One Moto https://one-moto.com Emotion in Motion Thu, 17 Nov 2022 05:17:36 +0000 en-GB hourly 1 https://wordpress.org/?v=6.4.3 https://one-moto.com/wp-content/uploads/2021/07/cropped-logo-onemoto-solo.png One Moto https://one-moto.com 32 32 Fuel price increase: the demise of the last-mile industry https://one-moto.com/fuel-price-increase-the-demise-of-the-last-mile-industry-2/ Sun, 30 Oct 2022 06:00:00 +0000 https://one-moto.com/?p=1720 In the UAE, this year, we’ve seen five price increases in fuel, which has led to the last-mile, logistics and delivery industry being affected drastically. In this article we talk about delivery riders in the UAE, we break it down to predict a dramatic shift in the operations and the affects to the industry as whole.
Fuel price increase: the demise of the last-mile industry

In case you are not familiar with the hyper-growth and uber-competitive UAE delivery market, the majority of companies operate with the riders being responsible for paying their own fuel.

Let’s run this scenario:
Since January 2021 fuel price was at AED 1.80 a litre as of today (1st July 2021) this is currently AED 2.35.

The average delivery rider (food delivery aggregators) travels:
* 6,000kms per month
* Refuelling five times per week (partial filling)
Downtime is an additional in-direct cost — which has been calculated at five hours per month, per rider.

In January 2021 these riders were spending AED 3,784 per year.
Today, they are spending AED 4,941 per year. Equating to an increase of over 30%
If oil prices increase to $100 a barrel as predicted the cost per litre in the UAE could reach AED 2.90 increasing the costs further for the delivery riders by AED 1,156 — resulting in a delivery rider paying AED 6,097 per year on fuel. With the average rider earning AED 36,000 per yearIs this sustainable?

What could this mean?

  1. Delivery riders choose not to deliver — it’s not financially viable.
  2. Operators absorbing the cost of fuel — the industry will crash.
  3. Restauranteurs boycotting aggregators — already in discussion.
  4. Aggregators will fold — or we’ll see a consolidation/M&A.
Fuel price increase: the demise of the last-mile industry

Adopting a reactive response to the defined shortcomings of fuel increases is a disaster. Transport contributes around 40% of the cost of delivery. Not identifying the opportunities now, will surely lead to the demise of many market leaders.

In addition to this, the Roads and Transport Authority (RTA) have suggested adding a AED 1 fee per delivery, with many of the aggregators delivering over 1million per month, this additional increase could devastate the aggregators, or indeed increase the delivery costs for each of their customers — most likely.

What is the solution?

  1. Being proactive, switching the operational structure of the business?
  2. Tech-aggregators owning their fleet, instead of the asset-light approach?
  3. Work collaboratively with restauranteurs/customers to offer an alternative?
  4. Choose an alternative mode of fuel based transport?
  5. Government to subsidise the fuel?!
  6. Use the impending AED 1 delivery fee to purchase a fleet of EVs?

What would happen to the last-mile delivery sector if the exodus ensues? Is another fuel price increase: the demise of the last-mile industry?

That’s just speaking about the fuel prices and profitability, the harm to the environment from these commercial ICE vehicles is shocking, I’ll save these stats for another entry.

If you’d like to discuss switching your fleet electric (just like Domino’s in France, Zomato’s 2030 commitment and Amazon’s announcement), please reach out and we can show you how switching your fleet will ensure longevity and profitability to this industry. So, is the fuel price increase: the demise of the last-mile industry?

Thank you for reading.
Adam Ridgway
one-moto.com

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AVIS partners with One Moto, doubles down on electric vehicle fleet https://one-moto.com/avis-partners-with-one-moto-doubles-down-on-electric-vehicle-fleet/ Fri, 21 Oct 2022 06:40:57 +0000 https://one-moto.com/?p=2458 The partnership between One Moto and Avis UAE offers a solution to the traditional Capex versus Opex model to satisfy any objections and offers an affordable, data-driven electric fleet. One Moto expects demand for electric delivery vehicles to exceed 25,000 vehicles within the next 12 months.

Avis UAE, offering fleet leasing solutions, has partnered with One Moto Technologies as their strategic electric motorcycle vehicle provider as the it commits to meeting the demand of any customer wanting a fleet of electric delivery vehicle. Fleet managers, 3PL, F&B operators, and aggregators can now lease an electric delivery fleet through Avis. A sustainable delivery eco-system in the UAE is a significant step toward a greener future.

Over the past 12 months, many delivery aggregators and last mile logistics operators have had a Capex versus Opex consideration when many want to adapt to their green agendas, yet cost was always the over-arching sentiment. The partnership between One Moto and Avis UAE offers a solution to satisfy any previous objections and offering an affordable, data-driven electric fleet.

Avis expect to increase their electric delivery offering to exceed 25,000 vehicles within the next 12 months.

Adam Ridgway, CEO, ONE MOTO Technologies said, “We want to electrify all last-mile vehicles in the UAE by 2024. Following the UAE government’s agenda and commitments we will ensure the world realises, the UAE take the necessary action to bring change (before COP28).”

Both companies will be working to confirm contracts for the 44,500 vehicles in discussion throughout the GCC. Early movers will always have the advantage, but the ‘decision’ to make the commitment first isn’t always forthcoming.

Ridgway added, “Currently the UAE isn’t known for manufacturing and export, and amidst the recent announcement of Operation $300bn and the drive to create international export through manufacturing and production, with like-minded public and private sector collaborations, we’ll be able to make it happen.”

Dominic Hagerty, Avis UAE General Manager, said, “We recognised the need from our customers and we acted on it. We see e-mobilisation as an important path in our immediate and future strategy and we are happy to be able to finally begin the journey.”

