From Financialexpress · Anees Hussain · · 1m 20s
Bengaluru Traffic Shifts Yulu's Business Model
Yulu pivots from bike rentals to delivery services after traffic woes.
In brief
Yulu pivots from bike rentals to delivery services after traffic woes. Yulu shifted from short urban bike rentals to electric delivery vehicles after traffic in Bengaluru worsened, now targeting food delivery and gig workers with a fleet of 50,000 bikes. Originally reported by Financialexpress.
Amit Gupta's traffic frustration
Amit Gupta planned to retire at 40 but Bengaluru traffic made his commute take an hour instead of 10 minutes.
“I thought this menace of traffic will only get worse”
Yulu's initial bike rental model
Yulu launched in early 2018 with QR code bike rentals for short urban commutes but users preferred fitness over daily travel.
“People were using those pedal cycles more for fitness and leisure, rather than the daily commute”
Yulu pivots to delivery services
Yulu shifted to low-speed electric bikes for delivery riders after offices closed during Covid, finding new use for idle assets.
“We thought why don’t we offer our bikes to these riders on a fixed rental”
Funding and fleet expansion
Yulu raised $198 million in equity and $49 million in debt, with 50,000 bikes including 2,500 Miracles for commuters and 700-800 Express vehicles.
“The fleet is around 50,000, comprising the Miracle for commuters, the DeX for delivery riders and the Yulu Express, a two-seater”
Yulu's new business focus
Yulu plans to deploy 7,000-8,000 Miracles for commuters and double its fleet in a year while targeting delivery aggregators like Rapido and Uber.
“Yulu plans to put 7,000-8,000 Miracles back on Bengaluru’s roads over the next two to three quarters”
Regulatory challenges ahead
Yulu faces potential regulatory shifts as the government considers raising power limits for low-speed vehicles from 250 watts to 600 watts.
“A draft from the Ministry of Road Transport and Highways proposes raising the power limit for low-speed vehicles from 250 watts to 600 watts”
The short version
Yulu shifted from short urban bike rentals to electric delivery vehicles after traffic in Bengaluru worsened, now targeting food delivery and gig workers with a fleet of 50,000 bikes.
