Micromobility booming, but unprofitable
(4min read) Also, Ford CEO wants small, cheap EVs.
Welcome to CoMotion NEWS, your weekly roundup of news and analysis of the mobility revolution. If this email was forwarded, you can sign up here for NEWS.
This week’s stories are a mix of good and bad news. For starters, last year Americans took more shared scooter and bike trips than ever before –– so why are so many micromobility programs shutting down? The American bike boom is great, but it’s tragically been accompanied by an increase in cyclist deaths. The CEO of Ford says it’s time for Detroit to pivot to small, cheap EVs…we’ll believe it when we see it. And if California put aside $30 million for e-bike incentives, why isn’t anybody using them?
Also: Aurora Innovation raises more money for autonomous trucking, Uber notches a win in federal court, Wall Street has mixed views on Elon Musk’s robotaxi promises, a climate scientist says pollution may be the solution to global warming, and finally, CoMotion’s Daniel Eppstein goes from car-free in Amsterdam to car-free in Los Angeles –– and lives to tell the tale.
What you need to know
Micromobility booming –– but at risk: There were more shared scooter or bike trips last year than ever before in the U.S. According to an analysis by the National Association of City Transportation Officials, the 157 million trips was 20% higher than the total in 2022 and 7% higher than the previous record set in 2019 before the pandemic.
Unfortunately, many micromobility services remain unprofitable. Many have responded by shrinking their service areas, hiking prices or both. Others are shutting down. For micromobility to grow (or even maintain current levels of use) the public sector will have to step in with subsidies, says NACTO.
Biking increases, so do biking deaths: America’s bike boom has unfortunately been accompanied by an increase in cycling deaths. 1,105 cyclists were killed on U.S. roads in 2022, the highest total on record. Cycling advocates often argue that the more cyclists are on the road, the safer it will be. It may be that even if it’s become more popular, it is not nearly common enough to prompt the type of culture shift among drivers to really make things safer.
An Uber victory in Philly: A federal judge in Philadelphia dismisses a suit against Uber that challenged the ride-hail giant’s classification of its drivers as independent contractors. The company has already endured two trials this year that led to deadlocked juries; the judge dismissed the third, saying it would be “pointless.” The plaintiffs vow to appeal.
Big raise for Aurora: Self-driving software group Aurora Innovation raises $483 million in support of its anticipated commercial launch later this year. The Pittsburgh-based company plans to go to market with 20 freight trucks manufactured by Volvo and Paccar equipped with its AV system.
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The sad state of California’s e-bike incentives: Despite $30 million in funding, California’s e-bike incentive program has only received 80 applications since its launch two years ago, in sharp contrast to other wildly popular programs that many cities and states have administered in recent years. Pedal Ahead, the vendor hired to administer the program, is now being investigated by state and federal regulators.
Ford said what? Ford CEO Jim Farley says automakers that hope to survive in the EV era must learn how to deliver smaller, cheaper vehicles. It’s a striking comment coming from the head of an OEM that in recent years has relied almost entirely on trucks and SUVs for profits. However, he believes the “bigger car = bigger margins” formula doesn’t apply to EVs. “The bigger the vehicle, the bigger the battery, the more pressure on margin because customers will not pay a premium for that bigger battery.” Let’s hope Ford puts its money where its mouth is …
A stern scooter warning: The city of Northampton, England, warns micromobility operator Voi that the city’s scooter-sharing program will end unless the company makes a number of improvements to service. Among other issues, the company has to do a better job of preventing its users from speeding, illegally parking the devices, or riding with more than one person.
The UK has generally been hostile terrain for e-scooters; they are illegal on public roads throughout most of the country and shared scooter programs are highly restricted. London, for instance, has set up shared-scooter trials in certain boroughs. Nottingham has also embraced rental scooters.
Musk’s robotaxi promises get mixed reviews: Elon Musk is telling investors not to worry about Tesla’s lackluster car sales. Robotaxis that will vault the company’s valuation into the trillions of dollars are just around the corner, he says. The New York Times explores the conflicting views among industry insiders and investors.
What we’re reading
A car-free month in Los Angeles: Our own Daniel Eppstein writes about going car-free during his first month in the City of Angels. He lists the many ways the city must improve mobility for non-drivers, but also reports the many delights he encountered by opting for “less-than-perfectly-convenient” transportation modes.
Pollution as solution to climate change: University of Chicago climate scientist David Keith has a controversial idea for combating global warming: releasing sulfur dioxide into the stratosphere. It seems outlandish, and yet, notes the New York Times, many seemingly outlandish climate tactics are now being taken seriously –– at least in some quarters of the scientific community. But many others believe even the discussion of such an idea is extremely dangerous.
ICYMI
We caught up with LA New Mobility Challenge 2021 Winner Gunnlaugur Erlendsson, founder & CEO of ENSO, to discuss the untapped opportunity of EV tires and their huge plans to launch a $500 Million first-of-its-kind carbon-neutral tire factory in the U.S.
CoMotion's mobility goodness brought to you by:
Jack Craver,
Editor, CoMotion NEWS
jcraver@comotionglobal.com
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