7 ms·
> The founder illustrates what Scoot saw as a gigantic problem in the space - theft and vandalism Is this actually a serious impediment to the scooter business
by dcolkitt 7y ago
> The founder illustrates what Scoot saw as a gigantic problem in the space - theft and vandalism
Is this actually a serious impediment to the scooter business model? Bulk electric scooters can be sourced from Chinese manufacturers for <$200. The ride sharing services charge $0.15/minute.
You breakeven in 24 hours of ride time. Assuming 30% utilization during peak hours and 10% off hours, the payback time is less than two weeks of deployment. You'd have to expect 5-10% of your fleet to be vandalized/stolen every day, before it breaks the margins.
- TallGuyShort 7y agoTheir costs are higher than just the scooters. Not intimately familiar with either business, but I'd expect the scooters themselves to be on of the smaller costs. The infrastructure to charge them I'd expect to be one of the bigger ones, at least early on. Maybe on an on-going basis if that requires people to go retrieve scooters, etc. And I'd want a proprietary lock long before theft had actually eliminated my entire margin.
- deleted 7y ago[deleted]
- neodypsis 7y agoAlso, don't forget the telecom costs.
- arcticbull 7y agoThe Information reported they (Bird) were paying $551 with a goal of reducing it to $360 per scooter. The unit economics are pretty atrocious, tbh. These scooters aren't designed for continuous operation out in the wild, for the average American girth, on anything other than a flat surface -- so they break a lot. The average lifespan is 32 days (median 28) -- and only goes 85 miles over 70 trips. Average is 1.63 miles per trip, 18 minutes long, and 3.49 rides per day on average. That's why scooter rides are so expensive compared to JUMP, for instance. [1] Some napkin math indicates they lose (at minimum) $267 per scooter. [1] https://www.theinformation.com/articles/inside-birds-scooter-economics https://www.theinformation.com/articles/inside-birds-scooter...
- knur 7y agoThis was true back then, when Bird and most other companies were using m365 and esx scooters. The newer generation of scooters is way more durable, and have better battery life. The reality now with scooters like the Bird Zero is that churn is at least 10 months, which is more than enough to pay the vehicle and operational cost 7.5x Disclaimer: I work in this space.
- deleted 7y ago[deleted]
- arcticbull 7y agoInteresting, though this slice/dice of the data [1] figuring in all known expense quantities show that they only make a net of $2.32 per day in Louisville. Even if we take 10 months that's still just under $700. Those economics do look a lot better, but don't more durable/beefier scooters cost more? I'm not seeing a way to get 7.5X back no matter how the numbers are finagled. Curious how they know the scooters will last 10 months when new versions can't have been out in the wild in quantity for more than a single quarter. To be clear, I'm not saying it can't be done, I'm just hoping to learn more about whether it has yet. [1] https://qz.com/1561654/how-long-does-a-scooter-last-less-than-a-month-louisville-data-suggests/ https://qz.com/1561654/how-long-does-a-scooter-last-less-tha...
- koolba 7y agoHaving seen what people do those scooters I can’t imagine any model lasting ten months on the street.
- liyanage 7y agoI'm curious, do you know what scooter model Skip uses in SF? I've also seen Bird use it in San Jose and possibly elsewhere. It has a Segway label. That model is fantastic. Very pleasant brake, and it is much more powerful than the one Scoot uses. The Segway one gets me up some of the hills in SF, whereas the Scoot one is woefully underpowered, a joke for a hilly city like SF.
- nerfhammer 7y agoScoot was primarily renting out full-size street-legal mopeds that you need a driver's license to drive, not the little $200 scooter things that you stand on.
- taneq 7y agoDid they come with helmets? Or not require them?
- nerfhammer 7y agothey came with helmets
- rockinghigh 7y agoThey also pay people to charge the scooters.
- neodypsis 7y agoI've seen people in México City doing this late at night. I wonder if they are aware of the real costs of their services. Also, do they only pick scooters below a certain battery level? I observed one crew that picked one but left the other one next to it.
- rockinghigh 7y agoThey have algorithms to pick which scooters should be moved and charged and compute a price to pay the people who charge them. You ideally want all your scooters to be fully charged before rush hour in the morning.
- Jommi 7y agoThis also depends on the market. Not all cities have worked out with the freelancer charging model.
- Jommi 7y agoYoure completely off with your assumptions. Source: Work in the industry.
- taneq 7y agoCare to enlighten us? I've always thought the scooters-as-a-service business model seemed bonkers but apparently a lot of people (including yourself?) disagree, so what am I missing?
- Jommi 7y agoNo at the moment I am quite sure it is absolutely bonkers, and this acquisition for much lower than the "valuation" gives some support for that. However there are some potential caveats which could turn the whole game around. The thing is that when doing scooter profitability calculus, there are few inputs that when changed can have a massive effect. Some of these could be: Scooter durability, Scooter Battery life, Effect of theft & vandalism, cost of charging.