Taiwan-based electric scooter (e-scooter) battery swap company Gogoro has finally unveiled pricing for the most ambitious e-scooter program in the world. Gogoro’s e-scooter, called the Smartscooter, and access to a battery swap network will cost consumers $4,100 and about $30 per month, respectively. For the company’s first deployment in Taipei, it is offering 2 years of free maintenance, 1 year of theft insurance, and 2 years of free battery swapping. The Gogoro Smartscooter became available for pre-order in Taipei on June 27.
There are several ways to interpret the pricing announced by Gogoro. On one hand, for an exceptional looking and performing e-scooter, the price seems fair. Gogoro’s Smartscooter has a range of 60 miles and a top speed of 60 mph (going from 0 mph to 31 mph in 4.2 seconds). Advanced features, such as smartphone integration, light-emitting diode (LED) headlights and tail lights, an intelligent security system, a digital dashboard, and an overall sleek design, make this scooter far more attractive than most other electric models. On the other hand, many consumers in Asian megacities, including Taipei, are accustomed to paying $500 or less for low-end gasoline-powered scooters. A higher-end, more comparable 125cc gas scooter costs roughly $2,600, which is still considerably less than Gogoro’s Smartscooter.
Lack of Battery Ownership Remains an Issue
Gogoro CEO Horace Luke had previously stated that the company’s e-scooter would be in the $2,000 to $3,000 price range. The Smartscooter was expected to cost about the same amount as a comparable gasoline scooter since consumers of the Smartscooter won’t actually own the batteries used in the vehicles (which constitutes a large portion of the overall cost and value of the e-scooter). Removing the battery from the purchase price was meant to drastically reduce the cost of the vehicle, using more of a leasing-style mobile phone business model, where the initial purchase price of the e-scooter is reduced to encourage early adoption and subscription fees for the use of the company’s battery swapping network will eventually make up the difference over time. It is somewhat surprising that even without consumers having to pay for a battery, the e-scooter is still more expensive to buy than a gasoline equivalent.
Taiwan Subsidies a Factor
Nevertheless, Gogoro claims that when government subsidies and the cost savings of using the battery swap network instead of gas are considered, the overall cost of owning a Smartscooter will be less than its gas counterpart after 2 years. E-scooters do receive subsidies in Taiwan, with the amount ranging from TWD21,000 ($663) to TWD34,000 ($1,074) in most regions. These subsidies should help narrow the gap in price differential and encourage larger adoption of the e-scooters.
While it remains to be seen if Gogoro can win over thousands of customers to support its battery swap network, if successful, a network like Gogoro’s could become the most impactful development in electric transportation since Tesla introduced the Model S. Nearby, enormous scooter markets such as China, India, and Indonesia could see battery swap networks in their megacities sooner rather than later if Gogoro is successful in Taiwan.
For more information on electric scooters, see Navigant Research’s Electric Motorcycles and Scooters report, which forecasts global cumulative sales of electric scooters will total over 42 million units from 2015 to 2024.
Tags: Alternative Fuel Vehicles, Clean Transportation, Electric Vehicles, Transportation Efficiencies
| No Comments »