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I first wrote about Bird, the electric scooter company, back in March 2018. At the time, they had just raised $115 million and their pitch was that they were going to solve the last-mile mobility problem. This is a real problem, and so lots of urbanist-type people, including myself, were excited. I then rode my first shared scooter in 2019 in Lisbon, and I had a ton of fun. I wrote: "Now I know what all the fuss is about."
But it wasn't all puppy dogs and ice cream. People started getting annoyed by the clutter that dockless scooters were creating in our cities (see above photo). Safety also became a great concern, and so they started getting viewed as a nuisance. Toronto never allowed them (despite my insistent blog posts) and Paris -- which had arguably become the scooter capital of the world -- banned them in early 2023.
Now there's this: Bird announced this week that it has filed for bankruptcy. The once unicorn, which had its stock halted back in September because its market cap fell below $15 million for too long, needs cash. According to FT, they have about $3.25 million the bank, but they have an immediate need for $16.8 million to meet some "financial obligations" in January.
This is maybe not unexpected. But I think the important question is: Is this an existential moment for micro-mobility and shared scooters (i.e. this is a fundamentally bad business), or is it more of a case that money used to be mostly kind of free, and now it's not? Either way, I think there's no question that the latter is going to cause further distress throughout 2024.
But the question remains: Can shared scooters be a sustainable business?
My day job is not to be a scooter analyst. But I do think that a number of things are true:
Riders seem to really like using electric scooters and so top-line demand continues to grow.
There are many headwinds for this business ranging from winter usage to politics.
Barring regulation, there appears to be low barriers to entry.
Lime has already claimed to be the first micromobility company to post a full profitable year.
These first and last points are important ones. I believe it's always going to be easier to get people onto electric scooters and bikes than onto regular bikes; people will generally always choose what is easiest. At the same time, here is a company that has allegedly figured out how to offer this service profitably. Assuming these two things remain true, I think we'll continue to find scooters in our cities.
Photo by Gemma Evans on Unsplash
The National Association of City Transportation Officials (NACTO) has just published this report on shared micro mobility in the US from 2010 to 2021. And it's a good look at how this space has evolved over the years. According to the report, the first modern North American bike share system was installed in Montréal in 2009 and the first in the US was in 2010. Though a quick Google search has Washington DC claiming this title in 2008.
Toronto doesn't like electric scooters. Something about them being dangerous. But here are some interesting statistics for France, which has apparently become the leading scooter market in Europe:
The Fédération des Professionnels de la Micromobilité (FPMM) -- yes, this exists -- estimates that there are about 2.5 million regular scooter users in France.
In 2021, about 900,000 units were sold in the country, which represents a 42% increase compared to 2020.
Sales directly to users is outstripping the revenue from self-service operators such as Lime, Bird, Dott, and Voi. Current annual estimates are in the range of €310 million and €40 million, respectively.
About 50% of scooter sales are happening at grocery stores, compared to 30% at other retailers, and 20% online. (This is kind of interesting. I wonder if people are impulse buying while shopping for food.)
I am a big fan of electric scooters. And all of this suggests to me that scooter adoption is likely to continue, that we are going to need to start thinking more about how best to incorporate them into our cities, and that eventually Toronto will have to stop being so conservative.
I first wrote about Bird, the electric scooter company, back in March 2018. At the time, they had just raised $115 million and their pitch was that they were going to solve the last-mile mobility problem. This is a real problem, and so lots of urbanist-type people, including myself, were excited. I then rode my first shared scooter in 2019 in Lisbon, and I had a ton of fun. I wrote: "Now I know what all the fuss is about."
But it wasn't all puppy dogs and ice cream. People started getting annoyed by the clutter that dockless scooters were creating in our cities (see above photo). Safety also became a great concern, and so they started getting viewed as a nuisance. Toronto never allowed them (despite my insistent blog posts) and Paris -- which had arguably become the scooter capital of the world -- banned them in early 2023.
