This was was undoubtedly the year of the electric scooter. Between massive fundraising rounds, lofty valuations and both Uber and Lyft’s entrance into the space, it’s clear these scooters are here for the long haul.
But just because investors have poured hundreds of millions of dollars into these companies in the past year, the electric scooter business is not without its difficulties. In fact, it’s an immensely difficult business with tough unit economics, regulatory challenges on a city-by-city basis, and a ridiculous number of competitors vying for the micro-mobility services market share.
It’s only a matter of time before consolidation becomes the only way to survive and, already, we’ve started to see some early signs of that with Uber’s partnership with Lime, as well as Ford’s acquisition of Spin. Let’s take a look at how the industry got to where it is today.