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Urban Mobility Platform: Uber plans to expand its business with scooters and electric bicycles for short journeys

Uber is studying the possibility of expanding its VTC business (rental cars with driver) to short-haul transport with scooters and electric bicycles, as part of its long-term strategy.

The inclusion of these two new means of transport in the Uber service would improve travel within large cities and, in the long term, drivers who operate for the company will benefit from a greater number of longer and more lucrative routes, according to assured the CEO of the company, Dara Khosrowshahi, in statements to the ‘Financial Times’.

Khosrowshahi noted that individual modes of transport are better suited to cities, although they would “snatch” income from application drivers. In addition, he admitted that the inclusion of scooters and electric bicycles would mean a new “financial blow” for the company that connects passengers and drivers, after presenting losses of 4,500 million dollars in 2017 (3,875 million euros at the current rate).

In this regard, the executive warned that Uber investors should be aware that short-term losses are necessary to achieve long-term objectives.

“We are willing to sacrifice the economy for greater long-term commitment, and in my career I discovered that long-term commitment wins wars and, at times, it’s worth losing battles to win wars,” he said.

Uber bought Jump bike company last April for 200 million dollars (172 million euros), and already operates in eight cities in the United States (US), including New York, Washington and Denver. In addition, he will soon arrive in Berlin.

Khosrowshahi, who arrived in Uber a year ago, has also reached an agreement with the electric scooter company Lime and with the company that develops and markets mobile ticket services Masabi, based in London, to build what it calls a “urban mobility platform”.

Also published on Medium.

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