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Businesses The Almighty Buck

Shared Scooters Don't Last Long (substack.com) 196

Alison Griswold, writes on her newsletter Oversharing: I took a look at data on scooter rides in Louisville, Kentucky, shared online as part of the city's open data policy. The latest data is available here. The data set I used was older and included monthly data on scooter trips from August through December. It also included a unique "ID" for each scooter, a detail that was key to my analysis and has been stripped out of subsequent data sets published by Louisville. The data doesn't differentiate between Bird and Lime, but as Bird started operations in August 2018 and Lime that November, you can assume it skews toward Bird.

With that preamble, here are some things I found: The average lifespan of a scooter in Louisville from August to December was 28 days. Median lifespan was 23 days. If you stripped out scooter IDs that first appeared in December, to focus on older vehicles, the average lifespan increased slightly to 32 days and the median lifespan to 28 days. Still stripping out scooter IDs that started in December, the median scooter took 70 trips over 85 miles.

Scooter lifespan is a key factor in scooter unit economics, as you may recall. The more trips and miles a single scooter can cover, the better for shared scooter companies, which have to recoup the cost of each vehicle before they can start making any money. In October, The Information reported that Bird was spending $551 per scooter with a goal of reducing that cost to $360. At the time, I said that meant Bird needed five rides a day on a $551 scooter for 5.25 months just to recoup the initial cost. The picture painted by the Louisville data is even worse.

[...] So, our scooter company walks away with $2.32 in revenue per day from the average scooter in Louisville. As we said at the beginning, Louisville data indicates that the average scooter was around for between 28 and 32 days. That means the typical scooter generated something like $65 to $75 in revenue for the company after most operating costs over its lifetime.

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Shared Scooters Don't Last Long

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  • by FudRucker ( 866063 ) on Friday March 01, 2019 @10:04AM (#58199058)
    with junk scooters, including those toxic batteries and electronics, cities should require they be recycled as much as possible, all refuse should be recycled as much as possible because we cant survive by turning the planet in to a dump
    • by DarkOx ( 621550 ) on Friday March 01, 2019 @10:22AM (#58199178) Journal

      all refuse should be recycled as much as possible because we cant survive by turning the planet in to a dump
      Flag as Inappropriate

      Honestly I think recycling is the wrong focus. Recycling is often energy intensive process with frequently very mixed results to produce raw materials that than have to be turned into something useful again via manufacturing which is often another energy intensive process. Both operations likely produce their own wastes and byproducts.

      If we want get serious about protecting the environment at least where electronics, batteries and machinery are concerned, we need to focus elsewhere. Specifically we need to work on lengthening the service life of products. We need to look at reuse and re-manufacturing.

      • by Trailer Trash ( 60756 ) on Friday March 01, 2019 @10:34AM (#58199236) Homepage

        Yep. "Reduce. Reuse. Recycle."

        There's a reason "recycle" is last in that list.

      • Certain products like aluminum have a huge up-front energy cost associated with their production. Recycling those makes sense, as the energy cost of recycling is a lot less than the energy cost of producing new aluminum.

        Other stuff, I'm not sure why people are recycling. Paper is made from carbon plants pulled out of the air. Disposing of paper in landfills sequesters that carbon underground. OTOH, recycling paper reduces the need for new paper, discouraging people from planting new trees (to chop do
    • by jbmartin6 ( 1232050 ) on Friday March 01, 2019 @10:51AM (#58199326)
      Yes, just like the piles of abandoned rental bikes in China [theatlantic.com]. Well it will be a convenient source of metals for future generations, unless they get classified as historical artifacts.
      • by Comboman ( 895500 ) on Friday March 01, 2019 @01:24PM (#58200030)
        Hmmm, maybe the Terracotta Army [wikipedia.org] is actually some ancient, failed, rent-a-statue business venture.
        • by dgatwood ( 11270 )

          Speaking of armies, did anybody else read that headline initially as "Scared shooters don't last long"? My eyes popped out of my head for a moment, before I reread it. I was half expecting some pop psychology discussion of school shootings or gang violence or something.

          This is the disadvantage of reading that right after the story about China's social credit system....

      • That 2nd picture looks like a rosemary bush with miniature buildings around it. Then you realize it's bikes. It was worthwhile scrolling to the bottom. Amazing pix.

    • As someone pointed out below, there's a non-zero chance that they get monthly maintenance, and are reassigned a new UUID after. There just isn't a use-case to stick a permanent ID on a scooter, or a part of a scooter. You just need to track it when it's out of the shop, and tie it to the users.

