As I understand it, the proper way to open an article about electric scooters is to first state one’s priors, explain the circumstances of how one came to try scooters, and then deliver a verdict. Unfortunately, that means mine is a bit boring: while most employing this format wanted to hate them,
I was pretty sure scooters would be awesome — and they were!For me the circumstances were a trip to San Francisco; I purposely stayed at a hotel relatively far from where most of my meetings were, giving me no choice but to rely on some combination of scooters, e-bikes, and ride-sharing services. The scooters were a clear winner: fast, fun, and convenient — as long as you could find one near you. The city needs five times as many.
So, naturally, San Francisco banned them, at least temporarily: companies will be able to apply for their share of a pool of a mere 1,250 permits; that number may double in six months, but for now the scooter-riding experience will probably be more of a novelty, not something you can rely on. In fact, by the end of my trip, if I were actually in a rush, I knew to use a ride-sharing service.
It’s no surprise that ride-sharing services have higher liquidity: San Francisco is a car-friendly town. The city has a population of 884,363 humans and 496,843 vehicles, mostly in the city’s 275,000 on-street parking spaces. Granted, most of the Uber and Lyft drivers come from outside the city, but there is no congestion tax to deter them.
The result is an urban area stuck on a bizarre local maxima: most households have cars, but rarely use them, particularly in the city, because traffic is bad and parking is — relative to the number of cars — sparse; the alternative is ride-sharing, which incurs the same traffic costs but at least doesn’t require parking. And yet, San Francisco, for now anyways, will only allow about 60 parking spaces-worth of scooters onto the streets.
Everything as a Service
This is hardly the forum to discuss the oft-head-scratching politics of tech’s de facto capital city, and I can certainly see the downside of scooters, particularly the haphazard way with which they are being deployed; in an environment built for cars scooters get in the way.
It’s worth considering, though, just how much sense dockless scooters make: the concept is one of the purest manifestations of what I referred to in 2016 as Everything as a Service:...MUCH MORE
What happens, though, if we apply the services business model to hardware? Consider an airplane: I fly thousands of miles a year, but while Stratechery is doing well, I certainly don’t own my own plane! Rather, I fly on an airplane that is owned by an airline that is paid for in part through some percentage of my ticket cost. I am, effectively, “renting” a seat on that airplane, and once that flight is gone I own nothing other than new GPS coordinates on my phone.What is striking about dockless scooters — at least when one is parked outside your door! — is that they make ride-sharing services feel like half-measures: why even wait five minutes, when you can just scan-and-go? Steve Jobs described computers as bicycles of the mind; now that computers are smartphones and connected to the Internet they can conjure up the physical equivalent as well!...
Now the process of buying an airplane ticket, identifying who I am, etc. is far more cumbersome than simply hopping in my car — there are significant transaction costs — but given that I can’t afford an airplane it’s worth putting up with when I have to travel long distances. What happens, though, when those transaction costs are removed? Well, then you get Uber or its competitors: simply touch a button and a car that would have otherwise been unused will pick you up and take you where you want to go, for a price that is a tiny fraction of what the car cost to buy in the first place. The same model applies to hotels — instead of buying a house in every city you visit, simply rent a room — and Airbnb has taken the concept to a new level by leveraging unused space.
The enabling factor for both Uber and Airbnb applying a services business model to physical goods is your smartphone and the Internet: it enables distribution and transactions costs to be zero, making it infinitely more convenient to simply rent the physical goods you need instead of acquiring them outright.