In an article for Bloomberg, Navigant Research offers insight on potential challenges with profitability
has expanded its electric scooter sharing service, Coup, to Paris, where the battery-powered two-wheelers could help to ease the congestion and pollution the city struggles with, according to a Bloomberg article.
The venture aims to bring up to 600 electric scooters to the city, where licensed drivers can use a smartphone app to book a scooter and cruise for up to 60 miles on a fully charged battery.
While the move is in step with changing consumer habits and industry disruption, it might be up against some challenges.
Ryan Citron, research analyst at Navigant Research, told Bloomberg that it could be difficult to profit from the shared fleet of battery-powered scooters because of the higher cost of electric models.
“Programs need high membership rates to recover upfront investment,” he said.
Coup will also be competing directly with Cityscoot, which has a fleet of 1,000 two-wheelers and has been in operation since October.