AVIS is doubling down on its EV and green agenda and looking to increase their sustainable vehicle offering and support the government’s COP28 campaign.

Full article: https://www.sme10x.com/10x-industry/avis-partners-with-one-moto-tesla-doubles-down-on-electric-vehicle-fleet-management-avis-partners-with-one-moto-tesla

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The Real Life of a Delivery Rider in Dubai https://one-moto.com/the-real-life-of-a-delivery-rider-in-dubai-2/ Wed, 12 Oct 2022 06:00:33 +0000 https://one-moto.com/?p=794 Developing a fleet of last-mile delivery vehicles — working alongside some of the world’s largest operators — building the vehicles beyond their needs, I wanted to uncover some of the tribulations delivery riders go through in the UAE, so I took to the roads for a week to realise first-hand exactly the real life of a delivery rider and what the solution is.

Over the past 12 months (UAE) there have been more fatalities and accidents reported than previous years (12 riders died in April 2020). The question is why, the general opinion is the erratic riders themselves, the roads being a occupied by a frantic slur of ‘phone using’, distracted drivers. But is this really the reason for so many accidents? I took to primary research to uncover the truth, to help the UAE government find a solution to this unnecessary and avoidable series of statistics.

Allow me to set the scene, since the start of 2021, I’ve ridden past tens of delivery riders all sporting their different ‘employers’ colours, the oranges, greens, teal, pink amongst others sat at the side of the main roads, I pull over to many, 70% of them had run out of fuel! Why? I’ll get to that later. The other 30% just needed a rest as they were suffering neck, back and wrist pain. Why? I’ll get to that too.

Hearing these issues and seeing the unrelenting heard of beaten, battered and bruised delivery bikes over my time causes me tremendous concern. As a motorcycle license holder for the past 24 years, I believe I can offer an objective assessment of a motorcycle by ear and eye. The baggy chains, squared off tyres and exhaust noise of these ‘metal work horses’ are not in a safe condition and as research proves, are also not serviced to the levels required or expected by the Roads and Transport Authority (Dubai), and why is that? I’ll address that now.

Each month the average delivery motorcycle travels 3,000kms, requiring servicing of brakes, tyres, plugs, sprockets, oil, filters regularly, yet due to the intense working pressure, many do not service as it eats in to their working hours, affecting the riders earnings.

Approximately 5 hours per month is spent in downtime of the delivery riders in the UAE — yet the working pressure remains.

Highlighting this further, a fleet of 500 vehicles costs AED 265,000 in fuel, AED 215,000 in servicing. Yet who pays these costs? Well (in most cases), the riders pay for the fuel, the servicing is taken care of by the service agreements of fleet operators — one last-mile operator said “it was cheaper to acquire the workshop, than pay the maintenance costs each year” (on a fleet of 353 vehicles).

2020 was the ‘Year of Introduction’ of ONE MOTO. Nominated and winning five awards, doubling sales, keynote speeches and seminars were all a part of the ‘education’ surrounding the brand and the business, most importantly the reason why ONE MOTO and the switch to electric is needed. We spent many months highlighting the environmental benefits (air, noise pollution) yet many companies had some want, but not the need to mandate this transition.

The safety of delivery riders in Dubai

We then highlighted the safety aspects, which gained attention from regional governments, the valuable data we share with them to reduce ‘accident stats’ increase the welfare of riders, understanding their riding patterns and styles and discover why many were reported to faint! Although the want is there, the need was again void. With safety and welfare the addressable point here is the discomfort and riding position of 12+ hours per day placed on the riders bodies (neck, back and wrist pain), the petrol bikes you see, were not designed for such abundant and consistent daily usage. The ergonomic designs of ONE MOTO alleviate these health problems.

With the data the ONE TEAM analysed the information to understand the real-time cost-savings, increased profitability and this caught the attention of all. We needed to feed the most accurate qualified data for the operators, to showcase the benefits for EVs and what this would look like to their bottom line.

By switching to:
Electric delivery motorcycles (Byka) the cost-savings are 73.8%
Electric delivery vans (Deliva) the cost-savings are 58.6%

What other revisions to an operation could deliver these results? And the CapEx investment would breakeven in 5–6 months.

This wasn’t the story I alluded to in the title “the real life of a delivery rider in Dubai”, so I’ll get to that now.

Many of the delivery riders in the UAE are of mixed language ability, originating from Bangladesh, Pakistan, India and Nepal. However, they have all received the same training in the UAE.

This is where I stick my neck out to offer another objective finding…

Many of the riders I’ve interviewed and surveyed truly do not understand how to ride safely, the fundamentals of the vehicle they are straddling each day and most don’t care, they have a job to do “deliver to as many, as quickly as possible”. RED ALERT!!

I took to the roads upon a byka offering free deliveries to friends and customers for seven days and the results were drastic.

Car drivers would cut in front of me, honk and disregard my road position, undertaking and causing me to be very aware of them (way more so than on my electa).

My fellow peers (delivery riders) saw and greeted me at the lights, asking questions about the byka, telling me how busy they were, how many deliveries they’d done that week. All interesting factoids, then we were off to deliver goods to the destination (some more safely than others). Four riders in one day had ran out of fuel… I’ll address my earlier point now. Why? Or Why! Several of the riders were given a AED 10 per diem to buy food to help them avoid dehydration, yet as the riders have to pay for their own fuel, they used this to avoid their personal fuel expense! Plus, they “didn’t have time” to stop and refuel themselves! There’s a greater issue that needs addressing.

