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Charging electric scooters is a cut-throat business

theatlantic.com

231–240 of 243 posts

Re: Charging electric scooters is a cut-throat business

#231
post #173
post #121

Earlier quoted context omitted.

And, from reading the article, the cost of the electricity comes out of the "finders fee". So those that charge them receive $5-$20 each, minus their cost of electricity to recharge them. So if most scooters only receive the $5 "finders fee" then Bird is paying a flat $5 per scooter for finding, recharging, and returning the scooters. It costs $1 to 'unlock' and $0.15/minute after that. So a $5 payment requires: 1 un…

>And, from reading the article, the cost of the electricity comes out of the "finders fee". So those that charge them receive $5-$20 each, minus their cost of electricity to recharge them. To be picky, since these chargers/gathererers are largely teens living with their parents, the cost for recharge comes from the household utility bill (not paid by the kid). Surely it is a trifling amount, but to it you must sum th…

> Surely it is a trifling amount, but to it you must sum the miles with the car/minivan used for the search and pickup

I suspect the cost of driving easily overshadows the cost of electricity, considering that even inflated California electricity rates price a kWh (of which these scooter batteries hold about one quarter) about the same as the incremental cost of driving one mile.

Whether it's trifling depends on how far they have to drive for each scooter. That cost is sunk if they "recover" it or not, unlike with the electricity. According to the article, the company has made it a bounty-hunting model, so even if the total area is only a few miles across, just getting there is no guarantee.

Re: Charging electric scooters is a cut-throat business

#232
post #161
post #154

Earlier quoted context omitted.

Bixi bike rental system exists for many years now. The only city as far as I know that is not profitable is Montreal, ironically the city of bixi headquarters and where it started from. The same system, under other names, exists in other major cities around the world. They have even more expenses and infra to support. They need to install and dismantle docking stations every season, which requires cranes and trucks i…

Bixi made a 3 or 4 year go of it in Toronto before exiting the market. So it could be that all their locations (except Montreal) are profitable because they exit markets where they are losing money (except Montreal). If that's true it raises the interesting question about why it works in some cities and not in others, since presumably the operations by Bixi are equally competent in the various places they open.

Sometimes founders keep a home city alive despite being unprofitable as a symbol if nothing else. Like when clothing companies have expensive flagships in NYC that are more about marketing than being stores.

Re: Charging electric scooters is a cut-throat business

#233
post #34

Earlier quoted context omitted.

Never thought about that. Do they really do different titles for different entry points? The webarchive supports that this has always been the title. https://web.archive.org/web/*/https://www.theatlantic.com/te...

For a popular article that will earn a lot of links its also a good strategy to change the title multiple times during its viral phase. Since many people/cm systems link with the title tag it means you get a wider mix of anchor text which can help the article to rank for a more diverse set of key phrases

I've noticed New York Times does this too.

https://mobile.twitter.com/nyt_diff

Re: Charging electric scooters is a cut-throat business

#234
post #69
post #63

Earlier quoted context omitted.

Many of these companies make a lot more sense to me if I think of the founders(+select early employees) as the company, the company as the product, the VCs as the customer, and product+customers as the sales pitch.

Thanks for this very interesting point of view, a company as a product. If you look this way, then a lot of stuff makes sense in the VC/Start-Up world.

Dan Lyon’s Disrupted describes the experience of working at one such startup. It’s brilliant, funny and brutal.

Re: Charging electric scooters is a cut-throat business

#235
post #179

Earlier quoted context omitted.

It seems to me that taxing something based on its use is a pretty much just a way to set up exactly these kinds of loopholes that continually need plugging. Instead of taxing gasoline to help fill in the road budget, why not tax vehicles based on actual road usage, and their size and weight? Then you don't have all of the "electric cars and bikes don't pay gas taxes" stupid debates. An electric car uses just as much…

> Instead of taxing gasoline to help fill in the road budget In the UK we don't. We tax gasoline because it has negative externalities (same as us taxing cigarettes and alcohol). It goes into the central budget that's run by Phillip Hammond in the UK. Out of that, and income tax, national insurance, VAT, alcohol tax, etc, he funds the national road network, trident renewal, the state pension, the nhs, etc. Some of th…

> We tax gasoline because it has negative externalities (same as us taxing cigarettes and alcohol).

