Flutterby™! : Subsidized Rides

'I'm Back to Riding My Own Bike.' Higher Prices Threaten Silicon Valley’s Mobility Revolution

JUMP’s price increases were part of a larger trend across the sharing economy. On-demand services of all kinds have been significantly subsidized by investors as a means of attracting users with low prices. But as companies like Uber and Lyft go public and face shareholder pressure to make money, those subsidizes are ending. That means customers are now being asked to pay what it actually costs companies to provide them with shareable bikes, scooters, and rides. “The amount that venture capitalists are subsidizing people’s lives right now is much higher than people realized,” says Sam Korus, an analyst with investment firm ARK Invest.