Day three and I felt like one of my peers, I stopped where a few had collected and started to chat, shaded under a tree we shared stories, of course they were skeptical, and the language barrier added complications, however, my takeaway was these frail looking guys sent their AED 900 to AED 1,800 back to their families each month with ‘disappointed acceptance’. None were begrudging and many mentioned they weren’t happy but “didn’t have a choice”. They felt they had no voice and were in fear of losing their jobs if they spoke out.

Several of the riders I spoke with over the week had spoken out, but nothing was done – six months later they gave up. I also asked them about the change in working conditions over the past 12 months (times of Covid) they had all increased their working hours and kms travelled by 30–40% per day! 20 riders reported they used to travel 120kms, which has increased up to 220kms! At the cost of fuel affecting their monthly salary.

There were many conversations about salary, some not receiving any and getting paid per delivery, others receiving yet had higher costs of vehicle lease, health insurance, motor insurance, even paying their visa costs.

What do the riders really feel?

One interview I did manage to record was working for one of the most prominent food-delivery companies in the region, these were the bullet points:

“I hate my job” he began by saying.

• Paid AED 7.50 per delivery (the pay structure had changed several times since he started working)
• No health insurance
• Had to pay own visa
• Had to pay own fuel (AED 350 per month)
• Had to service his old bike every 5 days (1,250kms)
• Customers aren’t respectful.

All of his friends feel the same (not all working for the same company)

His three main concerns: Being respected for the hard work he performs, doesn’t want to live in fear all the time and he wants to be paid enough that his family in India are supported.

Surely this has to stop?! But what is the solution? We clearly understand the problem.

I believe there is one answer, that addresses all three problems; Environment, Safety and Profitability, but this would cause a restructure of operations — which can only really be implanted by regulation change. If the government wants to rid the fatal statistics, support the hyper-growth delivery sector and the welfare of those servicing the industry, a switch to EV really is the answer.

What about the CapEx vs. OpEx consideration?

ONE MOTO have run the figures on operating an electric fleet validating the return on investment would breakeven after 5–6 months (conservatively) and 9 months (worst-case). Could this mean the industry’s operators could report profit? Indeed it does!

One customer reported their savings and environmental focus to The National [full article], the video also says it all:

If you are an operator wanting to continue the lease of vehicles then please do get in touch and we can discuss how we can make this possible for you.

The real-time stats will highlight what the industry needs and if you truly have the want and need for a sustainable fleet whether your mandate is environmental, financial or safety — we have the answer, but you’ll need to reach out to discuss how we can work together to make it happen.

With new government regulations surrounding delivery riders and the vehicles published on 5th January this year, the regulating bodies are taking notice, so you can action before a reaction creates an unwanted must for your organisation.

My findings as the real life of a delivery rider was compounded by the insufficient training offered to ‘high in-demand’ riders. The lack of respect on the roads by drivers. So may I ask, give way, respect they are doing a job (just like the rest of us), and the pressures they are going through daily might be comparable to your own.

If you were wondering the kms in my week of “real life of a delivery rider” travelled in that week and the costs associated:

I travelled a total of 1,001 kms costing just AED 10!

Charged up 6 times.

Thank you for reading.

Adam Ridgway
CEO, ONE MOTO
www.one-moto.com

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UAE F&B survey – what restaurant operators need https://one-moto.com/uae-fb-survey-what-restaurant-operators-need/ Mon, 01 Aug 2022 05:05:00 +0000 https://one-moto.com/?p=2281 A survey conducted in at the end of last quarter of 220 restaurant operators, third party logistics and 1,206 consumers, the results and need to find a solution to the last-mile delivery sector is of paramount need. We are sharing the discoveries below.

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Facts Behind Food Delivery: The True Cost To Restauranteurs https://one-moto.com/facts-behind-food-delivery-the-true-cost-to-restauranteurs/ Thu, 21 Jul 2022 08:28:00 +0000 https://one-moto.com/?p=1160 Regularly trawling the news to stay ahead of the latest reports on the environment, the industries we support to create a solution led answer to the problems we read about. This latest article from The Economist led us to a ‘thought piece’ on the facts behind food delivery, the true cost to restauranteurs as a whole and a localised problem/solution.

Multiple restaurant owners believing in a secure future by investing in eateries from 2014 had a belief “people would always need a good place to eat”. Many restauranteurs during these times didn’t think of it as somewhere that did takeaway. Most restaurants [back then] were doing a good trade without offering delivery. But the graveyard of failed businesses is full of proprietors who refused to adapt. It turned out that ‘you needed to be on board. You could always stop if he wanted to. Right?. Food apps (aggregators) took a commission of 25-30%, which is high. Once staffing, food costs, rent and taxes were factored in, restauranteurs are left with a margin of less than 10%. Still, many believe you could make it work.

Many years later, after making a steady profit, restauranteurs earn enough to invest in a second/third restaurant in prominent locations, with a constant flow of passing tourists, shoppers and office workers. Then the pandemic struck. Suddenly proprietors were in panic with rent staff and other OpEx costs and found their customers had vanished. Turning to the delivery apps once more, this time for sheer survival. The aggregators delighted to take them on. But the commission [for many in fact increased up to] 35%.

Some restaurateurs describe delivery apps as an addiction.
They know the habit will harm them, but it provides a short-term fix

A painful quandary ensued, taking reasonable business decisions throughout, yet the maths no longer added up. With every ominous ping of the tablet collating online orders, with every buzz of a receipt printing, with each helmeted courier waiting outside the restaurant, many were losing money.

One restauranteur when interviewed said, “You need support from your business partner, and for us [aggregator] is like a business partner,” he told me. “I feel they let us down when we really needed them.”

Uncertainty is inevitable when running a business. Food-delivery apps have been a lifeline to many restaurants throughout the pandemic, though some restaurateurs describe them as an addiction. They know the habit will harm them in the long term; nonetheless, it provides a short-term fix. But the relationship may be more accurately compared to the Babylonian lottery: though the apps chip away at their finances, restaurants feel compelled to buy yet more tickets.

