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20VC with Harry Stebbings: Wayne Ting, CEO @Lime: From Losing $3 on Every $1 to $90M in EBITDA | E1252

📌Key Takeaways

🚀Surprising Insights

He argues that easy access to funding can mask poor operational performance, allowing companies to avoid learning hard lessons. This environment can lead to irrational growth strategies that ultimately harm long-term sustainability. ▶ 00:39:05

Wayne asserts that micromobility is the future, challenging the traditional car-centric model. He highlights that over 1.3 million people die in car accidents annually, a statistic that often goes unaddressed in discussions about urban transport. ▶ 00:53:05

💡Main Discussion Points

Wayne describes how the pandemic led to a 95% drop in revenue, forcing Lime to innovate rapidly. They pivoted to focus on outdoor, single-passenger transportation, which aligned with public health needs during the crisis. ▶ 00:31:05

By designing and manufacturing their own scooters, Lime has reduced the daily decay rate from 3% to a sustainable level. This investment in quality hardware has improved customer experience and operational efficiency, setting Lime apart from competitors. ▶ 00:12:30

Wayne emphasizes the importance of establishing a data foundation to understand key metrics like trips per vehicle and revenue per trip. This focus on analytics allows Lime to make informed decisions that drive profitability. ▶ 00:05:20

Wayne discusses how Lime's expansion playbook involves engaging with local regulators and understanding city-specific transportation needs. This adaptability has led to a high success rate in competitive RFPs, allowing Lime to dominate new markets. ▶ 00:17:00

Wayne argues that Lime's financial success, including $600 million in gross bookings and a 30% CAGR, demonstrates that differentiation in service and product quality is key to thriving in this space. ▶ 00:14:10

🔑Actionable Advice

Establishing accurate metrics is crucial for understanding business performance. Wayne suggests investing in internal tools that provide real-time data across operational metrics to empower decision-makers. ▶ 00:05:00

By designing and manufacturing your own products, you can control quality and reduce costs over time. This investment can lead to a more reliable and enjoyable user experience, which is essential for customer retention. ▶ 00:12:50

Wayne highlights the importance of being able to pivot quickly in response to market changes. Companies should be prepared to innovate and adjust their strategies based on real-time feedback and external conditions. ▶ 00:31:00

🔮Future Implications

Wayne predicts that as cities grapple with congestion and pollution, micromobility will become a preferred option for short-distance travel, leading to increased demand for services like Lime. ▶ 00:53:20

The shift to swappable batteries has already cut costs significantly. Wayne anticipates that continued innovation in battery technology will improve Lime's service delivery and reduce operational expenses even further. ▶ 00:23:20

As the market matures, Wayne expects to see increased competition, but he believes that Lime's focus on quality and customer experience will help maintain its leadership position. ▶ 00:14:10

🐎 Quotes from the Horsy's Mouth