      It's quite possible that this whole article is based on that simple misunderstanding by the author, who does not seem to have discussed their finding with the entities involved to any reasonable level. There is one qu

      • Yeah I think the numbers here are bullshit. Here's a Wired article that mentions that Lime scooters last about 6 months: https://www.wired.com/story/li... [wired.com]

        That's still pretty shot of course, but we need to keep in mind that the utilization rate would be much higher than for a privately owned scooter. Like if somebody drove your car 24/7 it'd crap out in a year too.

        • Wired is what product managers and SEO influence facilitators read if they find New Scientist too taxing.

    • by fermion ( 181285 )
      Not landfills, lakes, rivers, pond, bayous, oceans. I suspect, and it has been somewhat documented, that people who don’t like scooters blocking the sidewalk just literally throw them in the lake.

      The best case scenario is that cities are confiscated them and selling them to recoup violation fees.

  • Deep 6 (Score:5, Interesting)

    by PuddleBoy ( 544111 ) on Friday March 01, 2019 @10:10AM (#58199098)

    They did a trial of the scooters in Portland (which has a river running thru downtown) and there is speculation about just how many of the scooters ended up at the bottom of the river. They were able to trace a few of them to that watery grave.

    The biggest concern here was riders without experience and who did not use helmets. There was an uptick in ER visits for scooter accidents.

    • Re:Deep 6 (Score:4, Insightful)

      by Anonymous Coward on Friday March 01, 2019 @10:23AM (#58199180)

      News flash: people don't take care of shit they didn't have to purchase or get emotionally invested in.

      • Re:Deep 6 (Score:5, Insightful)

        by ShanghaiBill ( 739463 ) on Friday March 01, 2019 @01:50PM (#58200222)

        News flash: people don't take care of shit they didn't have to purchase or get emotionally invested in.

        This is why communism doesn't work.

        It is too bad that Karl Marx didn't run a scooter company before he wrote Das Capital. That would have saved us all a lot of trouble.

    • by Anonymous Coward

      Austin has also seen them in the river. I believe the city is charging Lime/Bird if they fish one out. ER visits are also up here as well. I believe scooter accidents are now exceeding bicycle accidents. If the article is true, it does not even factor in scooters are not paying for the free rent on sidewalks/private property when they are not in use.

      • Re: (Score:3, Interesting)

        by Anonymous Coward

        Each day in Austin, 20+ people on scooters wind up in the ER.

        As for underwater visits, if you passed Waller Creek near Red River in Austin, you would see at least several Lime or Bird scooters a day in the drink, especially around UT, where people just yo-heave-ho them as a way to silence the constant noise they make when tipped over.

        Scooters have a bad rep. Mainly because people use them in buildings, park them behind cars. The people who charge them in the morning sling them on private property, on hand

    • The biggest concern was that they were strewn about the sidewalks, period.
    • If more people are using something then there will be an uptick in ER visits because of such something.

      The biggest problem with a Sharing and Service Economy. Is the lost of Pride of Ownership. When you Own something especially if it is something you have sacrificed to buy. You tend to treat it better and more carefully, when something is rented, or paid with your tax dollars, you don't feel it is yours, and more apt to abuse it, just to get the most out of your buck that you can during that time. So you

      • by DamonHD ( 794830 )

        A previous business partner on mine used to deadpan "What's the only kind of car that does not need careful driving and maintenance?" to which the answer was of course "A rental car."

        (He was observing, not endorsing.)

        Rgds

        Damon

  • Sure, they last about a month on the street. Does the idiot who wrote this assume they are then tossed in the garbage? No. They come into a shop for a couple hours of repair work, and go back out on the street. What a fucking moron.

    • by Anonymous Coward

      But why would repairing the scooters change their ID?

      • Plenty of good reasons for that. One, it's effectively a different scooter or a chimera at that point. Anything you'd want to track by ID would be useless after it goes through repair anyway.

        • by Anonymous Coward

          Plenty of good reasons for that. One, it's effectively a different scooter or a chimera at that point. Anything you'd want to track by ID would be useless after it goes through repair anyway.

          Occam's razor: A simpler explanation is that they fucking break.

        • by Anonymous Coward

          Ah, the old Scooter of Theseus argument...

        • Call me cynical, but if I was a large organization with reasons to hide my inventory information from competitors, but also reason to release info to the public about the services I am providing. And if I could get the cost of my proprietary, and identifiable, add on board down to US$10 at scale. Then every time I brought something in for repair I would swap out the that component and just have a table in my database that keeps track of ID changes. From the outside world it would look like I have deployed w
      • by hey! ( 33014 ) on Friday March 01, 2019 @12:04PM (#58199606) Homepage Journal

        These scooters likely get stripped down to parts, which are completely interchangeable, so there's no point in tracking individual parts that "go together". This leaves you with the Sacred Galley of Athens question -- is it the same boat after you've replaced every single part? If you completely disassemble a dozen schooters and reassemble a dozen scooters from randomly selected parts, what happens to the "identity" of the scooters that were taken apart? The answer is you don't need it anymore.