To an outsider, the business models of food-delivery apps seem perplexing. In America the market share of each of the Big Four – Grubhub, DoorDash, Uber Eats and Postmates – has fluctuated over time, as those that made initial land grabs for city centres have been overtaken by other firms that focused on suburbia (a bet that the pandemic has handsomely rewarded). Grubhub used to dominate the market but in many places – apart from New York City – it has been superseded by DoorDash, which is now responsible for more than half of all food deliveries in America by value and is worth $70bn.

One thing has stayed constant: these companies all lose money. The apps know they aren’t going to make a profit yet. Their strategy is different: to steal restaurants’ customers. The apps “are simultaneously selling these same customers to your competitor across the street, but, don’t worry, they are also selling their customers to you.”

Delivery services have already attracted scrutiny – and often vilification – for using gig workers to fulfil orders, a model derived from Uber. They have also been criticised for adding restaurants without their permission or conspiring with Yelp, an online business directory, to push premium-rate numbers that charge restaurants a “referral fee” for each sale.

Such practices have often drawn attention away from something less overt and more profound: food-delivery apps are disrupting the restaurant industry itself. Restaurants have had to question where to base themselves, what to cook and, in a few cases, whether they will ever serve customers in person again. The results will have implications for what, where and when we eat in the future.

That’s an international take, but what about the UAE?

At their most basic, restaurants exist to fuel us. For most people, though, they’re about far more than that. Think of your favourite restaurant. Sure, you might picture a dish you’ve eaten. But it’s more likely that what actually comes to mind are all the experiences you’ve had there, whom you were with, how it felt to walk in through the door. For the city-dweller, a favourite restaurant might be your local or somewhere you travel to for special occasions. But it is invariably anchored to a particular place. A restaurant is a distillation of a city – when we enter a restaurant, we briefly enter another world, but it is one that reflects our surroundings.

Over the past year, the already hyper-competitive food [and other product] delivery market has seen an abundance of even more competition sprouting, offering similarly the same solutions, with a belief they can make a difference, but when looking at the costs there’s a stalemate. Yet, many riders seem to brunt the burden of these operational changes.

In the UAE, many riders have to pay their own fuel. In some cases they also pay to lease their own vehicle. Almost all have to pay the cost of their visas to their ’employers’ as well as pay their own insurances – yet aren’t these delivery heroes the ones who are working tirelessly to delivery our orders on time? To who’s benefit?

Outside a restaurant, the parking area is a spectrum of colour of semi-branded, bruised and battered delivery motorcycles, a few were asked about the companies they work for, who is the best and who will ‘win the war’? A shocking retort was fed back “It doesn’t matter, at the end of the day, we are all working to make a few people rich”

To switch the logistical and operational processes at the aggregator level (whilst trying to achieve profit), retain clients and acquire customers, there is a different approach to business, and it’s focusing on the bottom line (many of which haven’t had the time to look up and see the change options in front of them). Traditionally the delivery aggregators are asset-light operations and are trying to fulfil demand without liability obligation, which curbs the profitability, resulting in a shift towards an internal readjustment of costs (fuel, servicing, maintenance, packaging to name a few).

There is another way and it does not negatively impact, nor fall upon the riders. It’s the cost of transportation, which research suggests can result in 40% of the costs of delivery. Is the answer to switch to electric vehicles? For many other parts of the world “yes” is the only response. However, even with the sentiment, vision and agendas the UAE government have implemented and are working towards the sustainable values of the companies operating aren’t mirroring these efforts with the gusto they will be forced to in the near future.

BENEFITS: Owning the asset of electric transport

  1. Complete control of the OpEx in delivery
  2. Maintain the rider welfare
  3. Increased profits from the bottom line
  4. Very low depreciation on EVs
  5. Infrequent yet, easy, affordable ‘fixing’ and servicing
  6. Consistent brand quality
  7. Benefit from the intense and highly prized ‘Green PR’ as a result of the commitment.

Is this the answer? Possibly, but it will take the auditors and procurement managers to look at the greater picture. However, it also comes with a ‘level up’ need and commitment from the governments. Offer EV incentives. There used to be several incentives, yet although nominal, they helped avail awareness. When you look at the rest of the world spearheading EV initiatives, rebates, subsidies the GCC as a region are slower on the uptake – with the respect of the sheer weight of public sector policy changes, there are small steps which could support this much needed adoption.

The question [for now] remains, why are these not in place? Free charging, free parking and a 0.5% reduction in interest rate are all acknowledged, in no way are these the kicker for the decision to switch.

What do the customers want? Are they ready for electric mobility?

In the food delivery sector, this is in demand. In February this year ONE MOTO ran a public survey to discover if the needs, wants and sustainable values of the customers are reflected by the companies operating? Unsurprisingly when asked, “if you could order the same meal, for the same price and delivery time, would you choose a company with sustainable values, or one that wasn’t” 99.3% said they’d choose the sustainably focused business. In addition, when asked “how much would you be prepared to pay for this” the median was AED 6.9 extra. Consumers are widely reported to buy from brands with aligned values, we know this from the media, but also from the tireless research when building ONE MOTO, a business built on five core values; Sustainability, Affordability, Convenience, Technology and Experience – ONE MOTO are aligned with the future of consumerism, so why aren’t the companies who operate in a purely customer focused realm?

