The future is electric: how bike-sharing and rentals startups are trying to crack unit economics

11 March 2019 10:24 PM GMT

For every rupee earned, bike-sharing companies are spending Rs 3 just to stay afloat. Some are now turning to electric to drop beat the petrol engine that is guzzling their profits.

While bike rentals – a $300 million market in India - seem to be working, the point-A-to-point-B solutions or last-mile mobility, a $5 billion market, is a cash burner for most two-wheeler mobility companies.
A to B solution,” a source in a top mobility company told YourStory on condition of anonymity.
Bike taxi startup Rapido has become popular with younger commuters, but the company is still waiting for regulations to change in several states where it operates.
He adds that while the company has done very well with gasoline vehicles, the operational structure was not sustainable for the industry in the long run: “With electric vehicles, the investments are low and the returns are high.
So, at Mobycy, we are driven by the vision of turning India into a greener city via smart, mobility solutions.

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