        If it were firearms, we associate the identity of the firearm with the receiver -- the metal housing into which the barrel and moving parts of the firearm are assembled. But that's purely conventional; you could just as reasonably define the identity of the firearm by the barrel. But why even have a concept for the "identity" of a firearm? Really one only: to track ownership and custody of a firearm, you have to have some kind of database. Databases require identifiers. Seventeenth century gunsmiths didn't stamp serial numbers on their guns because nobody was tracking them.

        You could take the same approach as firearms to scooters by declaring that the identity of a scooter sticks to, say, the scooter's deck. But what *function* would that serve? The function of a rental scooter's id is to track user custody of company property and determine when a scooter needs to be serviced. Once the scooter is brought in for repair the need to track that ID disappears. If you insisted on having an id that persists through the rebuild process it would do something that only bad database designs do: constrain physical operations to serve the record keeping system.

        In my experience every database design can be invalidated by expanding the universe of questions it must answer (or equivalently, processes it must support). This is the problem with identity in the relational model; it's *implicitly* tied to the questions the designer anticipates. That's why UUIDs are such a robust solution to many identifying tasks: their uniqueness is not tied to any particular set of questions you might want to answer, or to any context (i.e., they are unique *between* databases).

    • They come into a shop for a couple hours of repair work

      Hey Anonymous Coward, it would be interesting to see the cost calculations behind this.

      If we assume a "couple hours of repair work" costs the scooter company $200 in labor, parts and overhead expenses then it's likely cheaper to throw the scooter away after its first repair.

  • With that much scooter "turnaround" that just seems ... wasteful.

    -Miser

  • by SuperKendall ( 25149 ) on Friday March 01, 2019 @10:18AM (#58199158)

    the average lifespan increased slightly to 32 days and the median lifespan to 28 days.

    I can believe the scooters would last that long before being pulled for servicing.

    But I can't believe scooters after a month are so trashed you cannot repair them and get them back out in the field. Even with rough use and vandalism, you should be able to have the units in service for at least half a year...

    That doesn't account for outright theft but I don't think so many are taken outright is affects the overall stats.

    • by AmiMoJo ( 196126 ) on Friday March 01, 2019 @10:25AM (#58199196) Homepage Journal

      Even half a year wouldn't be enough to recoup costs, and you have to include the price of maintenance too.

      My guess is that they are either hoping to monetize the location and user data they gather, or the whole thing is just a scam to suck up investment money for a few years before it all collapses.

    • and you have to worry about things like the breaks not being properly maintained. For one thing a skilled mechanic is going to make at least $12/hr and probably not going to work "gig" economy. You could do it with unskilled labor but you risk maintenance not being done. If you use gig economy piece workers they're likely to cut corners (since they're doing it for temp work to make ends meet they don't care about long term job prospects).

      As it stands Bird and Lime shift the blame for failed maintenance
    • The city of Oakland has to remove the scooters from urban lakes on a regular basis.
    • by kriston ( 7886 )

      In the urban neighborhood where I work we have had scooters from at least five different companies for at least a year. They all look like they've been in a war zone and repaired multiple times.

      This is horrible for the environment, not to mention an eyesore for the neighborhood.

  • by Anonymous Coward on Friday March 01, 2019 @10:22AM (#58199176)

    I'm thinking of starting a shoe sharing service so people can walk from one place to another without getting their socks dirty. They'll have an app where they can locate a nearby pair of shoes in their size.

    I'll call it "Shoeme" or something stupid like that.

    Taking investment money now....

    • Re: (Score:2, Insightful)

      by Anonymous Coward

      I'm thinking of starting a shoe sharing service so people can walk from one place to another without getting their socks dirty. They'll have an app where they can locate a nearby pair of shoes in their size.

      I'll call it "Shoeme" or something stupid like that.

      Taking investment money now....

      You should call it 'Shü'

    • Your ideas are intriguing to me and I wish to subscribe to your newsletter.
    • Re: (Score:3, Insightful)

      by josh s ( 5835034 )
      Oh do please bring this to Atlanta where apparently the City Council's ONLY data point regarding whether to allow these abominations to be scattered all over the commons is that "people have ridden them X times". I had a lengthy email back and forth with my city councilman asking about cost-benefit analysis, how the city was going to pay for the "enforcement" of the new rules they passed, and what I got back was "i support them because if you ask the people who ride them, they like them". I pointed out th
      • Atlanta seemed to have a lot of potential when I moved there in 2016... after a year living in tree-covered Midtown, even with work being within walking distance, I had to go. That city is a mess...