Last year, I was invited for a conversation to advise and guide a solution to a very big concern. 4,000 outlets in the UAE had come together to complain about the aggregators, the high commissions, the unjustified rental charges and they wanted an immediate solution. We crunched numbers, the issues and the decisions weren’t immediate – many restauranteurs and F&B groups launched their own apps, trying to acquire their own loyal customer base (which was to the origins of the aggregators), many have seen success with this, but to whose cost? The proprietors are still needing to lease the vehicles from third parties at a cost they cannot control, with riders who aren’t ‘on-brand’ or providing a level of service the big aggregators built their businesses on. Alas, the onslaught of the cloud kitchen arena. Born through the need to cover costs, be present and generate profits. Alas (once more) VCs from the region funding these initiatives, yet they still need to deliver their fare to the hungry customer. The new alliance of dark kitchens and delivery apps poses an existential threat to the restaurant, one of the last bastions of the dining scene. Butchers, bakers and grocers have been replaced by supermarkets. Cinemas, cab companies and bank branches have shrunk into apps on a phone. The restaurant has always been a curious institution: a business masquerading as a cultural and social hub, or perhaps vice versa. Until now, it has been extraordinarily resilient.

There is a solution, but it takes commitment and a collaborative mindset.

A switch to electric delivery vehicles as already seen and pioneered by Jumeirah, Sarood Hospitality and others – are committed, dedicated to a cause and have spent time looking at the financials, the rider well-being and pledged to bring change. They understand the facts behind food delivery and the true cost to restauranteurs, themselves.

It won’t be long before many more realise the benefits and the government commit policy amends to align with the Green Initiatives of our leading families and ONE MOTO are championing this change. “We are prepared to match the rebate offered by the government in a bid to incentivise EV uptake and draw upon the attention to OEMs of cars to follow suit”. It shouldn’t be the responsibility to the public sector to forfeit profits, taxes or revenues – of course technology is expensive and the R&D costs a long-term ROI, but if other governments have offered it, maybe the UAE can implement as well?

A recent conversation with one aggregator openly told me they offered a ‘per diem’ to their riders for food and water each day, but with the high pressure to deliver, the weak payment terms, threat of salary reductions and the downtime they incur, they pocket this money and many have fainted, been taken ill, used for additional fuel and even had accidents. An article published by Thomas Edelman of RoadSafety UAE last year announced more delivery rider accidents and fatalities recorded. This is now a very serious issue that must be addressed. Not to look at the riders as poorly trained, erratic driving behaviours but ask, “why?”

The Guardian (this week) published a new report suggesting traffic pollution is twice as harmful than previously expected. When it was reported pollution can reduce the lifespan by 3-4 years – are those of us dwelling in city environments ready to ‘call it a day’ eight years early? I’d like to think not.

We see the investments in mobility solutions rolling in weekly across the world, very tech based businesses benefitting from the surge in VC funding to facilitate growth, but who will win? The largest and deepest pockets who leak ‘investment’ in the continued high CaC? Or those who work towards a profitable and sustainable growth? We’ve seen the result and can introduce you to the answer, you’ll just need to ask.

The ONE MOTO team fully appreciate the delivery riders do not care about the amount of CO2 their costing, the incredibly high hydrocarbons they omit each day, or indeed the fatal consequences traffic pollution has on their health. They do care about providing for their families. The same as all of us right?!

Companies and governments do need to align, collaborate to bring change.
We’re all here for a very short amount of time, it’d be nice to feel like the decisions you’ve made contribute to making a difference.

What does the future hold in store for the industry?

Right now it’s a stagnant war between a mighty few and several underdogs with an eye on acquisition. Restauranteurs working on 3-4% profit margin. Riders struggling to earn a justifiable salary. With so much disruption in the world around us, and with an ability to bring change it’ll take a few ‘risk takers’ to embrace something new, make a name for themselves and a difference to those they work for. Is the industry sustainable? Many don’t believe so. Is the sole answer a switch to EVs? No. It’s certainly a very positive start, and with profitability greater opportunities will unwrap themselves.

If you’d like to discuss the future of mobility, The facts behind food delivery: the true cost to restauranteurs, discuss the small print of life and share thoughts, I’d welcome the opportunity.

Thank you for reading,

Adam Ridgway
CEO, ONE MOTO
one-moto.com

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Should delivery vehicles go electric in the UAE https://one-moto.com/should-delivery-vehicles-go-electric-in-the-uae-2/ Mon, 14 Feb 2022 06:00:00 +0000 https://one-moto.com/?p=1724 Motorcycles emitted far more smog-forming hydrocarbons and oxides of nitrogen, as well as the toxic air pollutant carbon monoxide. The motorcycle uses 28% less fuel than the comparable car and emitted 30% fewer carbon dioxide emissions, but they emitted:
416% more hydrocarbons
3,220% more oxides of nitrogen and
8,065% more carbon monoxide

It’s so much more than a mouthful of statistics to digest, what do they really mean?

ONE MOTO have been running the numbers and lobbying for change, for Dubai to become a smart city it needs to embrace change, which is exactly their mandate. With a vision of 90% of all limousine transport to be electric by 2026 the UAE is poised for a monumental shift towards EV, yet what other changes does that bring to light? With passenger transport already a focal point of transport EVolution, we have explored the Why should delivery vehicles should go electric. The need is now and ONE MOTO have built a business on it.

Here are some very alarming figures:

NUMBER OF Petrol Motorcycles on UAE roads 15,000

COST OF FUEL per litre AED 2.20

AMOUNT OF FUEL USED per bike per month AED 540 

AMOUNT OF GALLONS PER TANK 37.42

AVERAGE REFUELLING PER WEEK 2.7

ANNUAL FUEL USAGE 12,000 Motorcycles 58,195,584 

ANNUAL FUEL COST 15,000 Motorcycles AED 77,760,000 

ANNUAL CO2 per year 12,000 Motorcycles 16,560 tonnes

ENVIRONMENT.