This is contradicted by the difference in taxation for diesel fuel and heating oil (which is also the case in the US as well). Or used for generating electricity, as you point out.

I think that like many things in government, there are multiple reasons for taxing gasoline; negative externalities is one of them, but acting as a proxy for usage fees is another.

In the US at least, the federal gas tax is specifically earmarked for transportation expenses (https://en.wikipedia.org/wiki/Highway_Trust_Fund), which indicates that it's explicitly intended as a proxy for usage fees.

> Until relatively recently that's not really been possible (ANPR makes it possible), hence taxing fuel as a proxy.

Yes, but times change, and it is possible now. Lots of people bring up the problem of not collecting gas taxes to fund roads when electric cars usage grows. So every time someone brings that up, I suggest a fairly simple solution. Electric cars also weren't previously possible, but they are now, so rather than complaining about how we won't be able to fund the roads, how about charging more effectively for road usage.

> Given that the cost of a road is wear and tear (which a pedestrian or bike causes pretty much zero) > > Charging more than £5 a year for even the most extreme cyclist wouldn't make any sense.

I addressed this in my comment, indicating that it doesn't make sense to charge usage based amounts for cyclists:

> while a bicycle uses so much less (and pretty much equivalent to any use of public space like walking, using a scooter, etc) that it makes the most sense for that to just be accounted for out of the general fund.

There is the cost of constructing the roads in the first place, and wear and tear from weather, but that can be adequately accounted for out of the general fund; and when I say that, I mean the taxes collected at whatever level of government is responsible for paying for road maintenance that are not based on road usage at all, such as income tax, sales tax, VAT, property tax, or the like.

As someone who lives in the Northeastern US, I know very well that it isn't just vehicle weight that leads to road wear and tear; I've ridden on dedicated bike paths that were unmaintained, and frost heaves and roots of trees cause quite a lot of trouble, though it does take a lot longer for it to become unusable than roads used by cars and trucks.

Anyhow, I think we're mostly in agreement here. It is absolutely possible to do more effective taxation of vehicles based on their direct costs to infrastructure as well as other externalities.

> Because damage increases at 2^4, 1 mile car does about 1/100,000th of the damage of a lorry. A bike and car is a similar ratio - therefore if you charged a bike 1p per mile, you should charge a car £1000 a mile and a lorry £100 million a mile.

The damage per axle is proportional to the weight per axle to the fourth power. You multiply that by the number of axles to get the total amount of damage. Also, tandem axles do substantially less damage than single axles. This ends up at being a factor of about 5,000 between a passenger car and a truck, not 100,000.

It's still a big difference, and it's not accounted for by gas taxes, tolls, or vehicle registration fees, at least in the jurisdictions I've checked. Most of them seem to just go up proportional to the weight or the number of axles, not the fourth power of the weight per axle.

If you want to do it right, you'd charge fees based on equivalent single axle load times mileage, plus a congestion factor in congested areas based on the area taken up by the vehicle, times the amount of time it's within the congested area, times a time-varying congestion factor. And of course a carbon tax which covers all forms of carbon emission, and possibly a particulate emission tax that varies with density.

But despite how obvious it all sounds, it would be somewhat expensive to implement, and would face huge political opposition from industries and individuals who are effectively subsidized by paying into the highway systems way less relative to their usage than other users.

Re: Charging electric scooters is a cut-throat business

#236
post #179

Earlier quoted context omitted.

It seems to me that taxing something based on its use is a pretty much just a way to set up exactly these kinds of loopholes that continually need plugging. Instead of taxing gasoline to help fill in the road budget, why not tax vehicles based on actual road usage, and their size and weight? Then you don't have all of the "electric cars and bikes don't pay gas taxes" stupid debates. An electric car uses just as much…

"why not tax vehicles based on actual road usage, and their size and weight?" Because this relies on either odometer readings, which, at least here in the US, you wouldn't be able to say how many miles were driven in one state vs the next. Or it would rely on tracking the location of the vehicle, which is downright creepy and sets off all kinds of alarm bells in people.

Every car is legally equipped with a tracking device known as a license plate.

There are no more toll booths in the state of Massachusetts.

If you travel on a toll road in Massachusetts, your car will be tracked either by E-ZPass transponder, if you opt in to that system (at a substantial discount), or via photographing the license plate and sending you a bill in the mail.

