It’s been hard to miss the scooter startup wars opening fresh, techno-fueled rifts in Valley society in recent months. Another flavor of ride-sharing steed which sprouted seemingly overnight to clutter up sidewalks — drawing rapid-fire ire from city regulators apparently far more forgiving of traffic congestion if it’s delivered in the traditional, car-shaped capsule.
Even in their best, most-groomed PR shots, the dockless carelessness of these slimline electrified scooters hums with an air of insouciance and privilege. As if to say: Why yes, we turned a kids’ toy into a battery-powered kidult transporter — what u gonna do about it?
An earlier batch of electric scooter sharing startups — offering full-fat, on-road mopeds that most definitely do need a license to ride (and, unless you’re crazy, a helmet for your head) — just can’t compete with that. Last mile does not haul.
But a short-walk replacement tool that’s so seamlessly manhandled is also of course easily vandalized. Or misappropriated. Or both. And there have been a plethora of scooter dismemberment/kidnap horror stories coming out of California, judging by reports from the scooter wars front line. Hanging scooters in trees is presumably a protest thing.
Scooter brand Lime struck an especially tone-deaf tech note trying to fix this problem after an update added a security alarm that bellowed robotic threats to call the cops on anyone who fumbled to unlock them. Safe to say, littering abusive scooters in public spaces isn’t a way to win friends and influence people.
Even when functioning ‘correctly’, i.e. as intended, scooter rides can ooze a kind of brash entitlement. The sweatless convenience looks like it might be mostly enabling another advance in tech-fueled douche behavior as a t-shirt wearing alpha nerd zips past barking into AirPods and inhaling a takeaway latte while cutting up the patience of pedestrians.
None of this fast-seeded societal friction has put the brakes on e-scooter startup momentum, though. Au contraire. They’ve been raising massive amounts of investment on rapidly inflating valuations ($2BN is the latest valuation for Bird).
But buying lots of e-scooters and leaving them at the mercy of human whim is an expensive business to try scaling. Hence big funding rounds are necessary if you’re going to replace all the canal-dunked duds and keep scooting fast enough for the competition.
At the same time, there isn’t a great deal to differentiate one e-scooter experience over another — beyond price and proximity. Branding might do it but then you have to scramble even harder and faster to create a slick experience and inflate a brand that sticks. (And it goes without saying that a scooter sticky with fecal-matter is absolutely not that.)
The still fledgling startups are certainly scrambling to scale, with some also already pushing into international markets. Lime just scattered ~200 e-scooters in Paris, for example. It’s also been testing the waters more quietly in Zurich. While Bird has its beady eye on European territory too.
The idea underpinning some very obese valuations for these fledgling startups is that scooters will be a key piece of a reworked, multi-modal transport mix for urban mobility, fueled by app-based convenience and city buy-in to greener transport options with emissions-free benefits. (Albeit scooters’ greenness depends on what they’re displacing; Great if it’s gas-guzzling cars, less compelling if it’s people walking or peddling.)
And while investors are buying in to the vision that lots of city dwellers are going to be scooting the last mile in future, and betting big on sizable value being captured by a few plucky scooter startups — more than half a billion dollars has been funneled into just two of these slimline scooter brands, Bird and Lime, since February — there are skeptical notes being sounded too.
Asking whether the scooter model really justifies such huge raises and heady valuations. Wondering if it isn’t a bit crazy for a fledgling Bird to be 2x a unicorn already.
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