  • by Anonymous Coward

    Crypto mining economic are far worse... crypto entices miners with "today's profit" without telling them about the exponential decay in revenue. It always looks like you can ROI in x time but the reality is that you never ROI..

    Ima buy all the scooters I can though because there's probably going to be a mad rush into scooter rental because on paper it looks awesomely profitable.

    Now, where did I put those tulip bulbs?

  • by Anonymous Coward

    The bubble will pop and your ass goes pop too as you crash them.

  • What was the point of these free scooter programs anyway?
    • by oic0 ( 1864384 )
      They aren't free. They charge. The article is just arguing that the people in these cities are so crap that the scooters are dead before their purchase price is covered.
  • In other news (Score:4, Insightful)

    by cascadingstylesheet ( 140919 ) on Friday March 01, 2019 @11:13AM (#58199432) Journal
    Public bathrooms get gnarly ...
  • unnecessary buzzword (Score:4, Informative)

    by Iamthecheese ( 1264298 ) on Friday March 01, 2019 @11:41AM (#58199486)
    There's nothing special going on here. This isn't some kind of new economy. Things have been rented for millennia. These aren't shared scooters. They're rental scooters.
  • by NotSoHeavyD3 ( 1400425 ) on Friday March 01, 2019 @12:06PM (#58199622) Journal
    Never lend or rent anything you arenâ(TM)t willing to have destroyed and if you do expect that to happen unless you do something to prevent it. In other words people suck.
  • by the_skywise ( 189793 ) on Friday March 01, 2019 @12:10PM (#58199648)
    Both Bird and Lime should know this data already themselves and yet they're still jumping into markets (ergo losing more money that they'll never recoup).
    Either both companies have moronic leadership or there's some other scam going on. That includes all the weird (and oddly almost always negative) attention in the press these things get.
    • by josh s ( 5835034 ) on Friday March 01, 2019 @12:52PM (#58199896)

      Both Bird and Lime should know this data already themselves and yet they're still jumping into markets (ergo losing more money that they'll never recoup). Either both companies have moronic leadership or there's some other scam going on. That includes all the weird (and oddly almost always negative) attention in the press these things get.

      How long has Uber been bleeding a billion dollars a quarter? It makes sense because the end game is to sell the money losing business at a profit to the unwitting public in an IPO. You know, like Uber, that is supposedly going public with $120 billion valuation all the while losing $4 billion a year. Unfortunately for these scooter companies, I don't think their total sales will ever scale like Uber and people might think twice about buying a rental service that tries to charge people to replace walking.

  • by Zorro ( 15797 ) on Friday March 01, 2019 @12:51PM (#58199888)

    There are these things called Bicycles.

    Great for short trips, No DRM, and fairly inexpensive.

    But you might have to move your legs a little and go less than 5 MPH on a sidewalk.

  • REPAIR (Score:5, Insightful)

    by darkain ( 749283 ) on Friday March 01, 2019 @01:35PM (#58200090) Homepage

    Did the author stop to consider that they directly list "repair costs". Maybe, just maybe, when a scooter is taken out of circulation for repair, then put back in, that it is assigned a new ID number?

  • Sad but true testimony against humans in general: they tend to not have respect for things that they don't own.
  • The business model is not getting the money from passengers, is from cronyism getting government grants.Your money.
  • It's not the DotCom era over again, this is NEW! Yeah, they lose money on each unit, but they will make it up with volume! It's how you can lose billions of dollars buying customers, and then become a hundred-billion-dollar valued entity!

    Silicon Valley has "rediscovered" that you can sell and infinite number of $1.00 bills for $0.90 each...

  • by Koreantoast ( 527520 ) on Friday March 01, 2019 @03:08PM (#58200742)
    The same blog did a pretty good look at the business model [substack.com] behind the scooters. At current utilization rates, scooters need to survive at least six months for companies to recoup their costs. Clearly that's not happening now. Which means either the companies need to buy scooters at a cheaper price, build a better scooter at the same price, or somehow increase utilization per unit. I don't think they have a clear path forward with any of those, at least not enough to make the numbers work.
  • The early scooter designs had some issues, so Bird changed the design significantly (different battery pack layout is the most obvious), so it is probably just a design changeover, not reflective of the scooter actual durability.

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