I recently attended a panel discussion on profitability featuring representatives from several rideshare providers at Micromobility Europe.
Panelists were asked if their companies were profitable.
Dott was founded in 2018 in the Netherlands and raised$210.8M.
The company is not profitable at company level so far, as its focus has been product investment.
Swappable battery companySwobbeewas founded in 2017 in Germany and raised$6Min a single investment from an energy company.
It’s free, every week, in your inbox.
Tier Mobility was founded in 2018 in Germany, and has raised$646.9Min funding.
According to Georgia Yexley, General Manager at TIER Mobility, profitability varies per city.
Companies were once rewarded for high growth.
For example, expanding fleets and markets.
But now, the focus is moving towards profitability, providing greater complexity.
What factors contribute to micromobility profitability?
A myriad of factors contribute to a companys profitability.
Regulations
More escooter brands on the streets mean a dilution of profits.
Yexley notes that the companys presence in over 530 cities globally offers the company influence over the urban environment.
But tech innovation is also a critical key to profits.
Its escooters in particular have evolved to have a lifespan of over five years, which helps with profitability.
The company also has interchangeable batteries and infrastructure.
This means that fleets are easy to repair.
Many parts are swappable between ebikes and escooters, increasing efficiency.
Helbiz: a case study in financial woes?
Abundant funding doesnt necessarily translate to success.Italian escooter companyHelbiz, has been struggling.
Financiers issue agoing concernwhen theres a worry that a company may run out of money.
We saw this to be also the case withEV startup Canoo.
This weektech layoff tracker Layoffs.fyiannounced on Twitter thatmicromobility company Bird plans to lay off 23% of its staff.
This makes it possible to keep iterating and improving processes and efficiencies.
Otherwise, we would have solved all problems in cars.
In Paris, 66% of riders are male.
Investors have throwna lot of moneyat placing escooters and ebikes into public spaces over the last few years.
This provides an alternative to other modes of transport.
Micromobilityoperators work hard tobuild relationships with cities.
This is critical to ensure smooth deployment.
Micromobility operators have focused on introduction and fleet expansion over the last few years.
YOu need market traction before you’re able to focus on profitability.
They have rapidly evolved in many cities mobility landscapes.
Done well, micromobility provides an extremely useful service that aligns well with local efforts to reduce carbon emissions.
But now its time to show long-term value add by generating profits.
Story byCate Lawrence
Cate Lawrence is an Australian tech journo living in Berlin.
