Earlier in 2018, Uber acquired a bikeshare startup named JUMP and requested permission to deploy it in Santa Monica where other bikes by Bird and Lime are already operational. Now that the state has granted permission, Uber is deploying the electric bikes and scooters all over the city.
What is JUMP?
JUMP is a bikeshare startup providing dockless electric bicycle sharing system in the US. Originally, the scooters are Xiaomi Ninebot but Uber decided to brand the scooters with JUMP in order to be consistent in their execution of deploying bikes and scooters in Santa Monica. The brand equity of JUMP is well-established in the market so Uber can compete well by being consistent in this case.
The Pilot Program
To begin with, Uber can deploy a maximum of 250 scooters and 500 bikes on Santa Monica streets. The maximum that the riders can go should be within the service area of Santa Monica because beyond that area, the riders would be fined.
Uber decided to provide the service for free on October 7th as part of their promotional strategy after which the scooters unlocking will cost $1. After the unlock, riders will be charged 15 cents per minute once five minutes have passed which makes it a very cheap option for the people of Santa Monica.
How Will the JUMP Service Work?
Uber takes safety measures very seriously and there is a standard procedure through which riders will have to go. Before taking the first ride, the rider needs to upload a picture of their driving license while after every ride ends, they have to upload a picture of where the scooter is parked. The point of differentiation for Uber is that their own employees are responsible to collect all scooters at night so that they can recharge throughout the night and deploy them again the next morning.
It is for this reason why JUMP could be a threat to already-established bikeshare brands in Santa Monica as Uber’s service quality is expected to be beyond great. Uber is likely to launch this service in other areas of US as well but let us see when that happens!