Uber to redirect focus to bikes and electric scooters

8336 Uber intends to focus more on its electric scooter and bike business as it says individual modes of transport are better-suited to inner city travel.

Dara Khosrowshahi, Uber’s CEO, believes users will make more frequent, shorter journeys in the future, the <%$Linker:2External<?xml version="1.0" encoding="utf-16"?><dictionary />000link-external Financial TimesFinancial Times website linkfalsehttps://www.ft.com/content/986d878a-a7c4-11e8-8ecf-a7ae1beff35bfalsefalse%> reports.

"During rush hour, it is very inefficient for a one-tonne hulk of metal to take one person ten blocks,” he says.

Uber’s Jump electric bikes are now available in eight US cities such as San Francisco and Washington DC, and are set to launch in Berlin.

The ride-sharing company has also joined forces with electric scooter company Lime.

Khosrowshahi recognises that Uber makes more money from a car journey than a bike trip - but says this would be offset as users engage with the app more regularly for shorter journeys.
"We are willing to trade off short-term per-unit economics for long-term higher engagement."

The move comes as Uber announced it was to supply its proprietary self-driving system to <%$Linker:2External<?xml version="1.0" encoding="utf-16"?><dictionary />000link-external Toyota Sienna MinivansUber website linkfalsehttps://www.uber.com/newsroom/uber-toyota-team-self-driving-cars/falsefalse%>. “Rather than owning and operating the fleet of self-driving vehicles, these minivans will be owned and operated by an agreed upon third party, a new business model for Uber,” the company said in a statement.