Shared Mobility Subsidies Dry Up, Revealing the Industry’s Economic Realities

Companies are looking to generate profits, but customers have come to expect low-cost, subsidized travel and raising prices will prove challenging.

2 minute read

August 16, 2019, 6:00 AM PDT

By Camille Fink


Uber Jump bike

paul.wasneski / Flickr

Alana Semuels reports that shared mobility operators are facing a conundrum: how to start becoming profitable and meet the demands of stakeholders without losing the customers who have become used to cheap travel.

As these companies go public, the venture capital that allowed them to heavily subsidize travel options—by car, bike, and scooter—is disappearing. To turn a profit, they will have to raise prices, says Semuels:

[Sam] Korus, the analyst, thinks that shared scooter companies in particular are in trouble as subsidies come to an end. By his math, it costs scooter companies like Bird $2.55 per mile to rent dockless scooters to customers. Before they raised their prices, these companies were generating just $2.43 in revenue per mile, he says, meaning they will eventually have to raise prices to make money. But as they do, fewer people will use the service.

For some customers, purchasing their own devices is a more cost-effective option. Others will just stop using those services and revert to transportation modes they used before, such as walking or transit. Monthly passes or subscriptions are one strategy companies are considering to hold on to customers, and public subsidies are another possibility.

But the economic viability of shared mobility remains uncertain, says Semuels. "While we’re in an economic expansion at the moment, these companies appear particularly vulnerable to the threat of an economic slowdown. If another recession is coming, as observers like presidential candidate Elizabeth Warren have warned, consumers may be even less willing to pay for rides and other shared services once subsidies disappear."

Friday, August 9, 2019 in Time

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

Google street view of red brick multi-story power plant building in Pittsburgh, PA.

Defunct Pittsburgh Power Plant to Become Residential Tower

A decommissioned steam heat plant will be redeveloped into almost 100 affordable housing units.

July 4 - Pittsburgh Post-Gazette

Cyclist on protected bike lane in middle of street in Washington D.C. with Washington Monument obelisk visible in background.

Trump Prompts Restructuring of Transportation Research Board in “Unprecedented Overreach”

The TRB has eliminated more than half of its committees including those focused on climate, equity, and cities.

July 4 - Streetsblog USA

Blue and silver Amtrak train at small station.

Amtrak Rolls Out New Orleans to Alabama “Mardi Gras” Train

The new service will operate morning and evening departures between Mobile and New Orleans.

July 3 - New Orleans City Business