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Brighton paid an extra £30,000 for electric-ready bikes – but Uber won't supply the electric conversion kitsBrighton Hourbike

Brighton paid an extra £30,000 for electric-ready bikes – but Uber won't supply the electric conversion kits

City’s Hourbike scheme being re-examined
by Alex Bowden
Sat, Mar 14, 2020 14:59
8

Brighton council paid £30,000 extra for “e-ready” bikes for its Hourbike scheme but is now struggling to secure the electric conversion kits after Uber took over as bike supplier. The scheme is also reported to be running at a loss in the absence of financial sponsorship.

Brighton and Hove News reports that Hourbike was projected to bring in almost £200,000 a year in sponsorship, but a report says that this and other revenue forecasts were too optimistic.

The report says: “Demand was calculated for residents, rail users, employees and tourists and predicted at 5.6 trips per bike per day.

“This has subsequently proved unrealistic across many UK schemes. Actual demand averages just over two trips per bike per day across the year, with peak season usage going as high as four trips per bike per day.”

In a letter to council chief executive Geoff Raw, Conservative councillor Lee Wares also highlights the deal with Uber, where he says the council has ended up overpaying for bikes.

“The council ordered and paid for electric-ready bikes,” he writes. “During the contract, the supplier was acquired by Uber who subsequently would not supply the electric conversion kits.

“The council has now received e-ready bikes that cannot be electrified but, in the process, paid circa £30,000 more than had standard bikes been purchased.

“Please confirm what action is being taken to either force Uber to supply the conversion kits the council has paid for or recover the overpaid £30,000.”

Councillors will meet this coming week to discuss financial and commercial aspects of the scheme.

Brighton
Hourbike
Alex Bowden

Alex has written for more cricket publications than the rest of the road.cc team combined. Despite the apparent evidence of this picture, he doesn't especially like cake.

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8 comments

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Municipal Waste | 4 years ago
1 like

Furthermore, across the city there have been instances of regular bike parking having been removed, useable by all, to be replaced by infrastructure which only benefits a private corporation.

There's also an alarming lack of data surrounding whether or not the investment has in-fact resulted in any modal shift in transport choices around the city.

Meanwhile at least three independent bike shops have closed, citing a marked drop in trade since the beginning of the scheme, whilst Uber continue turn a profit.

Nice.

Avatar
brooksby replied to Municipal Waste | 4 years ago
0 likes

In Bristol we dont have Uber bikes but have yellow dockless Yo bikes. The guidance for which involves them being left parked against normal public bike racks. So the limited stock if pubkic bike racks becomes clogged up with corporate owned hire bikes...

 

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TedBarnes replied to Municipal Waste | 4 years ago
0 likes

Municipal Waste wrote:

...whilst Uber continue turn a profit. Nice.

Uber is currently losing around $1 billion each quarter. Unfortunately it seems the supply of venture capital money propping them up is almost unending. 

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Rick_Rude replied to TedBarnes | 4 years ago
0 likes

Amazing how many of these 'big' names aren't even making money. It seems the idea is to tell the consumer what they want rather than give them what they want.

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Rapha Nadal replied to Municipal Waste | 4 years ago
0 likes

Municipal Waste wrote:

Furthermore, across the city there have been instances of regular bike parking having been removed, useable by all, to be replaced by infrastructure which only benefits a private corporation. There's also an alarming lack of data surrounding whether or not the investment has in-fact resulted in any modal shift in transport choices around the city. Meanwhile at least three independent bike shops have closed, citing a marked drop in trade since the beginning of the scheme, whilst Uber continue turn a profit. Nice.

Which independent's have closed as I can only think of Rule 5 in recent times?

Avatar
wingmanrob | 4 years ago
1 like

There you go, that's Uber for you, anyone who uses Uber for taxis or to get your food delivered, hang your heads in shame, dreadful company that doesn't pay any tax in this country.

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srchar replied to wingmanrob | 4 years ago
0 likes

I assume you don't use Google, buy stuff on Amazon, send letters using Royal Mail, get shopping from Ocado, have an ISA...

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Jetmans Dad replied to wingmanrob | 4 years ago
0 likes

Any frustrations with companies not paying "enough" tax in this country lie at the door of successive governments, who have chosen not to engage with the problems of putting a modern corporate tax system into place, not the companies themselves. 

And, given that Uber are a company, and companies are taxed based on profits not income, the fact that (as pointed out elsewhere in this comment thread) they are making heavy losses year on year, it shouldn't come as a surprise that they aren't paying any tax. 

That's not to say Uber are not a dreadful company (I have never had reason to use them for anything, so have no idea) but context matters. 

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