Ride-sharing company Uber recently unveiled its plan to roll out electric bicycles and scooters for customers who have booked a shorter trip. Uber said that this is part of the company's long-term strategy, as well as the adoption of other means of transportation apart from the conventional ones.
Uber Chief Executive Officer Dara Khosrowshahi said that individual modes of transportation such as electric bicycles and scooters are more conducive to use when it comes to inner-city travel. While this new idea is considered novel and innovative, some market experts are wary that this new transportation option from Uber might deter revenues away from its growing pool of drivers.
Mr. Khosrowshahi admitted that the plan to roll out electric bikes and scooters will have a significant effect on the company's current operation. However, the CEO added that this will only be a short-term hurdle and that the company is willing to sacrifice in order to achieve a far brighter long-term goal. Last year, Uber reported a loss of $4.5 billion.
Mr. Khosrowshahi assured investors that short-term losses are necessary in order to achieve the company's long-term plan. Moreover, he added that this new business model is also part of the company's plan to focus away from cars when it comes to inner-city transportation methods.
In an interview with the Financial Times, Mr. Khosrowshahi said, "During rush hour, it is very inefficient for a one-ton hulk of metal to take one person 10 blocks."
Uber first added the option to use electric bikes on its mobile app in February. Following this decision, the company acquired the bike-sharing startup Jump for $200 million in April. As of this writing, Jump bikes are available in eight cities in the United States including Denver, Washington, and New York. Jump is also expected to launch its services in the German city of Berlin soon.
Mr. Khosrowshahi joined the ranks of Uber in 2017. Since then, the CEO has finalized two major deals. First was with Lime which is an electric scooter company. Next was with Masabi which is a London-based app that provides its users with mobile ticketing for various public transportations.
These deals are part of Uber's investment into what the CEO calls "urban mobility platform." Aside from its core transport business, Uber is also diversifying its services to include freight brokerage and food delivery.
