Attachment F - Letter from Vendors
City of Phoenix — Transportation, Infrastructure, and Planning Subcommittee (2024-01-31)
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Shiraz Malul Nov. 1, 2023 Micromobility Planner II City of Phoenix Street Transportation Department 200 W. Washington Street Phoenix, AZ 85003 Delivered via Email Re: Requested Program Adjustments to Increase Ridership Dear Shiraz, On behalf of Spin and Lime, we appreciate your willingness to partner with us to consider program changes that would drive higher ridership of our shared mobility services in Phoenix. For the last year, ridership levels of both Spin and Lime scooters have significantly underperformed compared to previous historical levels in Phoenix and in nearby markets. To address this issue, we have included a few requested program adjustments below to drive higher ridership among local residents and improve the viability of the program going forward. I. Current Ridership Levels in Phoenix To start, we would like to provide a quick update on our persistently low ridership levels in 2023. As indicated in the table below, Spin has experienced an average utilization rate of less than 0.5 trips per device/day on scooters from March 1 to October, 1 2023. For Lime, the average utilization rate over the same period is 0.75 trips per device/day. This represents an estimated 40%+ reduction in average daily ridership when compared to the same period in 2022. Performance Metrics Spin Lime Scooter Utilization 0.48 trips per device/day 0.74 trips per device/day II. Recommended Program Adjustments To immediately drive higher ridership, we propose the following temporary policy adjustments in the table below for your consideration. Policy Adjustment Details Effective Date 24 Hour Operations (suspend curfew on We would like to request an immediate change to 24/7 hours of operations in Nov. 15, 2023 1 Attachment F operating hours) order to improve access to our mobility options when other forms of transportation may either be unavailable or unaffordable. In many cities, we see significant ridership in the late evening and early morning hours, a clear indication of unmet demand for our service. In Phoenix, we anticipate that lifting the curfew could improve ridership by 10-20% based on Spin app open data and demand trends we see in similarly-sized cities in the West region. Temporarily Reduce Equity Zone Deployments (6 month trial period) To improve ridership and focus our devices where we consistently see the greatest demand, we request further adjusting the minimum deployment level in equity areas to 5% of our deployed fleet to better reflect current demand trends. On the following page, we have provided a map that visualizes the most popular locations of Spin app opens (i.e. where a customer opens the Spin app to rent a scooter). This temporary adjustment for a six month period (Dec. 1 2023 to June 1, 2024) would enable us to improve the financial viability of the program in the near-term. After this 6-month temporary adjustment period concludes, we recommend revisiting this issue and reviewing ridership trends. Dec. 1, 2023 Revenue Share based on Monthly Trip Performance To preserve affordability for riders, we request that our revenue share payment of $0.25 per cents per trip be waived if each company does not complete at least 9,000 trips over a monthly period. For example, if Lime or Spin provides fewer than 9,000 trips in November 2023 then the revenue share amount for this period would be waived to offset financial losses. If either company completes 9,000 or more trips, then the revenue share for any monthly period would remain in effect. By taking a performance-based approach to revenue sharing, we can preserve affordability for riders and avoid raising per minute fees. Dec 1. 2023 2 Visualization of User Demand in Phoenix As shown below, we have provided a visualization of public demand for our shared mobility services based on the geographic locations of users when they open the Spin app in Phoenix. To complement this data visualization, we have also provided a separate spreadsheet with the precise longitude and latitude of Spin app opens to assist the City in better understanding precisely where public demand is highest (and sometimes unmet ) for shared mobility options. 3 We are committed to strengthening our partnership with the City to provide all residents and visitors of Phoenix with a safe, affordable, and sustainable mobility alternative to cars. We appreciate the opportunity to share our suggestions to improve the viability of the shared mobility program, and we are available anytime to discuss these issues in more detail. Thank you for your time and consideration, Brit Moller Charlie Mastoloni Head of Public Policy & Communications Senior Manager of Government Relations Spin Lime 4