Electric Scooter Sharing Wars: Big Players Granted New Permits, Who Will Stand Tall?

26

September

2019

5/5 (1)

Big cities across the US — and steadily more cities across the rest of the world — have experienced an unimaginable influx of this new, fashionable, yet relatively dangerous mode of a ‘futuristic mobility’ sharing service. Electric scooters. Electric scooters, and especially the people utilizing them, are surely altering the way we commute on a daily basis. Where governments and politicians have spent years debating on how to implement and encourage ‘cleaner’ and ‘greener’ mobility in cities, a few Silicon Valley start-ups took action without hesitation. These start-ups are known to be battling each other for ownership of the first mile (the distance between a transportation hub and someone’s starting point) and last-mile (the distance between a transportation hub and someone’s final destination).

Where the aim was first to eliminate more cars downtown and cut on peoples’ commuting times, the introduction of these two-wheeled electric scooters has created huge debates and immense competition; locally and slowly globally. What about the safety of others? What about the image of the city? Are scooters not too dangerous? Won’t it ruin the views of certain areas? Understandable, as many go by the saying of “don’t be gentle, it’s just a rental’. Clearly, governments and cities have other priorities than sustainable mobility. Understandable for sure, considering the fact, 11 people have been killed on electric scooter sharing services in the past 14 months. But then why not work on safety regulations in order to stimulate a more sustainable form of mobility, rather than banning a seriously potential initiative completely.

Cities were overwhelmed by the concept at first, as start-ups rolled out their scooters into busy cities. They seemed to be on the verge of revolutionizing the way people would commute to and from work (first and last mile) and around the city. They also seemed to become big players in sustainable mobility solutions in city centers. However, local governments were definitely not having much of it. Permits of only a year were granted to two players early 2018 (in the San Francisco Bay Area), allowing each to only operate a small number of scooters, speed limits were forced to be adjusted, and new, smaller entrants were really struggling big time; causing them to move to other cities or towns where the demand was significantly lower. Coincidentally though, just yesterday (September 25th, 2019), the San Francisco Municipal Transportation Agency approved four companies for operating their electric scooters within one of the world’s most expensive cities.

Jump, Spin, Bird, Lyft, Lime, Scoot. You name it, the list goes on and on and on. Even Uber is playing the game now. However, only four players — Jump, Lime, Scoot, and Spin — have been granted a one year permit to role out 1,000 scooters, with the option to expand to 2,500 scooters, in the San Francisco Bay Area — the hub where the whole hype started. Should scooters, I mean the people on scooters, misbehave (leaving them laying on the ground, parking them in the middle of a sidewalk, parking them in front of stores or inside metro stations, or even ditching them in the wild waters of the bay) they operator will be asked to leave the city immediately, with their entire fleet. Where the governments initially wanted to introduce a ‘greener’ way of commuting, they are now pushing back the growth potential of many of these mobility start-ups for safety and city security reasons.

Taking this form of future mobility outside of the Bay Area, and across the globe, electric scooter sharing start-ups are heavily dependent on the approval from individual cities and local governments. Governments regulate the entrance of such players and enforce data-sharing — this has become a strict requirement for the service start-ups to receive permission for deploying scooters. Whether the electric scooter companies are willing to give in to these rules and regulations, is a bittersweet question the near future will undoubtedly answer for us. Or will it be easier for local, similar initiatives to grant permits in ‘their’ cities and country in order to beat the Silicon Valley start-ups to it?

Looking forward, what will the future bring? The bigger players are granted permits for a year in the area they were founded in. Slowly, they’re stepping out of their zones and expanding across the globe, aiming for similar permit grants in order to grow exponentially and really offer the world a convenient and sustainable mobility service. Undoubtedly, the future will create more competition, possibly resulting in the scooter companies to ‘behave’. However, for now, many new players will go great lengths to own that first and last mile of the average commuter.
It is interesting to see where this will lead. Is this electric scooter sharing service considered an accurate indicator of whether more people will use ride-sharing services in the future? Is it an indicator that people are willing to commute in a ‘cleaner’ and ‘greener’ manner for the environment? Does it trigger people to become more aware of their behavior toward sustainability?
Lastly, the big question is of course, “who will remain to stand, and who will manage to stand tallest?” Will the start-ups be granted permits all across the globe similar to those they were granted in the Bay Area this month, and revolutionize the future of mobility at unimaginable scales? Or will governments block these initiatives for ‘greener’ and ‘cleaner’ transportation purely for the sake of safety matters?

Or is it all just a matter of time before every user ditches their electric scooter (hopefully not literally) and purchases their very own? Interesting times ahead, that’s for sure!

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Apple: Incrementally Disruptive?

11

September

2019

5/5 (1)

Back in the era of Steve Jobs, Apple Inc. was often recognized as one of the most disruptive companies on our planet. And it was, right? Jobs created a product (the iPod) and a service (iTunes) that allowed any customer to ‘carry’ up to 1,000 songs in their back pocket. And then he combined it all into one product, the iPhone (even then it had a camera other smartphone manufacturers could only dream of). He disrupted the music and mobile phone industry and was gaining a small advantage in the photography industry, a very small step at a time. This led to gradually gaining market share from Blackberry and Nokia, the bigger players back then, and eventually sending Kodak into bankruptcy. Ever since, Apple has updated its products, launched a series of iPads and smooth-looking laptops. But what is it at now? Still disruptive? Incremental? Or disruptive again? Opinions differ. Here is mine.

