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The Attack of the Scooters

Companies providing cheap and efficient personal transportation on-demand are in the news recently:
Be it raising venture capital by the truckload, drawing the ire of local governments and pedestrians, or being the new frontier in the battle of ride-sharing giants - young companies like Bird, LimeBike, Jump and more mature ones, like Scoot, are in the spotlight.

All are providing some variation of an on-demand personal transportation service, each with a twist:

  • Bird - electric razor scooters
  • LimeBike - electric razor scooters and bicycles
  • Jump - electric bicycles
  • Scoot - electric mopeds

A lot was written trying to analyze this "last mile" transportation services trend, focusing on financials and urban impact.

We used our consumer spending analytics application to get some insight on these services from a panel of over 3 million credit and debit cards.

Over the last 6 months, LimeBike and Bird deployed their massive war chests to spur growth in customers and total dollars spent:
scooters---customers-last-6-months

scooters---total-spend-last-6-months

The above graphs show a more than 10X growth in 6 months.

Average transaction amount, on the other hand, has been decreasing for LimeBike, Bird and Jump.
Only Scoot Networks, the more established businesses, saw its average transaction amount grow:
scooters---average-amount-last-6-months

Scoot does offer a monthly subscription model which pushes the average transaction amount up compared to the other three businesses.

Specifically, the average amount per ride at Bird and Jump is now about $3. This implies an average ride time of about 13 minutes, which is lower than some of the analysis published here.

LimeBike does better with an average of about $5.

Of course, during this time of massive growth, we need to assume a lot of "subsidized" rides, where new customers are taking advantage of promotional prices.

Do these services come at the expense of car ride-sharing apps like Uber and Lyft?
No. According to our data, customers who used a scooter or bike service spend significantly more per customer on Lyft and Uber, than the average customer:
spend-per-customer-on-ridesharing-for-scooter-customers

The above graph shows that spend per customer at both Uber and Lyft is higher for customers of the four mobility companies than for the average customer. Specifically, Scoot and Jump customers spent twice as much or more on Uber and Lyft than the average customers. The recent Uber acquisition of Jump makes a lot of sense!

In fact, there is very significant overlap in the customer bases of the two groups of businesses - ride-sharing and personal mobility:
lyft-customer-overlap-with-scooters
The above graph shows significant customer overlap between Lyft and Scoot, Jump and Bird. 72% of Lyft customers also spent money on Scoot and 59% also spent money on Jump.

uber-customer-overlap-with-scooters
The above shows significant customer overlap between Uber and all four mobility companies with about 70% of Uber customers also spending money on each of the personal mobility services.

For the time being, the data suggests that these new entrants on the transportation scene are meeting a real need and are catering well to the large customer bases of Uber and Lyft.
Only time will tell which of these innovative companies will survive and thrive, and which will crash and burn (or maybe splash and sink?).

Learn more about consumer spending analytics with TXN.

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