Subscribe to the 100% free rdnewsNOW daily newsletter!
roll down to electric avenue

E-scooters give multi-million dollar boost to Red Deer businesses, companies say

Oct 20, 2022 | 11:17 AM

E-scooters are having a clear positive impact on Red Deer’s local economy, companies which operate them say.

The summer of 2022 marked year two of a three-year pilot project, with three companies — Neuron, Bird and Roll — providing e-scooters for residents to ride.

According to Neuron, every one of their 250 e-scooters contributed about $9,800 to the local economy, with an estimated $2.5 million overall impact.

Neuron also says 74 per cent of e-scooter journeys resulted in a purchase from a local business, with the average expenditure being $29.

“Our vision has always been to partner with Canadian cities to help them build a more prosperous and sustainable future. We’re heartened that our new report clearly demonstrates we’re on the right track. The data shows our e-scooters are helping to boost Red Deer’s economy and revive local main streets, which is certainly welcome, particularly in the wake of the COVID-19 pandemic,” says Ankush Karwal, Head of Market, Neuron.

“However, our work doesn’t stop there and we are committed to helping Red Deer thrive in the long term. Neuron’s e-scooters have helped make cities more livable too, providing much needed first and last mile transport options, enhancing local public transport networks and helping to keep cities running 24/7 by providing essential transport to those working night shifts.”

Neuron also estimates that 16 per cent of trips wouldn’t have happened at all if an e-scooter weren’t available. The most common shopping venues are restaurants and recreation facilities.

Interestingly, Neuron also found that 26 per cent of trips which start and end at Red Deer Regional Hospital occur at night, “supporting health care workers on their commute to and from work.”

At Bird, they estimate a $35 million economic impact across the 10 cities it operates in. Bird had 200 scooters in Red Deer this year.

Their numbers also show about 40 per cent vehicle replacement, meaning 1.2 million car trips not taken over the last three years, with Bird e-scooters alone.

While Bird hasn’t compiled the same level of report, Chris Schafer, VP, government affairs, agrees the trend is increased foot traffic to the downtown.

“We’ve spent a lot of time talking to business improvement areas (Downtown Business Association) and chambers, and they agree that having a convenient, affordable, sustainable and environmentally-friendly way to get around is making a difference,” says Schafer.

“It brings people downtown, which plays a part in revitalization. It brings an overall vibrancy, and municipalities have talked about seeing people move around on scooters re-engaging with the city in a different way. You can stop, talk to people, or hop off if something catches your eye, which is harder to do in a car because you have to find parking etc.”

The third company, Roll, which didn’t get back to rdnewsNOW, was permitted 500 scooters by The City of Red Deer, though final numbers won’t come in until the season officially ends, The City says.

The City conducts an end of season survey yearly, with the same questions being asked this year as last, with one addition relating to the change in age limit in 2022. The survey also includes a question about injuries, something eight per cent of survey respondents said they experienced in 2021.

Red Deer Mayor Ken Johnston calls season two of the e-scooter pilot a, “brilliant success.”

“We are thankful to the citizens who embraced this new program that provides a fun, engaging and new way of getting around our city,” said Johnston. “E-scooters continue to be an incredible way to relaunch our local economy and community life, bringing Red Deerians back together and exploring our downtown. Not only did it allow us to welcome several new companies to our community through the e-scooter providers, but the economic spinoff effect that was created with getting people out and about again, exploring businesses that they otherwise may not have experienced was incredible. City council and I look forward to the third season of the pilot program next summer.”

This year’s season ends Oct. 31, with roll-out next year to begin on or about March 15. A full assessment will be completed following the pilot’s third year.