Uber CEO says cars will take a backseat to bicycles for short-distance trips

Uber’s CEO announced that cars will take a backseat to bikes and scooters in urban areas, as they look to the long term.


August 28, 2018

According to Uber chief, Dara Khosrowshahi, the rideshare company is planning a “shift in emphasis” from cars to e-bikes and scooters for short-distance riders.

The move comes ahead of Uber’s highly anticipated IPO — and as Khosrowshahi admitted, it’ll likely result in short-term financial losses (add it to Uber’s $4.5B loss last year).

Uhh, what’s the point?

According to Khosrowshahi, individual modes of transport are better suited for inner-city travel — and Uber has been making strides in the space.

Uber first added e-bikes in February of 2018, and acquired the bike-sharing company, Jump, for around $200m in April.

Since Khosrowshahi joined Uber, the company has inked deals with Lime, an electric scooter company, and Masabi, a London-based app that will help build what he calls an “urban mobility platform.”

It’s all about the long term

Or so they say. Khosrowshahi admitted that Uber will make less money from bikes than they will from cars, and that Uber drivers will also feel an initial dry spell from users opting for bikes.

But over the long term, Uber’s CEO believes bikes and scooters will help clear congested streets — and allow drivers to focus on longer rides.

And you know what that means: More tickle cash… 

Daily briefings, straight to your inbox

Business and tech news in 5 minutes or less

Join over 1 million people who read The Hustle

Psst

How'd Bezos build a billion dollar empire?

In 1994, Jeff Bezos discovered a shocking stat: Internet usage grew 2,300% per year.

Data shows where markets are headed.

And that’s why we built Trends — to show you up-and-coming market opportunities about to explode. Interested?

Join us, it's free.

Look, you came to this site because you saw something cool. But here’s the deal. This site is actually a daily email that covers the important news in business, tech, and culture.

So, if you like what you’re reading, give the email a try.