How Helbiz Plans to Serve D.C.'s Micromobility Scene

Starting in the new year, micromobility company Helbiz will be the newest player to bring its dockless vehicles to D.C. After the District Department of Transportation (DDOT) announced an overhaul of the permitting structure for dockless vehicles for the year 2020, four mainstay scooter companies will have to leave, and Helbiz will be the newest one operating electric bicycles.

Helbiz was one of five companies to apply for e-bike permits under the new phase of DDOT’s dockless vehicle sharing program. The agency selected companies using a 198-point scale assessing their commitment to equity, safety and accountability.

Founded by Italian-American entrepreneur Salvatore Palella, Helbiz is headquartered in New York. Its only U.S. market so far is Miami, where it has a fleet of scooters. After a successful e-bike launch in Rome in November, Palella said that several factors attracted Helbiz to D.C. as its first U.S. e-bike market.

"We have committed to deploying throughout the District, including in low-income areas ..."

Palella cited D.C. Mayor Muriel Bowser’s commitment to Vision Zero – the goal of having zero traffic fatalities by 2024 – as one of the main reasons, as well as the District’s plans for safe cycling infrastructure and sustainable transit options.

“The District is uniquely positioned to becoming a model of sustainable urban transportation. From a geographic, demographic and urban planning perspective there is simply no reason for commuting by personal vehicle to be so prevalent,” Palella told DC Inno by email.

Under D.C.’s new dockless vehicle scheme, Helbiz will be one of two companies to operate e-bikes, the other being Uber-owned Jump. Each company is allotted 2,500 bikes to begin with. Palella said Helbiz will deploy at least 500 in January and shoot for 1,750 by the end of February. The company is allowed to have 5,000 bikes by midyear, according to the Washington Post, but Palella didn’t say whether it plans to do that.

“It’s too early to say if we will be seeking to increase our deployment at midyear – this decision will be based on utilization and market demand, not on an arbitrary desire for growth for growth’s sake,” Palella said.

Equitable access was one of the factors DDOT weighed when selecting companies for dockless vehicle permits. D.C.’s Wards 7 and 8, which are largely classified as low-income areas, have historically been shorted when it comes to the availability of dockless vehicles. Palella described several ways that Helbiz will try to be more equitable in its operations.

The company is notably offering the “Helbiz Access Program,” which will give free, unlimited 30-minute rides to users who can verify that their income is at or below 200 percent of federal poverty guidelines.

“We believe Helbiz can be particularly effective as a first- and last-mile solution in historically underserved areas of the District, such as areas east of the Anacostia River. We have committed to deploying throughout the District, including in low-income areas, and are going to focus our community engagement efforts in these areas to help drive adoption of micro-mobility throughout the District,” Palella said.

Helbiz plans to employ 21 full-time and 22 part-time workers in D.C. to manage and maintain its fleet. Helbiz will rely on these employees to recharge and spread bikes around the city, rather than use gig-economy workers as some of the scooter companies do, Palella said.

Helbiz is also launching an apprenticeship program, which Palella said is the first of its kind in the dockless vehicle industry. He offered few details, but said the one-year program will help “develop and train employees with the skill sets that are needed for careers in the fast-growing micro-mobility industry.”

Prices to rent dockless scooters and bikes in D.C. have shot up since the companies started trickling in in the past few years. Helbiz’s bikes will cost $1 to unlock and 15 cents per minute, compared to Jump’s no unlock fee and 25 cent per minute rate. A 10 minute ride on either bike would cost $2.50 – cheaper than any of the scooters operating in D.C.

Palella said Helbiz also applied for a scooter permit in D.C. and came in fifth place; there were four spots. The company plans to try again for scooters in 2021.