Privately "Profiting" from Public Space

The Swift Rise of Micromobility

Do you enjoy having the option to use an affordable, convenient e-scooter or shared bike? Would you feel the same if you owned the shop or property where they are often left abandoned or if you were a street vendor forced to pay fees that micromobility tech companies are immune to?

In 2008, Washington D.C. followed the lead of Paris' bikeshare experiment and launched the United States' first bike share program, BikeShare DC with 120 bikes at 10 stations. This was the introduction of micromobility in the U.S.

From that time, micromobility has boomed and has grown to include scooters, electric scooters, and motorized bikes in countless cities across the country.

How They Work

With docked bike share programs, commuters can unlock a bike from a dock with their smart phone. They enter their payment information and the bike is unlocked from the dock. The rider can then use it and return it to another dock close to their destination, thereby saving time and money while also enjoying the benefits of being outdoors and getting a little bit of exercise.

Today, there are e-scooters that are both docked and dockless using the same type of technology. Users are able to use scooters from companies such as Bird and Spin by using a mobile app to find the nearest scooter, verify their identity, unlock it, and pay a per-mile charge.

For many traversing busy city streets, these options are time-saving conveniences but not everyone is pleased with the way these devices are affecting their cities.

A Booming Disruption

A 2018 report by the National Association of City Transportation Officials revealed that 84 million trips were taken on micromobility devices - nearly double the amount of the previous year.

The report also revealed that the shared bikes of the past have largely been replaced by e-scooters.

This technology has grown at a pace that is two to three times faster than car-sharing or ride-hailing, and stakeholders have invested more than $5.7 billion in micromobility, according to McKinsey. They point out that investing in these technologies is more lucrative than buying a car since an e-scooter costs roughly $400 and will pay for itself within four months, vs. purchasing a car which would take years to break even.

Since this technology has grown so exponentially, many tech companies are able to capitalize on the trend without much in the way of regulations or rules, taking advantage of public space to gain private profit and disrupting local businesses. 

The Issues With Dockless Scooters

While the idea of micromobility is a novel one - it cuts down on pollution, decreases commute times, is affordable and accessible - there are a number of issues that today's municipalities are faced with.

Safety

Scooters and electric bikes generally move faster than bicycles and slower than vehicles which means they do not belong on the roadways or in bicycle lanes, and certainly not on sidewalks where pedestrians walk. So where should they go?

Since micromobility has grown so quickly, cities have been unable to adopt infrastructure solutions that keep up with the pace, resulting in accidents and injuries.

Additionally, since these are unmanned devices, there is no way to enforce safety options such as helmets or knee-pads in the event of an accident.

Unsightliness

Increasingly, these devices are being found abandoned or destroyed - sometimes termed "litter bikes" by the locals - evoking outrage from many citizens. Scooters and bikes that block pedestrians on sidewalks and public places are sometimes destroyed just because they are aggravating to individuals who don't appreciate having them litter the streets and walkways.

Shops that end up with scooters blocking the doorways or littering the sidewalks in front of their doors is just one way these programs affect local businesses.

Inequity

Food carts, for example, must obtain licenses and pay fees to operate to take up public space. However, micromobility companies are not currently required to obtain those same kinds of licenses to operate and take up public space.

Additionally, food carts and street vendors are always occupied by the owner or an employee, ensuring that a liable person is always available. These occupants make sure their carts or stations are attractive and purposeful. Failure to comply with requirements can result in anything from fines to permanent shut-downs. 

Similarly, newspaper boxes take up public space but are stationary and don't cause a public nuisance. 

If local businesses are required to pay for licenses and maintain certain standards, why are these tech companies not held to those same requirements? How can local governments improve their infrastructure to accommodate micromobility without introducing fines, fees, and penalties?

Possible Solutions

Some cities have outright banned the concept of micromobility despite its huge potential, because they have seen the backlash that resulted from adopting the programs and because - similar to services like Uber and Lyft - these companies invade cities and leverage the lack of regulations to make a healthy profit before regulations are established.

However, there are ways that the micromobility industry can work with localities to level the playing field and resolve to make everyone happy.

Approach City Leaders First

Before launching a startup, get yourself on the agenda for the next city council meeting or talk with city planners and discuss what you want to do. Determine what some of the city's pain points are when it comes to traffic and conjestion and be prepared to illustrate how your startup can help alleviate some of these pain points.

Working with the city will likely contribute to a more seemless operation that benefits everyone.

Share Data

If tech companies work with local municipalities to share data such as useage rates, parking patterns, curb utilization, and accident rates, these cities will be more able to adapt and shift with emerging trends and develop mutually beneficial regulations. 

Pilot First

Rather than jumping on the bandwagon and riding the micromobility gravy train, adopt a plausible pilot program that is non-invasive and provides a limited number of devices for use. 

Ultimately, the micromobility industry isn't going anywhere so it's up to today's tech companies to work closely with local government to develop strategic reciprocal relationships that serve to enrich the lives of citizens and communities.

Likewise, governments will need to revisit existing laws and regulations and create new ones that allow for entrepreneurs to venture in the micromobility industry while also providing a safe, effective, and attractive way for commuters to use it.