Dara Khosrowshahi, Uber’s CEO has indicated that the company will start focusing on bikes and scooters moving forward. This decision comes in hopes of reducing traffic in the long term.

It is a well known fact that Uber is not yet profitable, so it was impossible to make this decision without raising heads regarding its financial benefit to the ride-sharing giant. Khosrowshahi indicated that although it might seem that the strategy won’t be beneficial in the long-term, it might be the right move to make in the longer term.

On April of this year Uber acquired Jump Bikes, which initiated its involvement in the bike sharing industry. The bikes provided, instead of having brand-specific docks, can be docked onto public racks, giving the service flexibility that might appeal to clients. Similarly, Uber started a partnership with Lime, another bike-sharing provider. They even participated in Lime’s $335 million financing round in July of this year.

Although these services are popular with consumers, bridging the gap with cities and governments has not been so simple. San Francisco recently banned scooters because of alleged safety and traffic concerns. China based companies in the US have also faced roadblocks from officials. In particular, ofo had to lay off most of heir workforce due to issues in the US, and pointed out the country’s obtrusive practices towards a greener future.

All of this could be good news for Uber, who can now make its grip on this market even tighter. However, it is yet to be seen if they will be able to bypass government obstruction.

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