Aug 27, 2018
Uber 'to focus on bikes over cars'
Uber says it plans to focus more on its electric scooter and bike business, and less on cars, despite the fact it could hurt profits. Its Jump electric bikes are now available in eight US cities, including New York and Washington, and are soon launching in Berlin. Mr Khosrowshahi admitted that Uber makes less money from a bike ride than from the same trip in a car, but said this would be offset as customers used the app more frequently for shorter journeys. "We are willing to trade off short-term per-unit economics for long-term higher engagement," he told the FT. He also acknowledged that Uber drivers could lose out from the plan, but said over the longer term drivers would benefit from more lucrative longer journeys. Revenue from its taxi business is rising but the cost of expansion into new areas such as bike sharing and food delivery has meant losses have grown rapidly.
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