Making Bank: Scooter Share Profits and Margins
Everyone wants to make money.
In this post, I want to break down the costs of running a scooter share, as well as generate a handy chart that shows gross and net revenue based on margins reported and my own estimates/analysis.
Bird recently released data related to the gross profit margin, which came in at 19%. However, they projected a rise to 33% in the “near term.” The breakdown is as follows:
These figures do not include fixed costs.
One of the important takeaways is that Bird has indicated that they think it is easily achievable to increase that margin to 33%, equaling $1.20 on the average ride.
Nonetheless, I will calculate based on the 19% indicated by Bird as its current margin. Below, there are two tables detailing gross and net revenue. Note: this is the daily revenue and profit.
Net Revenue (19% Margin)
These figures are not a guarantee. Additionally, there are obviously additional capital costs that must be considered. Nonetheless, even as a rough exercise in accounting, these figures do show some serious revenue potential within a mobility platform.