Commoditization of the Sidewalk

Commoditization of the Sidewalk the high cost of free public space Mauritz Börjeson Chief of Business Development Officer EasyPark Group

Distribution of public space

Roads

Parking spaces

Sidewalks

Bike lanes

Squares & plazas

46%

8%

25%

6%

11%

Bike parking 1%

Walkways 3%

Source: Mobilitets Redegørelse 2021, Copenhagen Kommun.

Observable phenomena on our sidewalks Urban development that can make cities more liveable

Sidewalks are unevenly congested

All kinds of phenomena are crowding the same places on the sidewalk

What is our role?

What is our role as policymakers and what should we do?

Eltis, Sustainable Urban Mobility Planning & SUMP4Park

16

Understanding commercial micro mechanics Examining the unit economic considerations from an investor point of view

Unit Economics - Outlier.ai

”Contribution margin is a measure of your per unit profit, by subtracting the variable cost per unit from the sale price of the product or service.

Or in other words,

”

”In principle, the rule is simple; Unit economics only considers variable costs, not fixed costs.”

Source: https://outlier.ai/resources/best-practices/

The Scooter Case

Capacity calculation leads to 75% idle resources

City X

Theoretical spread

4 (four) actors with the same calculation

The scooter case; assumptions 4000 scooters

50 rides/month/scooter

€500 fixed cost/scooter

€1m investment

100k rides/month

€2* variable cost per ride (incl. maintenance, charging, support, marketing, banking) €4* avg trip price

*Source: Atommobility.com

Two alternative schemes Fixed Permit vs. Variable ”Idle Fee”

Entry barrier for smaller players with not enough cash. Allows less-than efficient biz models.

Fixed “buy-in” permit

(Rides x Avg. Trip Price)

Monthly Costs (Rides x Avg. Cost/Ride)

Monthly Income (Revenue - Cost)

Pay Back Time (Investment / M. Income)

Idle-scooter fee

+ €50 permit/scooter.

Increase in Investment cost

+ fee for idle scooters Increase in Variable cost

€480K

€480K

€480K

€240k

€240k

€240k

€240k

4000 scooters Monthly Revenue

Open model encouraging optimization of inventory and sustainable biz model.

8m

9m of a fixed The introduction permit(€2,2m does not affect unit / €240k) economics.

Weak or no deterrent topermit The introduction of a fixed inventory surplus. does not affect unit economics.

Weak deterrent inventory Makes capitalto the surplus. competitive advantage.

€240k + idle fee (120k x €2) + ”idle fee”

€240k – “idle fee” +9m Effect on long term considerations wellfee”)) as (€2m / (€240kas -”idle short term revenue.

Effect on longaligned term for fleet Incentives considerations size restraint.as well as short term revenue.

Makes utilization the Good deterrent to inventory competitive advantage. surplus.

Bad

Good

Prohibition

Fixed cost per unit to operate

Variable cost

Variable cost with incentive

From one day to another everywhere

With a fixed starting date everywhere

Gradually introduced starting small for the price and geography

Gradually iterated together with forward guidance

● Stifles innovation. ● Ignores consumer demand and is out of step with citizens wants. ● Overinvest in the past. ● Makes cities less liveable.

● Acts as a barrier of entry. ● Best case pushes payback period backwards and worst case increases consumer price. ● Does not change decision making for the company.

● Is effective as it targets overcapacity and ‘wrong behavior’. ● Changes calculation for market participants as they can influence operational efficiency. ● Can be applied fairly.

● All the benefits of the previous box. ● In addition to dealing with negative behavior it can positively influence better behavior.

Insight

to

Foresight 27

What research says

28

Thank you

31