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Austin scooter company looks to change industry

It’s hard to miss the booming trend in the urban parts of the city, so it may come as no surprise that a local company is rethinking the scooter industry. (CBS Austin)

The City of Austin has launched a new survey looking for citizen feedback on how dockless mobility should operate.

It’s hard to miss the booming trend in the urban parts of the city, so it may come as no surprise that a local company is rethinking the scooter industry.

“We completely flipped it on its head,” said GOAT scooter CEO Michael Schramm.

Schramm said when GOAT first launched, they were struggled to compete alongside major companies Lime and Bird.

So they pulled their scooters to rethink their business model.

Most of the major scooter companies pay people about $5 a scooter to pick them up, charge them and put them back out -- GOAT’s business model has the people charging the scooters actually own them, and also receive 85 percent of the revenue.

“We’re moving away from the gig economy and moving into ownership economy,” said Schramm. “So if you see an average of eight rides per day, per scooter you’ll (earn) over $700 a month on just one unit.”

Schramm said the first 5,000 scooters will be available for purchase for just under $600 once their kickstarter launches later this month. Permits for most major cities that have regulation would be necessary as well as insurance.

"The new business model is a way to bring scooters to town that don’t already have them," said Schramm. “What we want to do is enable ordinary people to be able to have the opportunity that the Limes and Birds and Google Ventures and Ofos of the world have.”

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