Ford bought a start for renting electric scooters. Shares are waiting for growth
The US car maker has spent $ 80 to $ 90 million for Spina's purchase. It provides buyers with rental scooters. Hire a two-wheel drive vehicle will help Forda attract new customers
October 19, 2019
Predictability of forecasts
Automaker Ford has acquired California-based Spin, which leases electric scooters for cities and campuses. The transaction amount is estimated at $ 80-90 million, according to The Wall Street Journal. The launch, created two years ago, will continue to operate as an independent business within the Ford Smart Mobility subsidiary, according to the publication.
Scooter as a replacement car
Spin in San Francisco was interested in the Detroit car maker through a successful co-operation with local authorities. The service quickly accessed service provision and data sharing, said Ford Head of New Car Division, Marcy Klevorn.
Start-up provides services to city residents who do not want to buy their own car. Users rent electric scooters, paying a one-time fee of $ 1. After that, Spin customers charge an extra $ 0.15 per minute of usage. Prior to that, the project was hired to rent bicycles, but in February 2018 it changed its specialty and finally abandoned bicycle rental.
Now Spin provides its services to 13 American cities. Over the next and a half years, Ford intends to expand its network into more than 100 cities across the country. The emphasis is on the fact that electric scooters, which users rent an average of $ 3-4, will quickly become popular and replace walking or short trips on cars.
Using a scooter will help solve problems such as traffic jams, availability and parking lot pollution, according to the Ford Motor.
Why do you need Ford?
At present, the car maker is actively developing new market trends to attract new customers. The Ford Smart Mobility subsidiary, founded in 2016, has become part of Ford's extended business model. The strategy ensures the development not only of the car segment, but also of the service of new transport services.
In addition to renting electric scooters, Ford develops a Chariot taxi service operating in several US cities and Emergency Services called Go-Rid. Ford also owns the Ford Go Bike rental system in San Francisco.
Auto gigantic executives said they would continue to invest in new shipping companies that would help the Forda to cross the traditional market. Now the company gradually reduces costs. Nevertheless, automotive gains in the last nine months were down by 37.4% to $ 3.8 billion, as a result of rising commodity prices and falling sales in China.
The growth in competition in other countries, the rise in raw material prices and the decreasing business environment in the NRK negatively affect quotas. However, JPMorgan analysts believe Ford will be able to reverse the trend in the coming year. In their opinion, paper can rise to $ 13 per share. Growth potential is 38.59%.