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Funny, but doubtful that's it even the majority of the reason for this acquisition. Do you really think there's $25M in profit by operating one of many scooter
by joewadcan 7y ago
Funny, but doubtful that's it even the majority of the reason for this acquisition. Do you really think there's $25M in profit by operating one of many scooter rental services in San Francisco?
I'm sure the permit was a nice to have, but Bird's got a bunch of reasons to acquire Scoot. Experience with motorized scooters (which Bird just announced their own variant), an existing software team, a "kleenex"-level trademark, not to mention keeping it away from their competitors.
- viscanti 7y ago> Do you really think there's $25M in profit by operating one of many scooter rental services in San Francisco? How many of Bird's other moves seem to be driven by profit? They seem to be at a point where they're fighting to still exist in a year or two. Given that, they'll want to take some big risks to give themselves as much of a chance as possible.
- joewadcan 7y agoFair point on profit vs growth. But the idea that a mid sized city's scooter permit was the sole reason for the acquisition still doesn't seem reasonable. Possible, just not reasonable
- jpeg_hero 7y ago>But one detail in particular caught my eye. About 24 percent of Uber’s bookings—all the money that customers pay through the app and in cash, including driver earnings—occur in just five cities: New York, Los Angeles, San Francisco, London, and São Paulo. >For a company that operates in more than 700 cities, including quite a few giants—Mexico City, Tokyo, Paris, Lagos, Hong Kong, Seoul, and Mumbai, to name a few—that concentration gives Uber a surprising vulnerability at the local level. And they know it. Acquisition for just SF could be sole justification. If pattern is similar to Uber, SF would be one of the 5 core markets for Bird.