Lyft is reallocating its resources after a $464 million net loss in Q3 2019:
the use of e-scooters and electric bikes between 9 p.m. and 4 a.m. following several fatal nighttime accidents.
Not every market is right for e-scooters or dockless bikes, which can lead to poor unit economics. For instance, suburban or rural areas could limit the number of rides made using a scooter each day, as distances between locations are farther, likely requiring units to be recharged, serviced, or relocated more often. Additionally, operating scooters in markets with harsh climates, like severe cold, can increase the wear and tear on a scooter or bike and even limit their use to certain seasons.
Automakers interested in microbolility should take heed of companies like Lyft reallocating their resources. Micromobility is attractive to automakers because it enables them to drive revenue from consumers who may not be able or want to own a car. In July 2019, US automaker Ford it would expand the presence of its e-scooter company, called Spin, with 15,000 new scooters in eight cities.
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