Petrol Motorcycles produce 16x more hydrocarbons than SUVS and busses.

Air-pollution is the greatest killer to humanity (shortening life by 2 years).

15,000+ delivery motorcycles on the UAE roads.

COST-SAVINGS.

ZERO SUBSIDIES – The government may eliminate the need for fuel subsidies costing over AED 13 billion per year (according to a study).

Halved OPERATIONAL costs –  The average cost of food delivery is AED30 (for some companies), yet the consumer is only being charged AED7.

Reduced customer expenditure – Relieving the heavy OpEx to businesses, should hopefully reduce the cost to customers, with many customers surveyed would choose to order from an eco-friendly retailer over one that isn’t.

UAE BENEFITS.

If the UAE pioneer this movement it will further embed the message of The Emirates in the region and on the global stage as a progressive though-led and environmentally conscious country.

ONE MESSAGE

“To provide sustainable, cost-effective, electric transport solutions to service the first/last-mile and food delivery industry”.

Air-pollution as mentioned is the greatest killer to humanity and the affects of Greenhouse gasses is alarming, but for most un-relatable. With a few clicks of this blog and a little research, you’ll be enlightened to what the issues are facing us, yet scaremongering isn’t our intention. Small amendments to each of our lives will produce valuable change to how each of us live.

ONE MOTO have produced a series of ‘for purpose’ vehicles:

byka – the delivery motorcycle
deliva Mobicool 3.0 – the delivery van

As well as a range of private vehicles for the daily commute and micro-mobility let’s run some simulations:

PETROL DELIVERY MOTORCYCLE

  • Cost per vehicle 1 year
  • AED 8,500 avg. purchase price
  • AED 7,300 fuel
  • AED 4,400 maintenance
  • AED 2,400 servicing
  • AED 100 salik
  • AED 160 registration
  • AED 1,500 delivery box
  • AED 24,360 TOTAL

ONE MOTO MOTORCYCLE

  • Cost per vehicle 1 year
  • AED 14,950 purchase price
  • AED 0 fuel
  • AED 0 maintenance
  • AED 0 servicing
  • AED 0 salik
  • AED 0 registration
  • AED 0 delivery box
  • AED 14,950 TOTAL

PETROL DELIVERY VAN

  • Cost per vehicle 1 year (2020 Toyota HiAce)
  • AED 103,500 purchase price
  • AED 38,000 fuel
  • AED 6,000 maintenance
  • AED 4,400 servicing
  • AED 100 salik
  • AED 160 registration
  • AED 68,000 chilled grocery conversion
  • AED 220,160 TOTAL

ONE MOTO VAN

  • Cost per vehicle 1 year
  • AED 104,571 purchase price
  • AED 0 fuel
  • AED 0 maintenance
  • AED 0 servicing
  • AED 0 salik
  • AED 0 registration
  • AED 0 chilled grocery conversion
  • AED 104,571 TOTAL
Also available as a flat bed or pick up van

By converting your fleet to electric, you can double the vehicle count for the same price as just one petrol/diesel van. Thats’ not even calculating the downtime costs for maintenance, servicing or re-fuelling.

A business built on values

Built upon five core values to our customers:

  1. Environment
  2. Convenience
  3. Technology
  4. Affordability
  5. Experience

“Our aim is to be the leading electric vehicle manufacturer and distributor within the region with global presence through distributors and dealerships.

Expanding our reach to areas of the world less financially sound and provide a cost-effective and sustainable transport solution allowing families to travel, transport and financially provide for their future”.

What are the next steps?

ONE MOTO are taking orders online right now, and commitments are being made to each of our customers.

Hopefully, when reading this, it’ll spark a catalyst and a want for change, running a few financial simulations you’ll realise how you can increase your fleet, reduce your overheads and deliver a cost-effective, environmentally aware solution to the UAE.

If you would like to act on change, please do get in touch with our team.

Thank you for reading,
Adam Ridgway
CEO, ONE MOTO

[Cover image courtesy of Khaleej Times]

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ONE Pledge https://one-moto.com/one-pledge/ Mon, 10 Jan 2022 04:44:00 +0000 https://one-moto.com/?p=2061
ONE MOTO PLEDGE THEIR SUSTAINABILITY AGENDA

To ONE MOTO Sustainability is more than a buzzword, it’s one of our five values. We are more than a Sustainable mobility brand, our DNA is made up of a series of commitments aligned with the United Nation’s Sustainable Development Goals. As it’s the start of a new year, we’re committing our pledge to the environment, our stakeholders and partners. This series of articles will be demonstrating our measurable ambitions and achievements.

Recently, I was introduced to an incredible team of ‘Sustainabilists’, led by Alexandra Smith and Michael Penrose from The Sustainability Group, FuturePlus based in the UK. They’ve created a business to support other businesses with their sustainable agendas and allowing them measurable metrics of achievements and ambitions.

As many of you would have witnessed at last year’s COP26 many of the world’s leaders were discussing global agendas with a troubling task of aligning goals, objectives and directives, my personal take home was one word, “action” very eloquently delivered in a speech from Hon. John F Kerry. Which got me thinking, “what is our pledge and how can we take action?

Before COP27 in Egypt and COP28 hosted in the UAE, the team and I sat to discuss measurable ambitions and help demonstrate to the world how ‘The UAE take action whilst others talk’ not undermining the audacious complex task ahead, instead the purpose is to bring change to the forefront of our customers, stakeholders and you reading this.

Working closely with FuturePlus we’ll outlining our goals, and transparently showcasing how we, as one small business are committing to a future.

ONE PLEDGE

Becoming an ever more sustainable company is a constant journey. For us, it requires taking a broader look at sustainability and social impact. We truly believe that acting as a responsible business – one which is fully committed to positive social and environmental impact – will result in us becoming more resilient and adaptable.

