Bird, Lime and disruption

Two young companies are offering electric two-wheelers for hire via mobile apps to encourage smart, affordable mobility for short distances

Bird and Lime — the two young companies offering electric two-wheelers for hire via phone apps — are expanding rapidly into new regions, and diverse products. Their vehicles may be referred to as e-scooters, but are not scooters as we understand them in India: They are really wide skate boards with a tall handle for navigation, also referred to as skating scooters. You can pick up one from anywhere (there are no designated collection points) and leave it anywhere too after your ride, as they are dockless vehicles.

Both the companies have already achieved unicorn status, with valuations of over $1 billion. In the US, where the companies have their largest fleets, there are attempts to control their units on the road: users can be seen riding on pavements, frequently without helmets — people have been injured — and there is the issue of public spaces being used for parking. According to a Bloomberg News report, nine people who were injured by these scooters filed a call-action lawsuit on October 19, in Los Angeles County Superior Court. The two start-ups — as well as their manufacturers Xiaomi and Segway — are accused of gross negligence.

A Bird will likely be seen in India soon, given that the company is seeking someone to take on the role of “fleet lead” for India, based in Mumbai, and also a manager, as per postings on its website. The company is seeking fleet leads for 30 very diverse locations spanning Washington, Toronto, Sydney, Seoul, Tokyo, Hong Kong and Hanoi. 

Lime is present in dozens of US cities, and also in about 16 cities outside the US, in Mexico, Canada, Europe and New Zealand, among others. It offers e-scooters and e-bikes, and is making an entry into the car-sharing business in the US. Its aim is to offer “smart, affordable mobility” and “reduce dependence on personal automobiles for short-distance transportation”.

Both highlight their environment-friendliness. Investors in Lime (Neutron Holdings) include Google’s parent Alphabet, Uber and Fidelity Investments, while Bird is backed by Sequoia Capital and Ashton Kutcher’s Sound Ventures, among others.

There are numerous companies entering the electric two-wheeler segment. From zero e-scooter sharing companies in 2016, there were as many as 25 by September 2018, according to BloombergNEF. About half of these companies are headquartered in the US.

In India, one view is that the electric mobility movement should be led by two-wheelers and three-wheelers, with battery swap stations (that swap the spent battery with a fully-charged one) rather than battery charging stations providing speed and efficiency.  

Perhaps there will be no time to finalise a policy — disruption usually does not seek a licence. An indication of how things may evolve comes from this message on Bird’s website, which asks city officials to contact the company if they wish to partner: “We work closely with cities to help make transportation better and more environment-friendly. If you are a city official and would like to partner with Bird, please contact our city relations team…”

Perhaps regulation of services will follow the launch of services, as was the case for Uber taxis in many jurisdictions.

Earlier this month, Ford Smart Mobility, a subsidiary of Ford Motor, acquired an e-scooter sharing company Spin. “They do not launch without permission”, the press statement announcing the acquisition stated. 

The author is the editor, Global Policy for BloombergNEF. She can be reached at vgombar@bloomberg.net