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Following the explosion of carpooling activities, such as Uber and Lyft across the country, motorized scooters arrive in metropolitan areas. With wharf-free companies like Lime, Bird and Ofo each receiving multi-billion dollar valuations, it's time to consider scooters as a respected component of urban transportation.
Initially, bicycle kiosks seemed to dominate the cheap and maneuverable transportation market in densely populated areas. Projects such as Washington D.C. Capital Bikeshare and New York's Citi Bike have been replicated across the country. In 2017, startups Bay Area Spin and Limebike and the Chinese company Ofo introduced new dockless bikes, allowing pilots to start their journey wherever they could find a bike and finish wherever they wanted. Now motorized unmanned scooters have joined bikes without a dock. Cyclists simply need to press buttons to move vehicles rather than pedaling.
Due to the speed with which dockless scooters have become increasingly important in the cities of San Francisco, Washington DC, some local governments have little regulation. However, in Miami, Nashville and Indianapolis city councils responded with orders to cease and abstain.
Despite the enthusiasm of bikers surrounding scooters, legitimate concerns exist regarding safety and aesthetics. By their nature, dockless scooters (and bikes) are left on sidewalks, potentially blocking businesses, pedestrians and traffic. If left in front of the stores, an unsightly buildup of scooters could deter potential customers. Some bikes and scooters seem abandoned and rusty on footpaths and in remote areas of metropolitan areas.
Scooter companies must be held to a high level of responsibility when it comes to ensuring proper parking of their vehicles. Requiring liability insurance and timely removal of unused scooters are two ways to ensure public safety without limiting innovation. But a regulation that punishes companies before they can solve problems will only stifle innovation that could improve these products.
San Jose has demanded that scooter companies offer discounts to low-income residents and award scooters to "communities of concern." in these areas is low. By implementing such restrictions, local authorities indicate that they want to oversee the distribution of scooters. Los Angeles has adopted a policy that encourages, rather than compels, businesses to serve these communities by offering bonus permits for those operating in these areas.
Some cities have limited the number of scooters. San Francisco has set an initial limit of 1,250 and Austin allows 500 scooters per licensed vendor. Although well-intentioned, these ceilings ignore market fluctuations and seasonal factors. Companies have no reason to oversaturate the market, as maintenance and collection costs increase with additional supply. If the vehicles are not used, companies realize lower profits.
For example, Bird Company has implemented a "Save Our Sidewalks" policy that requires scooters to be used at least three times a day to remain in circulation. and the company will pay cities $ 1 per scooter per day to fund new bike lanes and other public transit infrastructure. Cities that set ceilings lose this potential investment.
Competition encourages innovation and lowers prices. Charging high fees to scooter companies disproportionately affects new startups. Dallas has a reasonable fee of $ 808 for an initial business license and $ 21 per vehicle, while Santa Monica charges a $ 20,000 registration fee plus $ 130 per scooter.
Companies want to make sure their scooters do not cause congestion problems because customer satisfaction and profit maximization are the determining factors in any business decision. This is the case in San Diego, where the local government has adopted a laissez-faire approach to the scooter revolution. Without instituting new restrictions, the problems have been reduced. Driving into unauthorized areas was reduced after the police began distributing quotes, and the Lime scooter company began public education campaigns to take people out of the sidewalk and wear helmets.
benefit low-income people who want a job. Someone must move and load these vehicles, creating a revenue stream for residents who are paid to move the scooters out of danger. For example, Bird pays $ 5 to $ 20 per "scooter," allowing entrepreneurs to make hundreds of dollars each night.
With benefits ranging from increased accessibility to reduced emissions, scooters can add value to cities across the country. Ironically, many of the cities that have pushed the most vigorously for environmentally friendly policies also have the strictest scooter restrictions. Regulators should put in place some ground rules and leave the rest to innovation and common sense.
Stephen Vukovits is a contributor to the Economics 21. Follow him on Twitter @svukovits .
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