Also, pretty much everyone I know, even the most privacy conscious, carry a tracking device in their pockets at all times. I think that rms may be the only person I've met who I know does not.

Re: Charging electric scooters is a cut-throat business

#237
post #179

Earlier quoted context omitted.

It seems to me that taxing something based on its use is a pretty much just a way to set up exactly these kinds of loopholes that continually need plugging. Instead of taxing gasoline to help fill in the road budget, why not tax vehicles based on actual road usage, and their size and weight? Then you don't have all of the "electric cars and bikes don't pay gas taxes" stupid debates. An electric car uses just as much…

At least in most of the US (can't speak for all 50 states) vehicles are taxed based on weight- a 1 ton pickup will cost more each year to register than a compact car or motorcycle. And what is a better method to tax based on usage than taxing fuel? Do you really want to have to log every mile driven, and submit it to the IRS? Parent poster had a good point, in that this will need to be examined in regards to EV usage…

> At least in most of the US (can't speak for all 50 states) vehicles are taxed based on weight- a 1 ton pickup will cost more each year to register than a compact car or motorcycle

Registration fees and taxes are frequently based on weight; and tolls are frequently based on number of axles.

But the relationship between weight or axles and fees is generally linear, while the actual wear and tear on roads is quartic (to the power of 4) in the weight per axle, times the number of axles. If taxes and fees were properly proportional, there would be a much bigger difference in price between a motorcycle and 1 ton pickup truck, let alone an 18 wheeler.

> Do you really want to have to log every mile driven, and submit it to the IRS?

You can use odometer readings that you collect at annual inspections. I realize that not every state does this, but every state I have ever lived in does; you have an annual vehicle safety and emissions inspection, and at that point they can check your odometer too and include that in the calculation.

You could also use the current automated toll collection systems, which are based on transponder or license plate for those who don't have transponders, for highways and congestion charges for cities, if you want to be able to charge different rates in different areas, and just subtract those numbers from the odometer readings afterwards.

Metering EV charging separately does't really solve the problem. Gas taxes are not in proportion to actual maintenance costs of the roads, and are currently a fixed amount, not tied to the price of gas or inflation, so they don't cover the full costs. If you just applied the same kinds of laws to EV charging, you'd be left with the same kinds of problems.

By not charging proportional to road wear and tear, there is an effective subsidy of those who drive larger vehicles, and in particular commercial cargo transport on the highways, by those who drive smaller vehicles. If you were to change the way vehicles were taxed, the larger vehicles would pay more of the burden, which would mean they might switch to alternatives like train transport, or moving production closer to consumption, or the like.

A similar problem exists in cities and on busy highways used by commuters, where congestion is a substantial externality. There it's the square footage of vehicle footprint that makes the biggest difference.

Re: Charging electric scooters is a cut-throat business

#238

Earlier quoted context omitted.

which they should, don't you think? sometimes being disruptive is the only way to go.

No, because they're just trying to get an exemption for themselves. If they were advocating for a change for all, that'd be better.

you cannot advocate for a change for all if you are the only company in that field. Uber was literally a revolution of transportation. However, as a side effect, the changes you advocate sets a precedence, thus also affects everyone, which was the case in the US. There were a few other companies who also benefited from the changes, such as Lift.

Re: Charging electric scooters is a cut-throat business

#239

Earlier quoted context omitted.

nope, not in Europe. Businesses have to pay a lot more than private residences.

same in US..

I would guess so. However, the original comment I replied claimed that businesses pay even less than private citizens.

Re: Charging electric scooters is a cut-throat business

#240
post #237

Earlier quoted context omitted.

At least in most of the US (can't speak for all 50 states) vehicles are taxed based on weight- a 1 ton pickup will cost more each year to register than a compact car or motorcycle. And what is a better method to tax based on usage than taxing fuel? Do you really want to have to log every mile driven, and submit it to the IRS? Parent poster had a good point, in that this will need to be examined in regards to EV usage…

> At least in most of the US (can't speak for all 50 states) vehicles are taxed based on weight- a 1 ton pickup will cost more each year to register than a compact car or motorcycle Registration fees and taxes are frequently based on weight; and tolls are frequently based on number of axles. But the relationship between weight or axles and fees is generally linear, while the actual wear and tear on roads is quartic (…

> where congestion is a substantial externality

It is, however if you tax people based on congestion they cause, shouldn't you refund them based on congestion they receive?

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