Uber to move from cars to e-bikes for shorter trips

Berlin Germany. The annual conference brings together established start-ups leaders entrepreneurs investors and media

Berlin Germany. The annual conference brings together established start-ups leaders entrepreneurs investors and media

Uber plans to give more attention to it's scooter and bike business, rather than cars, keeping in mind that it could affect the company's profit. The ride-sharing service acquired Jump bikes, a startup that offers electronic bikes in congested cities like Chicago, Austin, San Francisco and Washington, D.C. The bikes have built-in locks that don't require a dock and cost a few dollars for a half-hour.

Ahead of Uber's highly anticipated IPO, Mr Khosrowshahi said investors had to be aware that short-term losses were necessary to achieve longer-term goals - and part of that was a focus away from cars in crowded city centers.

As far as Europe goes, Berlin is touted to be the first city to host Jump e-Bikes. The firm has also invested in the electric scooter firm Lime.

Uber has plans to phase out cars in favour of electric bicycles and scooters for customers taking shorter journeys in big cities.

Khosrowshahi recognises that Uber makes more money from a vehicle journey than a bike trip - but says this would be offset as users engage with the app more regularly for shorter journeys.

'When I've spoken to our driver partners about it, the first impression was, why are you bringing in a bike to compete against me?

Last year Uber lost $4.5bn and is now trying to improve their finances. Khosrowshahi noted that down the road, drivers are more likely to be requested for longer rides that result in bigger paychecks on clearer roads.

"We are willing to trade off short-term per-unit economics for long-term higher engagement".

With Uber Rent, users will be able to rent cars from private vehicle owners - who earn a 60 percent commission on each rental.

To get there, Uber has upped its investment in last-mile transportation services and a public transit app called Masabi that sells tickets for subway trains and buses.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.