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If you’re interested, give this podcast from Recode a listen: https://www.recode.net/2017/8/18/16165116/brad-bao-limebike-bicycle-sharing-recode-too-embarrassed

by cepth 9y ago

If you’re interested, give this podcast from Recode a listen: https://www.recode.net/2017/8/18/16165116/brad-bao-limebike-bicycle-sharing-recode-too-embarrassed-to-ask-podcast-kara-swisher-lauren-goode https://www.recode.net/2017/8/18/16165116/brad-bao-limebike-.... According to Brad Bao of Limebike, generally the cost of a bike is covered in 4 months. In a recent Time magazine piece on bike sharing, the Chinese company Ofo is listed as being able to produce a bike for $50 USD. Assuming you’re charging $1 per hour, and even factoring in depreciation and maintenance, I don’t think it’s hard to see how bikesharing could be financially lucrative. These bike sharing startups may actually have a business that is capable of generating an operating profit. The trouble comes when they produce 2x or 3x the bikes needed in a city, and end up with junkyards full of bikes.

s17n 9y ago
Jump bikes are electric assisted drive, they are gonna cost an order of magnitude more than $50 to build.
- cepth 9y ago
  From the LimeBike podcast interview transcript: 'Right. The unique economics then comes back to the start. There are two parts. To the bike itself is straight up that all bikes are roughly about $300 at a manufacturer cost. You’re looking at retail price of this equivalent bike, maybe $900 to $1,000. Manufacturer’s bike, the top bike manufacturer in the world.'. They charge $1 for a 30 minute ride. If we believe that they recoup the cost in 90 days, they're doing $3.33 in revenue per day, or roughly 3.33 half-hour rides per day. The breakeven on the bike itself would be at 300 rides at $1 each. A quick Google search shows that well-reviewed e-bikes are commercially available from $650 and up. JUMP charges $2 per half-hour ride (per their website). They would need to generate 325 rides to break even. It doesn't seem that the payback period on the bike itself is meaningfully longer than a traditional bike. Keep in mind, this is assuming that JUMP is paying anything close to retail on e-bikes. Anyone who visits a HKTDC or Canton Fair trade show will have seen that there are some seriously impressive e-bikes (folding, lightweight, 15MPH), available for a fraction of $650 if you're buying in bulk. EDIT: Changed $6.66 in revenue per day to $3.33. My mistake.

by cepth 9y ago

s17n 9y ago

Jump bikes are electric assisted drive, they are gonna cost an order of magnitude more than $50 to build.

cepth 9y ago
From the LimeBike podcast interview transcript: 'Right. The unique economics then comes back to the start. There are two parts. To the bike itself is straight up that all bikes are roughly about $300 at a manufacturer cost. You’re looking at retail price of this equivalent bike, maybe $900 to $1,000. Manufacturer’s bike, the top bike manufacturer in the world.'. They charge $1 for a 30 minute ride. If we believe that they recoup the cost in 90 days, they're doing $3.33 in revenue per day, or roughly 3.33 half-hour rides per day. The breakeven on the bike itself would be at 300 rides at $1 each. A quick Google search shows that well-reviewed e-bikes are commercially available from $650 and up. JUMP charges $2 per half-hour ride (per their website). They would need to generate 325 rides to break even. It doesn't seem that the payback period on the bike itself is meaningfully longer than a traditional bike. Keep in mind, this is assuming that JUMP is paying anything close to retail on e-bikes. Anyone who visits a HKTDC or Canton Fair trade show will have seen that there are some seriously impressive e-bikes (folding, lightweight, 15MPH), available for a fraction of $650 if you're buying in bulk. EDIT: Changed $6.66 in revenue per day to $3.33. My mistake.