The article is light, but watch the video for more detail.
The fundamental numbers don’t really add up because scooters don’t bring in enough money to cover their cost. Ride-sharing is wildly unsustainable, and if the business continues on its current path, it’s entirely possible that these scooters will end up in a mass graveyard like those viral photos from China.
The video reveals some interesting numbers. Each scooter costs over $500 for the companies to purchase. In order to recoup the purchase cost, these companies need these scooters to run for 5 months or more, but they are finding that they only last 30 days if they are lucky. Quartz crunched some numbers and found that on average, each scooter only brings $67 in revenue for the company.
The whole model just seems unsustainable. Like the rest of the rideshare industry, these companies are hemorrhaging investors' money, and it's not clear how they can turn that around.