Yulu, the electric-mobility startup originally known for city bike sharing, has pivoted into serving the gig-economy’s rapid-delivery wave. With new higher-speed scooters, a franchise-and-rent model and focus on delivery riders, Yulu is chasing profitability — but the question remains whether it can scale fast enough and manage costs to actually deliver profits.
Table of Contents
The Pivot & Opportunity
Yulu began with low-speed bikes for commuters in urban zones. Over time, they shifted focus to rental scooters for delivery riders working in quick commerce, food delivery and gig platforms. The rationale: the gig economy wants speed and flexibility, riders need cost-efficient EVs and platforms are under pressure to electrify at scale.
Today, a large part of Yulu’s revenue comes from gig-workers who rent scooters on subscription plans rather than individual urban commuters. The new product line and business model are aligned with this shift.
New Business Structuring
- Yulu introduced higher-speed scooters (e.g., a 45 km/h model) to meet the needs of delivery and service-profession workflows.
- It moved from a fully company-owned model to a hybrid franchise model: in some cities Yulu owns and operates fleets; in others it franchises assets and leases them to operators or riders. This helps reduce direct capex and operating cost burden.
- Rentals/subscriptions: Delivery riders are charged weekly or monthly plans for using Yulu scooters, which gives Yulu recurring revenue rather than one-time transactions.
- Strategic partnerships: The company works with quick-commerce, food-delivery and logistics platforms whose delivery riders use Yulu vehicles, giving Yulu a stable demand base.
Financials & Metrics (Snapshot)
| Metric | Recent Reported / Target Figures |
|---|---|
| Fleet size (recent) | ~45,000 scooters |
| Revenue (FY24) | Approximately ₹120 crore |
| Net Loss (FY24) | Around ₹142.8 crore |
| EBITDA status | Select months profitable; target full year FY26 for profitability |
| Annual Revenue Run-Rate (ARR) | ~$30 million (approx) |
| Funding Proposed | Targeting ~$100 million raise |
Why the Model Makes Sense
- High-frequency need: Delivery operations are daily, repeat and predictable vs irregular city-riding by general consumers.
- Cost efficiency for riders: Using a rental/subscription aligns with gig-worker needs, avoids ownership burden and makes EV access easier.
- Growing market tail-winds: Quick commerce and delivery platforms are growing fast, and they need efficient, greener mobility solutions.
- Strategic asset model: Franchise/lease model allows expansion with less direct asset burden and risk.
- Product fit: The higher-speed scooters target the more serious usage profile (delivery) rather than the casual commuting rider.
Key Challenges & What to Watch
- Scaling while controlling capex and opex: Buying/operating scooters, battery swapping/charging infrastructure and maintenance all cost heavily; losses remain large.
- Profits are still unrealised: Though Yulu claims EBITDA-positive months, full-year profitability is still projected rather than proven.
- Competition intensifying: Other EV mobility providers, battery-swap platforms and even delivery platforms themselves may replicate or bypass Yulu’s model.
- Asset utilisation & rental economics: For rental/subscription to work, utilisation must remain high, downtime (charging/maintenance) must be low and riders must continue to pay reliably.
- Regulatory/operating risk: EVs, fleet rentals, delivery models face regulatory, safety and infrastructure hurdles which may increase cost or slow growth.
- Growth expectations: Yulu’s leadership admitted the company should have been 5×–10× larger; meeting aggressive targets may stretch operations and margins.
Key Takeaways
- Yulu has successfully pivoted from city-bike sharing to the gig-economy mobility play which aligns with major market trends.
- The move to higher-speed scooters, subscription rentals and franchise models gives the company a clearer path toward recurring revenue and reduced capital burden.
- However, the path to profitability remains challenging: losses still high, asset costs heavy and scaling complex.
- For startups and investors, Yulu’s journey offers lessons in pivoting business model strategically, aligning with growth segments (gig economy), managing assets vs rental models and focusing on unit economics not just growth.
- The big test for Yulu will be whether it can not only scale its fleet and rentals, but also maintain healthy margins, keep utilisation high and genuinely deliver sustained profitability.
FAQs
Q1. What is Yulu’s current business focus?
Yulu focuses on electric-scooter rentals for gig-economy riders (delivery, quick commerce, services) using a subscription/rental model and higher-speed scooters, supported by franchise and company-owned fleets.
Q2. Has Yulu become profitable?
Yulu has reported EBITDA-positive months, but full-year audited profitability has not been publicly verified yet. The company targets profitability by FY26.
Q3. How is Yulu different from other EV mobility startups?
Unlike many that focus on commuter mobility, Yulu targets the gig-worker and delivery segment. It also uses a hybrid fleet model (company-owned + franchises) and emphasises rental/subscription over individual ownership.
Q4. What are the major risks?
Major risks include heavy asset costs (scooters, battery infrastructure), keeping utilisation up, competition from other EV mobility players, infrastructure (charging, maintenance) issues and converting growth into sustainable profits.
Q5. Why is this a significant story for mobility and gig-economy watchers?
Yulu’s story intersects three major themes: EV mobility, gig-economy growth (delivery/quick commerce) and asset-light rental/subscription business models. How it executes could influence many other mobility and service startups.
