisco and Santa Monica.
Uber’s chief executive acknowledged in the interview that the San Francisco-based company would make less money renting out bikes than from enabling car rides through its app. But he said it would be worth it.
“Short-term financially, maybe it’s not a win for us, but strategically long term we think that is exactly where we want to head,” Khosrowshahi told the FT. He also said some drivers are receptive to the idea, claiming they have said, “‘Oh, I get a longer ride where I can make more money? Sign me up.’ “
Harry Campbell, author of “The Rideshare Guide,” a book about driving for ridehailing services, said Monday: “This isn’t the worst thing in the world … for drivers since Uber takes a large cut on short rides and typically minimum fare rides (3 miles or less on UberX) are an incomekiller.”