One Solution to Make Food Delivery Profitable

The Lempert Report
January 14, 2020

Electric scooters have potential to change transportation networks in cities in a big way

According to OjO Electric CEO Max Smith, OjO’s scooters are “really designed to deliver food, to do parcels, to do packages.”

OjO is jumping into the crowded landscape of electric scooters as the two-wheeled machines shake up transportation networks in cities around the country, many of which are dealing with rising car and truck congestion.

Scooter companies are attracting bushels of venture capital, with investors looking to grab a slice of the $7 trillion mobility market. But the disruption is sometimes creating headaches for city governments, according to CNBC — and, in a way, for emergency rooms — as they grapple with how to regulate the scooters. Here in Santa Monica scooter riders go through red lights, cross in front of moving traffic, ride on sidewalks disturbing people who are walking and just throw down the scooters on the ground when they are done with them.

Smith told CNBC that OjO has designated drop-off spots for the scooters. Riders could leave the scooters, which have a maximum speed of 20 mph, somewhere else but they will pay a fine.

OjO has a food delivery pilot underway. “They’re reporting in excess of 30% more efficient deliveries using the scooter,” Smith said, asserting it’s better than both cars and bikes. “The average rider right now, the delivery person, is doing 35 miles a day. There are some doing 50, 60 miles a day. That’s more trips, more tips.”

They are not alone.  Domino’s pizza is experimenting with e-bike delivery.