₦airaland Forum

Uber says it plans to focus more on its electric scooter and bike business, and less on cars, despite the fact it could hurt profits.

Boss Dara Khosrowshahi said that individual modes of transport were better suited to inner city travel.

He also forecast users would make more frequent shorter journeys in future.

"During rush hour, it is very inefficient for a one-tonne hulk of metal to take one person 10 blocks," he told the Financial Times.

"Short-term financially, maybe it's not a win for us, but strategically long term we think that is exactly where we want to head."

The ride-sharing firm has invested in a number of bike firms in the last year.

Its Jump electric bikes are now available in eight US cities, including New York and Washington, and are soon launching in Berlin.

It also teamed up with Lime, an electric scooter company, while forging deals in other areas such as public transit and freight.

Mr Khosrowshahi admitted that Uber makes less money from a bike ride than from the same trip in a car, but said this would be offset as customers used the app more frequently for shorter journeys.

"We are willing to trade off short-term per-unit economics for long-term higher engagement," he told the FT.

He also acknowledged that Uber drivers could lose out from the plan, but said over the longer term drivers would benefit from more lucrative longer journeys.

Under pressure
Uber, which lost $4.5bn (£3.5bn) last year, is under pressure to improve its finances ahead of an anticipated public listing.

Revenue from its taxi business is rising but the cost of expansion into new areas such as bike sharing and food delivery has meant losses have grown rapidly.

Regulatory pressure is also threatening growth in some markets.

This month New York voted to impose a temporary cap on new licences for ride-hailing vehicles to tackle congestion, while the mayor of London has said he will seek similar restrictions.

ALLROUNDGIST.COM.NG

Lazyreporta:
Uber says it plans to focus more on its electric scooter and bike business, and less on cars, despite the fact it could hurt profits.

Boss Dara Khosrowshahi said that individual modes of transport were better suited to inner city travel.

He also forecast users would make more frequent shorter journeys in future.

"During rush hour, it is very inefficient for a one-tonne hulk of metal to take one person 10 blocks," he told the Financial Times.

"Short-term financially, maybe it's not a win for us, but strategically long term we think that is exactly where we want to head."

The ride-sharing firm has invested in a number of bike firms in the last year.

Its Jump electric bikes are now available in eight US cities, including New York and Washington, and are soon launching in Berlin.

It also teamed up with Lime, an electric scooter company, while forging deals in other areas such as public transit and freight.

Mr Khosrowshahi admitted that Uber makes less money from a bike ride than from the same trip in a car, but said this would be offset as customers used the app more frequently for shorter journeys.

"We are willing to trade off short-term per-unit economics for long-term higher engagement," he told the FT.

He also acknowledged that Uber drivers could lose out from the plan, but said over the longer term drivers would benefit from more lucrative longer journeys.

Under pressure
Uber, which lost $4.5bn (£3.5bn) last year, is under pressure to improve its finances ahead of an anticipated public listing.

Revenue from its taxi business is rising but the cost of expansion into new areas such as bike sharing and food delivery has meant losses have grown rapidly.

Regulatory pressure is also threatening growth in some markets.

This month New York voted to impose a temporary cap on new licences for ride-hailing vehicles to tackle congestion, while the mayor of London has said he will seek similar restrictions.

ALLROUNDGIST.COM.NG

Good one

why is it good

BabbanBura:
Good one

I'm afraid they won't be able to plight all roads in Lagos

Watch out for bajaj on uber soon, uber that can send you driver with golf or celica.

veekid:
I'm afraid they won't be able to ply all roads in Lagos

Go kada things

Eyah, Gokada would be like

as in okada tins?

sorry not available in SE

Okada on the beat.

They want to rival Gokada and MAX.ng

Check out this car already being tested

Oyinbo and sense are like eeeh

just hope we adapt fast, me i call it water way taxi

www.nairaland.com/attachments/7570182_rsz5affc12fb80b4620x413_jpeg8b6597d0f3d2eb278fdf71261e109507

Bikes are dangerous in Nigeria... the death rate is mind bogling an unreported. Obviously for saner countries.

Nice move bt bad market 4 d real owner of Lagos road

Get ready for more regulation issues Uber.

oya na uber self wan join okada association make dem hire aboki dem dey go get profit die but ready to buy fuel or recharge battery because aboki speed no be for here oo

Uchenaija:
Eyah, Gokada would be like

On the contrary bro, they'll be smiling to the bank, all they need to do is position them self for a stake out or a buy out by uber.

Let us see how it goes.

In other words, Uber wants to put okada on the road as well.
Shebi there's a Nigerian company that started something of that sort recently. I wonder if they are still alive though.

This should be an encouragement to that business man who came up with that idea. However, Lagos state government and the ban on okadas no go allow the business survive sha.

PS: Isn't it funny that when we keep following the tracks of the western world in our quest for technological advancement, their track still heads back to the past thereby making our pursuits and chase look futile. We believe that Rapid Bus Transit is the future but you can see an innovative business like Uber thinking about running bikes through traffic congested gridlocks in the USA. It tells you that you fashion innovation to your own peculiar needs and not what Johnny is doing at his own backyard.

Jyde89:
On the contrary bro, they'll be smiling to the bank, all they need to do is position them self for a stake out or a buy out by uber.

Exactly! I actually envisioned this competition, sooner or later

Max.ng and others in Nigeria will be crying now.

.

Durchmann:

In other words, Uber wants to put okada on the road as well.
Shebi there's a Nigerian company that started something of that sort recently. I wonder if they are still alive though.

This should be an encouragement to that business man who came up with that idea. However, Lagos state government and the ban on okadas no go allow the business survive sha.

PS: Isn't it funny that when we keep following the tracks of the western world in our quest for technological advancement, their track still heads back to the past thereby making our pursuits and chase look futile. We believe that Rapid Bus Transit is the future but you can see an innovative business like Uber thinking about running bikes through traffic congested gridlocks in the USA. It tells you that you fashion innovation to your own peculiar needs and not what Johnny is doing at his own backyard.

gokada is sti very much alive though.. BTW There are different class of bikes. Lagos state didn't ban all. The ones used inside estates are different from the ones used by dispatch riders & other higher grade ones like power bikes.

seunoni34:
gokada is sti very much alive though.. BTW There are different class of bikes. Lagos state didn't ban all. The ones used inside estates are different from the ones used by dispatch riders & other higher grade ones like power bikes.

Ok.
That's good to know.
Thanks for the update.