Briefing

Toronto’s Drop Mobility enters U.S. market in challenge to Lime, Jump Bikes

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Kansas City will receive 150 electric bikes tomorrow, according to a press release from Drop Mobility. This is the first U.S. market for the company, which currently has contracts with the City of Kingston, Ont. and the University of British Columbia.(The Logic)

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Talking point: Drop Mobility offers electric bikes halfway in between Lime and Jump Bikes, which can be parked anywhere, and Bixi (in Montreal), which can only be parked in specially-designated docks. Drop’s bikes can be locked to any bike rack, but can’t be left just anywhere. Unlike rivals, Drop Mobility prefers regions where it has a monopoly. That avoids the high-cost wars companies have faced in cities like San Francisco, where attempts to undercut one other on price to build loyalty have cut into short-term profitability. That focus makes it harder for Drop to scale as quickly as competitors. That said, this U.S. entry opens up a whole new market for it.