Uber has plans to phase out cars in favour of electric scooters and bicycles for customers taking shorter journeys in big cities.
The ride hailing app already has the plan in place in New York City, Washington DC and Denver, and will soon expand the environmentally friendly modes of transport to Europe.
Commuters travelling by scooter or bike would help streamline inner city travel and would also be cheaper than taking a ride in an Uber car.
Uber’s chief executive Dara Khosrowshahi admitted drivers would be making less money at first, but said it would help them pocket more cash in the long run.
Uber has plans to phase out cars in favour of electric scooters and bicycles for customers taking shorter journeys in big cities
Speaking to the Financial Times, Mr Khosrowshahi said: ‘During rush hour, it is very inefficient for a one-tonne hulk of metal to take one person 10 blocks.
‘Short-term financially, maybe it’s not a win for us, but strategically long term we think that is exactly where we want to head.’
He added: ‘We are willing to trade off short-term per-unit economics for long-term higher engagement.
‘When I’ve spoken to our driver partners about it, the first impression was, why are you bringing in a bike to compete against me?
‘The second impression after the conversation is, oh, I get a longer ride where I can make more money? Sign me up.’
Uber’s chief executive Dara Khosrowshahi admitted drivers would be making less money at first, but said it would help them pocket more cash in the long run
Bikes have been available with Uber since February and expanded its fleet after buying Jump, a bike-sharing company, for around £155m ($200m) in April.
Uber also partnered with Lime, an electric scooter company, for its new strategy.
Last year Uber lost £3.5billion ($4.5billion), creating pressure on the giant to make up the lost revenue after funnelling money into Uber Eats and its self-driving car project.
Earlier this month, New York City moved to regulate the explosive growth of Uber and other app-based ride services with a temporary cap on new licenses for ride-hailing services.
Backers of the proposals said both the traditional yellow cab industry and drivers for app-based services are suffering as Uber cars flood the city’s streets.
They said the growth of ride-hailing apps has also worsened traffic congestion.