E-scooter providers must change their strategy if they want to survive

E-scooters are practical, but they are also criticized. They will only prevail if the providers change something.

The pressure on e-scooter companies is growing. Not only because most startups don’t make any money from the rental business, but above all because cities are increasingly taking action against scooters. Paris has completely banned e-scooters from the city. In Madrid E-scooters are no longer allowed to be transported on public transport Berlin wants the number reduce the number of available scooters from 25,000 to 19,000 vehicles. Difficult times are approaching for providers.

The pressure is increasing

The times when investors could access cheap loans are over. Accordingly, it is becoming more difficult for startups to maintain the flow of money. If you want new investments, you have to convincingly demonstrate that you will also earn money in the future. And that’s exactly what pure e-scooter providers find difficult. Companies that only offer e-scooters as part of their mobility portfolio can cope better with the losses. But if the pressure from cities continues to increase, these companies will also consider whether they want to continue offering e-scooters.

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The question of whether e-scooters will be able to compete against e-bikes or normal bicycles in the future has not yet been answered. But e-scooters have two important advantages over an e-bike. They are cheaper and require less maintenance. These are important points for companies because they affect refinancing. On the other hand, e-scooters are a nuisance, especially because users don’t follow the rules.

Many people drive on the sidewalk even though it is not allowed. Others simply park the scooters in the middle of the path. In addition, the number of injuries caused by the use of e-scooters in cities has increased significantly. But introducing a helmet requirement is not a solution either, as providers cannot provide helmets. But it is clear that something has to change.

The end of free floating?

One of the most important changes in the industry is the move away from “free” scooter deployment, where companies could park the scooters anywhere in a city. The system is not sustainable for either the cities or the companies. The best way to deal with this is to have fixed parking zones where the scooters can be parked. Since these are now all equipped with GPS, it is no problem for companies to track compliance with parking rules. However, cities have to create parking space for this. The easiest way would be to convert existing car parking spaces for this purpose.

In general, it is primarily the cities that need new strategies. Simply allowing any number of scooter providers into the city is not a good strategy, as the past has shown. Some cities have therefore started to enter into targeted partnerships.

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The US metropolis of Pittsburgh adopted a different strategy some time ago. As part of the Move PGH pilot, the city only allowed one e-scooter provider, Spin, to operate within city limits. Contrary to popular belief, Move PGH was not an e-scooter pilot project. Rather, it was about integrating various means of transport such as e-scooters, car sharing, bike sharing, carpooling, e-mopeds and transit into Mobility as a Service (MaaS).

The e-scooter industry must adapt if it wants to play an important role in the future of urban transport. With continued collaboration between cities and operators, scooter sharing can be a valuable tool for reducing traffic congestion, improving air quality and creating more livable cities.

Don Dahlmann has been a journalist for over 25 years and has been in the automotive industry for over ten years. Every Monday you can read his “Torque” column here, which takes a critical look at the mobility industry.