Uber explains it’s now focusing on “bikes rather than cars”

Uber will now focus more on bikes than VTC, even if it affects their revenue. The firm has invested in many companies specializing in electric bike and scooter rentals. The idea is to encourage customers of the VTC app to cycle for the shortest journeys and book cars for longer, more revenue-generating journeys.

Uber claims In the columns of the Financial Times that more individual means of transport, such as bicycles and electric scooters, are more convenient to city centers than cars. Uber believes in Uber, relying on feedback from cities like Paris that take pride in bikes, as well as the company’s acquisitions in the United States, such as Jump and Lime, startups specializing in bike and scooter rentals. that these means of transportation will develop in the coming years.

Why is Uber focusing on bikes now?

According to Uber, these two modes of transportation complement each other. First, as bicycles and electric scooters are better suited for short trips: “It is very inefficient to carry a person 10 blocks away in a metal carcass weighing a ton in the middle of a rush hour”, He believes the firm’s new CEO, Dara Khosrowshahi. And to add: “In the short term, financially, maybe not a winner for us but strategically we think this is exactly where we want to go in the long run”.

The idea is to force the firm’s customers to take an Uber for longer journeys that bring in more money: “We are ready to replace a short-term economy in units with a stronger long-term commitment”. According to him, drivers need not worry that they will make more profit in the long run. Paradoxically, revenues from VTCs are increasing at Uber. But the firm is expanding into new areas such as bike and scooter rentals and food delivery.

Ultimately, the firm lost $4.5 billion last year due to this expansion. The firm is also threatened by the legislature in some markets where the VTC service competes with taxis that have purchased licenses to practice their profession. Not to mention that in New York, London, Paris and even Berlin cars are accused of heavy pollution during rush hour and town halls have taken measures to limit circulation.

For now, the company’s Jump electric bikes are available in eight cities in the United States. The service arrives in Europe, initially in Berlin, at an as yet undisclosed date.