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Is a license for 2500 scooters worth much, startup wise? Pulling numbers from this: https://medium.com/13-notes/unit-economics-of-the-bird-scooters-f1c971a3157
by Felz 8y ago
Is a license for 2500 scooters worth much, startup wise? Pulling numbers from this:
https://medium.com/13-notes/unit-economics-of-the-bird-scooters-f1c971a31574 https://medium.com/13-notes/unit-economics-of-the-bird-scoot...
To maintain a presence of 2500 scooters for a year, you'd need 2500 * (365 days / 50 days (scooter lifespan)) = 18.2k scooters. That's 18.2k * $600 (lifetime cost) = $10.9 million in capital.
Each of these scooters generating $14 in revenue a day is $12.7 million in revenue a year, for a profit of $1.8 million and a 16% return on capital. If we assume a San Francisco quota was rolled out to the entire country, that'd be (325 million / 880k) * 1.8 million = $664 million in profit, at best.
- deleted 8y ago[deleted]
- cjlars 8y agoThe 50 day lifespan seems too low. Even if the batteries can only survive ~50 charges, the rest of the scooter will outlive the battery. Revising that number upwards skyrockets the ROI figure...
- fipple 8y agoThe scooters that were in SF were certainly not surviving 50 days. They were 90% broken and not because of the battery.
- rorykoehler 8y agoThis is a teething issue that will be fixed by iterative design processes as they learn which parts get stressed by this type of usage.
- fipple 8y agoIf the scooter wars are driven by scooter design the winners are going to be very different than Bird and Lime which are logistics companies.
- rorykoehler 8y agoI agree. It will take a combination of logistics and design. Ofo are winning that race in the bike space but mobike aren't far behind. Here in Singapore obike got it woefully wrong. It was obvious that whoever purchased their bikes is not a cyclist because the bikes were terrible. Obike went out of business.