There's been some not so great news recently about the viability of micromobility (and micromobility companies). Happy to share some good news today!
Combining the Tier and Dott businesses, and bringing on $60M+ additional capital to help grow the joint business, gives European cities a sustainable partner -- in both the financial and environmental sense -- that they can count on to provide a much needed service.
And, make no mistake, this is a service that cities need. If you haven't read David Zipper's latest piece in Fast Company, do so now:
https://lnkd.in/eyks8Hfv
As David puts it: "Cities receive a bounty of benefits whenever an e-scooter is used in lieu of an automobile: Emissions fall, roadway space is freed up, and other street users are placed in less danger. In other words, shared e-scooters enhance urban efficiency, sustainability, and street safety."
But, if we want to continue to reap the benefits of micromobility, it's not enough for micromobility companies to tighten their belts and drive towards profitability (though we will have to do that too), but cities will also have to re-think how they prioritize different modes of travel, and how onerous their regulations are for scooters and e-bikes vs cars.
David again: "Placing heavy requirements on e-scooter operators can do more harm than good, potentially driving them out of markets entirely. December’s drumbeat of bad news showed that the days of limitless venture capital dollars are long over for the e-scooter industry. If anything, cities wishing to retain e-scooter access should at a minimum reconsider onerous regulations. They might even need to offer financial support, as a growing number now do with bikeshare."
We are excited to announce a preliminary agreement with Dott to bring our two companies together to form Europe’s leading micro-mobility operator. With our combined expertise, the joint entity will provide riders and cities in more than 20 countries with a safe and reliable service.
With operations in major global cities including Berlin, Brussels, Dubai, Helsinki, London, Madrid, Paris, Rome, Tel Aviv and Warsaw, the business will be well positioned to be profitable and support the transition to more sustainable transport.
The deal will be backed by a mix of existing shareholders from both TIER and Dott, led by Mubadala Capital and Sofina, and including Estari, M&G, Prosus Ventures, Novator and White Star Capital, which are investing €60 million in equity to support the long-term vision of the new joint business.
Read more here: https://lnkd.in/ek43fxEk
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