More on E-scooter Economics

Here's a deeper dive into the e-scooter (Bird, Lime, etc.) business model. This take looks at the "unit economics" of scooters, and reminds us that it is a capital-intensive business, and a far from profitable one as yet. Indeed, Lime and Bird have gotten huge inputs of venture capital to stake out market share. 

"ARK’s research suggests that dockless electric scooter companies are not profitable today, primarily because of short-term growing pains that should ameliorate over time. Charging $1 to unlock scooters and then $0.15 per minute to ride, companies like Bird are generating a healthy $2.43 in revenue per mile, but their costs are roughly $2.55 per mile, well above the $0.53 that we believe will be possible as they scale, as shown below.  Lower costs, in turn, could translate either into lower prices for the rider or better margins for the electric scooter companies, perhaps both, sustaining growth and the business model."

IF the industry can scale, and IF the scooters themselves last long enough to earn their keep. Get more here:

https://ark-invest.com/research/electric-scooters