Now there's this: Bird announced this week that it has filed for bankruptcy. The once unicorn, which had its stock halted back in September because its market cap fell below $15 million for too long, needs cash. According to FT, they have about $3.25 million the bank, but they have an immediate need for $16.8 million to meet some "financial obligations" in January.
This is maybe not unexpected. But I think the important question is: Is this an existential moment for micro-mobility and shared scooters (i.e. this is a fundamentally bad business), or is it more of a case that money used to be mostly kind of free, and now it's not? Either way, I think there's no question that the latter is going to cause further distress throughout 2024.
But the question remains: Can shared scooters be a sustainable business?
My day job is not to be a scooter analyst. But I do think that a number of things are true:
Riders seem to really like using electric scooters and so top-line demand continues to grow.
There are many headwinds for this business ranging from winter usage to politics.
Barring regulation, there appears to be low barriers to entry.
Lime has already claimed to be the first micromobility company to post a full profitable year.
These first and last points are important ones. I believe it's always going to be easier to get people onto electric scooters and bikes than onto regular bikes; people will generally always choose what is easiest. At the same time, here is a company that has allegedly figured out how to offer this service profitably. Assuming these two things remain true, I think we'll continue to find scooters in our cities.
Photo by Gemma Evans on Unsplash
The National Association of City Transportation Officials (NACTO) has just published this report on shared micro mobility in the US from 2010 to 2021. And it's a good look at how this space has evolved over the years. According to the report, the first modern North American bike share system was installed in Montréal in 2009 and the first in the US was in 2010. Though a quick Google search has Washington DC claiming this title in 2008.
Toronto doesn't like electric scooters. Something about them being dangerous. But here are some interesting statistics for France, which has apparently become the leading scooter market in Europe:
The Fédération des Professionnels de la Micromobilité (FPMM) -- yes, this exists -- estimates that there are about 2.5 million regular scooter users in France.
In 2021, about 900,000 units were sold in the country, which represents a 42% increase compared to 2020.
Sales directly to users is outstripping the revenue from self-service operators such as Lime, Bird, Dott, and Voi. Current annual estimates are in the range of €310 million and €40 million, respectively.
About 50% of scooter sales are happening at grocery stores, compared to 30% at other retailers, and 20% online. (This is kind of interesting. I wonder if people are impulse buying while shopping for food.)
I am a big fan of electric scooters. And all of this suggests to me that scooter adoption is likely to continue, that we are going to need to start thinking more about how best to incorporate them into our cities, and that eventually Toronto will have to stop being so conservative.
Whatever the case may be, bike share ridership started somewhere around 321k per year in the US and trip volume is now close to 50 million per year. Electric scooters also joined the mix in 2018, and 2019 was a banner year for this mode of transportation. The report suggests this was due to cheap VC money subsidizing these rides. Electric scooters have seen their average trip cost 2x between 2018 ($3.50) and 2021 ($7), despite the average trip distance remaining more or less flat (1.3 to 1.2 miles).
Naturally, the pandemic was bad for shared mobility. But it is interesting to see how much this space has rebounded and how resilient it seems to be. Prior to the pandemic, bike share usage had clear morning and evening peaks, coinciding with people commuting to work. Since then, we have seen a shift to both a wider range of trips (i.e. to do things like get groceries) and more trips throughout the day.
To download a full copy of the report, click here.
Whatever the case may be, bike share ridership started somewhere around 321k per year in the US and trip volume is now close to 50 million per year. Electric scooters also joined the mix in 2018, and 2019 was a banner year for this mode of transportation. The report suggests this was due to cheap VC money subsidizing these rides. Electric scooters have seen their average trip cost 2x between 2018 ($3.50) and 2021 ($7), despite the average trip distance remaining more or less flat (1.3 to 1.2 miles).
Naturally, the pandemic was bad for shared mobility. But it is interesting to see how much this space has rebounded and how resilient it seems to be. Prior to the pandemic, bike share usage had clear morning and evening peaks, coinciding with people commuting to work. Since then, we have seen a shift to both a wider range of trips (i.e. to do things like get groceries) and more trips throughout the day.
To download a full copy of the report, click here.
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