Shane Torchiana: Yes, sure. I’ll take those, I think, two questions in two parts. So, on the unit economic front, the primary driver we see there falls under the asset efficiency pillar I was referring to. That is mostly about getting more out of the vehicles we have in the cities that we’re in. There will be a few new cities that we add to the portfolio, but the focus in 2023 or the 2023 is about optimizing our footprints primarily in the city that we’re in to make sure that we are on a total co-basis free cash flow generative. And there are sort of three sub points to that. Number one is the demand model that we discussed, so making sure at a very, very local level, the three corner level we have in a data driven way, the right number of vehicles in the right place at the right time where folks want to ride them.
That’s an area where we see huge opportunity as Michael said just in January, February this year, based on real world rollouts, we’re seeing quite a bit of upside by evolving that strategy to make it more data driven. So that’s the biggest piece. Secondarily, there’s improving our repair rate, which we do have some learnings from the Bird Canada folks that I mentioned as we’ve integrated the team so that we repair our vehicles faster and thus improve the rate of deployment onto the street instead of having them in the warehouse. And then number three, we’ve seen a lot of progress in our end of life rate and that has to do with the depreciation that you’ll see blowing through in our gross margin. It’s a non cash item, but that will impact the amount of CapEx that we need to do at the end of the year, which of course has a free cash flow index as well.
So from a unit economic perspective, those are the three major drivers or at least the top three drivers. And then from a regulatory perspective, the second part of your question. Interestingly, this is — it’s early days, micromobility, of course, is still a young category, but broadly that’s been favorable. So it’s the healthiest that it’s been and the trend that we see specifically starting in the U.S. and now bleeding somewhat into EMEA is city’s trends toward favoring two to three operators. They tend to start with a pilot or sometimes even just with many operators in an unregulated fashion and then realize that a few folks are able to follow through on their promises better than others. And they will go to an RFP and generally select those folks.
To give you a few examples, just in the last few months, Dallas, Baltimore, Doha, Abu Dhabi, Seattle, just to name — I keep going, but just to name a few, we’ve all gone through that process with them and we won permits in those markets. And that for us is a massive tailwind, because once you’re in and you build trust with cities as we’ve discussed, you tend to stay. So what we’ve seen in the United States, which we think is a couple of years ahead of the rest of the world, is two players one other have over 70% market share, the vast majority of which has a protected license. That’s sticky. And we think EMEA is going to head in the same direction. So for us that is medium term, long term focus and we find and once we go through those regulatory changes that our merchant tends to approve in a city.
So that’s, as I mentioned, a tailwind as we look ahead.
Wyatt Swanson: Great. Thank you very much.
Operator: Thank you. And our next question is from the line of Eric Sheridan with Goldman Sachs. Please proceed with your question.
