Europe’s largest shared mobility operator is born

Europe's largest shared mobility operator is born

After explosive growth and large-scale financing in the past few years, the shared mobility industry is facing stricter regulation and higher user demands.

The market is now gradually saturated, making it more difficult for new entrants, and competition among existing companies will become more intense, as the shared mobility industry enters a reshuffling phase, and in order to maintain a competitive edge, many companies may choose to consolidate their resources to improve efficiency and reduce costs.

On January 10 this year, shared mobility operators Tier Mobility and Dott announced that they had reached a preliminary merger agreement, which is still subject to some regulatory approvals and is expected to be completed within two months.

The merger will create Europe’s largest shared mobility operator. You can also check the electric bike manufacturers in Europe and the top 10 bike parts manufacturers in Europe for your reference.

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    Corporate changes

    The combined company will be headquartered in Berlin, with user apps still available in the App Store and Google Play Store and no change in scope of operations.

    However, the leadership team has been reorganized, with Lawrence Leuschner, co-founder and CEO of Tier, serving as Chairman of the Board, Henri Moissinac, co-founder and CEO of Dott, serving as CEO of the new company, and Maxim Romain, COO of Dott, continuing to serve as COO of the combined entity.

    Corporate changes

    Alex Gayer, Tier’s Chief Financial Officer, will continue to serve as Chief Financial Officer.

    The Tier and Dott merger also attracted additional funding from existing investors, with Mubadala Capital and Sofina leading the new round of funding, as Tier and Dott investors respectively, and participation from Estari, M&G, Naspers, Novator and White Star Capital, which raised a total of €60 million.

    Estari, M&G, Naspers, Novator and White Star Capital also participated, receiving a total of €60 million, but SoftBank Vision Fund, one of Tier’s backers, did not participate in the round.

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    Shift in business focus

    Previously Tier and Dott have also been working to expand their business areas, with Dott currently active in 40 cities in seven countries. The company owns 40,000 scooters and 10,000 bikes and has raised a total of €210 million through equity and debt.

    Tier currently operates in Germany, Austria and Poland, as well as Qatar, Saudi Arabia and the United Arab Emirates, in addition to acquiring Coup, which provides e-scooter operations mainly in Berlin and, in raising its Series C funding, said it would build a network of user-replaceable batteries in European cities. What are the best electric scooters for adults and the best electric scooters for beginners?

    Shift in business focus

    Dott’s Matthieu Faure said the company’s operating model is effective and profitable in most cities, but it lacks scale, and that the merger with Tier would combine the resources of the two companies to increase both the number of vehicles and the scale of operations, and further enhance profitability.

    Tier’s current profitability is higher than Dott’s and the merger is expected to generate revenues in excess of €200 million.

    Sharing the benefits of scale in the industry

    As market competition intensifies, large platforms can achieve higher efficiency and lower costs by integrating resources such as vehicles, technology, user data, etc.

    This economies of scale will make the integrated company more competitive, which is why Dott and Tier companies merged. You can also check the electric bike rentals near me for your reference.

    Sharing the benefits of scale in the industry

    Shared travel initial investment is large, high operating costs, the key to enterprise development is to continue to expand the scale, only on the basis of a certain scale, can the enterprise realize the benefits of scale, and then achieve profitability. In the field of shared travel, the concept of network effect exists.

    When both the number of users and the number of vehicles increase, each new user joining will increase the value of the entire system, and vice versa.

    As scale increases, shared mobility platforms will become more attractive, attracting more users and investors, creating a positive feedback loop.

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    Chocolatezhu
    Chocolatezhu
    Hi, I'm an experienced writer about mechanic and an expert on bike and e-bike tech who appreciates practical, beautifully-engineered things. And of course, I love cycling.
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