We believe every company can, and should, play its part in the creation of a more just, equitable and sustainable world.

Following on from the shared sentiment of FuturePlus, “Sustainability is a practice that evolves within a company. It is a sense of responsibility that requires taking a look at all its business practices through the lens of sustainability and social impact.

It is an awareness of the employees, products, services and supply chain that are interconnected throughout a company’s business model. It is an acknowledgement of something bigger than a company’s four walls – a greater good.

We believe that when we approach sustainability as an ongoing process, there is room for continued environmental, social and financial benefit. And that acting as a responsible business – one which is fully committed to positive social and environmental impact – will result in more resilient and adaptable organisations.

Our promise to our clients, the public and the world at large is to be honest and transparent in our current sustainability standing, to share our learnings and report on our progress so others can learn by example, and most importantly, to always stay committed to our ambition for a more just, sustainable future.”

At every milestone of our journey, we’ll be showcasing just that… our journey. An agenda isn’t something we can all inject with immediacy, it starts with a step. If you’d also like to join us and the platform set our by FuturePlus click here and pledge.

Thank you for reading.

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Bottom Line Only For The Delivery Industry https://one-moto.com/bottom-line-only-for-the-delivery-industry/ https://one-moto.com/bottom-line-only-for-the-delivery-industry/#respond Tue, 04 Jan 2022 06:00:00 +0000 https://one-moto.com/?p=1226 Your Profits = UP
Your CapEx = DOWN

ONE MOTO are constantly building upon the framework of Smart Mobility and pioneering future mobility in the region. Here is the latest news from the world of EVs and see if delivery operators can save restaurants.

Is this the end of 3rd party operators?

With the heightened commands from restauranteurs to reduce commissions, outlets are uniting to create a new vertical in this hyper-competitive market:

ONE MOTO BYKA 2021 MODEL

Do you want to know where operators can save up to 74% OpEx?

Lets look at maximising profits from the bottom line up…

Bottom Line Profits

In recent times, companies are finally looking at bottom line savings to maximise profits (or even just to stay in operation), ONE MOTO believe we can save operators up to 74% OpEx by reducing the cost of transportation.

Based on 350 bikes

Monthly fuel costs AED 75,000

Monthly servicing            AED 105,000

Monthly maintenance    AED 45,000

Monthly leasing               AED 175,000 (AED 500 per bike)

Annual registration         AED 56,000

Salik Tag                          AED 35,000

We don’t need to tell you the costs associated with deliveries, you know this better than us, so if we may show you the cost of operating a ONE MOTO delivery bike:

‘Fuel’                                 AED 3.6 (per 1,000kms)

Monthly servicing          AED 0

Monthly maintenance   AED 0

Annual registration        AED 0

Salik tag                          AED 0

Guarantees

ONE MOTO offer you peace of mind with a 24-months warranty on batteries, motors, controllers and your service contract in Dubai.

A quick calculation will demonstrate the financial savings from your bottom line, how you can pass these savings on to your restauranteurs to retain and grow your business.

Environmental Savings

We are aware of the published articles surrounding air pollution, how Covid has created a greater quality of air we breathe, yet what does this look like in statistics?

Just 1 petrol delivery motorcycle produces:

  • < 8,000% more carbon monoxide.
  • < 416% more hydrocarbons
  • < 3,000% more oxides of nitrogen
  • There are 15,000 motorcycles in the UAE.
  • There are also 37m in India… and 20m in Pakistan!

Should delivery vehicles be electric by 2024?

Here’s the answer (and if indeed), it is possible: food delivery operators can save restaurants.

In Summary: Electric Vehicles are Now

  1. The future is green, we also know this.
  2. The demand for delivery infrastructure is vast.
  3. Bottom lines are more important than ever.

Is it time to discuss switching your fleet to electric?

Click here to book a test ride.

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New Biden plan would give e-bike buyers up to $1,500 in tax credits – ONE MOTO are heading stateside! https://one-moto.com/new-biden-plan-would-give-e-bike-buyers-up-to-1500-in-tax-credits-one-moto-are-heading-stateside/ Sun, 21 Nov 2021 07:11:00 +0000 https://one-moto.com/?p=2024 The current “Build Back Better” proposal would offer a credit of up to 30 percent against the cost of the bike.

There’s good news in the latest version of the White House budget deal: the proposed federal tax credit for new electric bike purchases has survived the most recent round of Congressional bloodletting. Not only that, but it’s been restored to its former glory of 30 percent, after the House of Representatives slashed it to 15 percent

Still, it’s a hugely important proposal for a product that is still struggling to reach mass adoption. If the deal passes in its current form, e-bikes would become significantly cheaper for most Americans. In turn, that could mean a significant change in the transportation options for millions of people around the country. 

The legislation would offer Americans a refundable tax credit worth 30 percent of a new e-bike’s purchase price, capped at $1,500. All three e-bike classes would be eligible for the tax credit, but bikes with motors more powerful than 750W would not. The credit would be fully refundable, which would allow lower-income individuals to claim it.

The 30 percent credit starts to phase out for bikes that cost more than $5,000. The great news for ONE MOTO customers, our vehicles max out at just $4,200. This includes the RYDA Collection and Electa, Commuta and Byka. The program is also means-tested based on tax status, meaning the credit would begin phasing out $200 for every $1,000 spent on the purchase for individuals who earn $75,000, heads of household earning $112,500, and married couples who file jointly earning $150,000. 

E-bikes are significantly more expensive than normal bikes, typically costing anywhere from $1,000 to $8,000. But they also have the potential to replace car trips for a lot of people, which could help make real progress in the fight against climate change. A recent study found that if 15 percent of car trips were made by e-bike, carbon emissions would drop by 12 percent.

