Uber To Introduce Electric Bike & Scooter Service; Partners With Lime Electric

It is to be noted that by electric bikes, the company means the vehicles which we commonly refer to as a 'scooty'. Also, these two-wheelers will be ridden by a single person just as in rental services.

The Financial Times shares that the new move from Uber has been initiated even while knowing that it will affect their current profits. However, the company firmly believes that this will open more business opportunities in the coming years.

Head of Uber, Dara Khosrowshahi shared that individual modes of transport are better suited for inner-city travels and also for shorter yet frequent journeys.

"During rush hour, it is very inefficient for a one-tonne hulk of metal to take one person 10 blocks. Short-term financially, maybe it's not a win for us, but strategically long term, we think that is exactly where we want to head", he said.

Khosrowshahi has also confirmed that the company will make lesser money through two-wheelers in comparison to a same-scale car ride. In fact, the company has lost 4.5 billion dollars (around Rs 317 crore) last year. Though revenue has increased a lot currently, the cost of expansion into new fields such as food service and bike sharing is quite high.

Thoughts On Uber Concentrating More On Two-Wheelers

The new business approach by Uber is currently limited to a few major cities in the US and Europe, where theurban commute is a big challenge to working individuals. Meanwhile, there is no news whether the system will ever come to India and we do not expect it to either. However, it is good to see that Uber is shifting towards an eco-friendly path to curb the rising traffic problems.