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
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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
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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.
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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
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