There are other benefits for cyclists tucked away in the massive 1,600-page bill. People who ride bikes to work or use bike-share would be eligible for pre-tax commuter benefits similar to those who drive and park or take public transportation to work. Under the proposal, employees would be allowed to receive a bicycle benefit of up to 30 percent of the parking benefit — currently equivalent to $81 a month, less than $1,000 a year, for bicycling.

As ONE MOTO continue their global expansion from the UK, UAE, India, Australia they are heading the the USA through a distribution network of dealerships, retailers and Direct-to-Consumers through their online e-commerce platform www.one-moto.com

For more information about becoming a dealership in the USA, get in touch.

Thank you for reading.

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Dear ONE shareholders, https://one-moto.com/dear-one-shareholders/ Mon, 06 Sep 2021 10:09:00 +0000 https://one-moto.com/?p=1965 On behalf of our team at ONE MOTO HQ, I am excited to share that ONE MOTO has announced the next raise of $10 million in Pre-Series A. ONE MOTO as a company is now valued at $60 million (pre-money).

This new capital is all about enhancing the ONE MOTO expansion and rewarding sustainability – an engagement platform driven by technology supporting your investment. Over the course of the coming months, (as we complete the raise) we plan to deploy this funding to develop new technology and features, hire great talent, grow internationally, and expand our reach.

power in motion, one moto x.o the global rebrand

RELEASING NEW PRODUCTS AND TECHNOLOGY

ONE MOTO as a series of electric vehicles are designed to keep you moving. It seems appropriate then that ONE MOTO as a business model is designed to keep moving us, the ONE MOTO team. As a sustainably focused business we feel a deep responsibility to be constantly upgrading our offerings every week, month, year to deliver value to you and our customers.

With this new capital, we will accelerate efforts to release new growth to our members, customers and partner experience. In just the past months, we’ve announced our expansion into 13 territories in India, four in Australia with deep conversations to launch in the UK, Kenya, Spain, Ghana, Ethiopia, Bahrain, Saudi Arabia, Qatar, Jordan, Egypt, Pakistan and the United States. The new fleet in prototype phase includes the modular development of our electric two-wheeled vehicles, enhanced app and battery technology. We’ve been developing the range of vehicles with an international team of designers and engineers. I can tell you that the new vehicles in our pipeline are incredible and, when we announce our Series A round in Q1 next year, will see the launch of several assembly plants strategically placed around the world including; India, UK, Kenya, Australia, Pakistan and The United Arab Emirates.

Adam Ridgway the road ahead “to bring change” to the way we move

HIRING GREAT NEW TALENT

In order to keep building and researching at a breakneck pace, we are going to be growing our team dramatically. In the last 18 months, we grew in valuation from $8m and a team of four, to $60m and a core team of 20 located in UK, UAE, India, Australia and Kenya. This is just the beginning. Our 2021 forecast of growth was four territories by 2021 and as we close out Q2 we are already at 21 territories with another 15 expected to be signed by Q4. This leads us towards our 100 cities, 1m vehicles and 1bn tonnes of CO saved by 2028. If you’re reading this and thinking ONE MOTO might be the right place to grow your career, please check out our Careers page.

EXPANDING INTERNATIONALLY

ONE MOTO will become more accessible around the world and expand in countries throughout Middle East, Africa, Europe, Asia, and beyond. We’re growing aggressively through a solid network of franchise partners. From ‘micro-investors’ to corporate dealership networks. We know that there are many of you around the world who are interested in joining the ONE MOTO community of commuters but haven’t been able to yet. We’re going to change that.

ONE MOTO byka the all-electric delivery motorcycle

BRINGING ONE FLEET TO YOU

ONE Fleet is our game-changer in the last-mile sector. Offering fleet financing to all delivery aggregators, through a global financier. We currently have a $50m fund allocated to offer financing for corporate fleet operators and this is just for the GCC region. Our CEO, Adam Ridgway is heading to the UK in October to continue discussions of a UK assembly plant and a UK wide roll out plan. We are going all out!

#betheONE

ONE MOTO has already began discussions with key sustainably focused celebrities to bring ONE MOTO to our customers through “value aligned personalities”, collaborations with global brands and film production houses.

We can promise you will see ONE MOTO on more and more platforms in the coming year.

A NOTE OF GRATITUDE

I want to thank you all for being ONE MOTO shareholders. I started ONE MOTO as a ‘vehicle’ to bring change. For many years building ONE MOTO was a challenge, educating to the benefits; of EV to the environment, the pockets of the consumer and to the fleet operators. In the early days we didn’t know if what we wanted to build was even possible. What always pulled me through were the encouraging stories from ONE MOTO customers and a deep sense that the technology we were building really mattered.

We’ve been featured on CNN, been awarded UAEs Most Sustainable Business of the Year, featured in international press, Entrepreneur magazine, and had the most positive feedback from customers in each country we sell. Hearing these stories and receiving requests to be a part of ONE MOTO from employees, customers, shareholders, JV partners and as a franchise network harnesses that the hard work the team have committed is well received.

Last week, I told the ONE MOTO team the new injection of capital will require both a heavy dose of humility and the same sense of urgency and tenacity that got us here. We will face off head-to-head with the largest and most valuable EV companies in the world–some of which have no qualms copying us very directly. We will engage in highly ambitious research and development and release products for you on the cutting edge of sustainable mobility, electric vehicles and the technology that drives them.

We are grateful for the opportunity to take on these new challenges. I ask that you keep sharing your stories with us and holding us accountable to our shared mission: #betheONE to bring change.

Thank you,
Adam Ridgway

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