Uber has been busy diversifying its transport offerings pointing to a potentially greener network of mobility options. Uber now plans to focus more on electric scooter and bikes and less on cars in an attempt to capture a slice of the future.
The moves, that might mean short-term financial pain, are a response to both social changes and regulations. From a social viewpoint, the costs of transport ownership in urban centres coupled with potentially more frequent shorter journeys and traffic jams mean that there is a desire to use more personal transport. Uber’s Jump electric bikes are now operational in eight US cities and compete with other global brands such as Mobike, and Uber has also linked up with an electric scooter company Lime.
Uber has faced pressure from its losses as it attempts to grow and diversify, and reputational damage from its governance, all of which weighs on its attempts to start public listing, but it also has had to cope with a loss of revenue due to regulation. It temporarily lost its licence to operate in London, after it was judged not a “fit and proper” private car hire operator, and New York has voted to impose a temporary cap on new licences for ride-hailing vehicles to tackle congestion. Other cities may follow New York’s lead.
In addition, two Hackney and Islington councils are already about to ban polluting vehicles from some areas at peak times, reducing the potential fleet in London, and again several other cities may follow suit.
All of this makes Uber’s move strategically sound, but it will continue to face both scrutiny and competition.
Recent Stories