Disruptive innovation is defined as “an innovation that creates a new market and value network and eventually disrupts an existing market, displacing market-leading firms and products”. Incremental innovation, on the other hand, is explained as “a series of small improvements to an existing product or product line that usually helps maintain or improve its competitive position over time”.

What was once so disruptive, has now become a company that can strongly illustrate its incremental changes and has been able to prove the value of a wide variety of small improvements and updates. When Jobs presented the first-ever iPhone, he disrupted several industries during one Keynote event. Last night, when Tim Cook showcased the latest iPhone 11 series, he focused on the incremental changes to the phone, mainly the camera, besides the battery duration improvement, the fancier screen display (Super Retina XDR), and the A13 Bionic chip. Apple spent a good 15 minutes of the 20-minute iPhone 11 Pro Series presentation on its cameras. Sure, the optical image stabilization, 120-degree field of view, and TrueDepth camera are cool features and new additions to an already astonishing iPhone. Yet many enthusiastic Apple fans have been waiting years for something as disruptive as the first-ever iPhone. Let’s be honest, what has Apple really done in the past years that have changed the world? We’ve awaited many rumors about self-driving cars and wireless chargers, yet the only entirely new product we as customers have been given is the AirPods.

In short, Apple went from one of the most disruptive tech giants in the world to becoming a stable, market-leading company which is now continuously adding incremental innovations to their current products. As much as many of us have awaited something disruptive from Apple’s side, a large percentage of customers is also very satisfied with the (relatively small) incremental changes in the existing products. And so, they should be. Why? Because they have the potential to lead to disruption, somewhere else.

As mentioned previously, Apple’s incremental changes are disappointing to some, yet satisfying to others. If we take the incremental changes outside of Apple’s core focus, we will see that these improvements, especially on the iPhones, are slowly setting foot in different industries, in a rather disruptive manner. Over the years, and yesterday’s Keynote event highlighted this once again, Apple is set to disrupt a few different industries that were unknown and perhaps also irrelevant to the company back when Steve Jobs launched the first iPhone. Three industries that stand out the most are healthcare, retail, and media (or graphics and marketing, or photography, however you want to see it, it basically comes down to the updated cameras on the iPhones).

Healthcare
Tim Cook has been talking about a “great legacy” for a few years now, and many believe he is aiming to inject into the health-care industry. The Apple Watch, for instance, can give consumers a much bigger role in their own health care. Even the iPhone tracks your steps and analyzes your sleep on a daily, weekly, monthly and yearly basis. And based on that, the devices will even remind you when to go to bed. Cook strongly believes that the impact of Apple on the health-care industry will be as similar to the iPhone’s impact on the photography industry (more on that later). Several years ago, when Apple introduced the HealthKit, ResearchKit, and CareKit, it has not only been at the forefront of unlocking personal health data of you and me, but it has also been sharing this with care teams, researchers, and even first responders. Change in this industry is certainly not happening overnight, but these moves by companies like Apple demonstrate that disruption is bound to happen sooner than later.

Retail
By mentioning the fact that IKEA rolled out an AR Application all built on Apple’s ARKit, almost enough has been said about how Apple is aiming to disrupt the retail industry in the near future. Apple’s ARKit (Augmented Reality Kit) allows IKEA users to choose from over 2,000 IKEA products to view and move them around virtually in any room. Based on room dimensions, and with an accuracy rate of 97%, the app (and so Apple’s ARKit) can scale products. As one of the biggest retailers in the world has already adopted Apple’s Augmented Reality opportunities, it will only make sense for other big players to create their own AR Apps. Sure, Apple may not have illustrated its innovations in its hardware, but with its ARKit it aims to open the door for many more retailer AR activity.

Media / Photography
By now it should be obvious to you that Apple continues to drive home the power of the camera(s) on their new iPhones. You would almost consider it to be their USP. Perhaps it is, but there is a lot more to it than just the hardware updates. Sure, the design looks slick (especially in the promotional videos Apple created) but it’s the power of the processors and the machine learning capabilities that get the perfect shot; that smooth looking portrait picture, the optical image stabilization when shooting videos and TrueDepth functions when shooting long-range photos. iOS is even becoming a pro software for image and video editing professionals. Adobe has now brought a large amount of its software to Apple’s operating system, allowing professionals to accomplish their great works on Apple phones and tablets.

The question we can now ask ourselves is, can a company that was once disruptive apply incremental innovations for a given period in order to slowly disrupt other industries? I personally think Apple outsmarted others and played the right cards. Whereas many thought Apple was at its peak in the era of Steve Jobs, I think Tim Cook took the time to shift focus yet acted fast enough to disrupt industries no one had first imagined yet is amazed by it now when they think beyond only the hardware updates Apple has been presenting in the past years.

Smart move, Tim. Well played, Apple.

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