A merger between two of Europe’s largest micro-mobility startups, TIER and Dott, is expected to be finalized before March and will yield Europe’s largest e-scooter rental company.
The strategic consolidation is buoyed by a fresh €60 million investment from venture capitalists. According to a company statement, investors include Mubadala Capital, Sofina, Estari, M&G, Prosus Ventures, Novator and White Star Capital, with Mubadala Capital and Sofina leading the round.
Headquartered in Berlin, TIER currently operates in over 400 cities across 21 countries in Europe and the Middle East. It was founded in 2018 by partners Lawrence Leuschner, Matthias Laug and Julian Blessin.
Meanwhile, Dott is headquartered in Amsterdam and operates over 40,000 e-scooters and 10,000 e-bikes across the largest cities in Belgium, France, Israel, Italy, Poland, Spain, and the United Kingdom.
The new venture will boast combined revenue of €250 million, the companies say, and will help facilitate over 125 million trips annually across more than 20 countries.
“I am delighted to join forces with Dott, further strengthening our position as the European micro-mobility champion and marking the next phase in the development of the industry,” said Lawrence Leuschner, co-founder and CEO of TIER.
Furthermore, the companies have said their merger is not just to enhance profitability, but also te hellp drive the continent’s ongoing transition to sustainable transportation.
“We are united by a shared vision of cities with more sustainable transport options and fewer cars, and we are committed to helping users and cities make this a reality,” said Leuschner. “With an expanded footprint and combined expertise, I look forward to providing a record number of rides in 2024.”
Henri Moissinac, co-founder and CEO of Dott, added, “We are very optimistic about the future of shared micro-mobility.”
The merger, however, comes at a volatile time for the e-scooter industry. Superpedestrian, which operates in the US and Europe, reportedly shut down its US operations in December, according to TechCrunch. And Bird, the largest e-scooter company in the US, recently filed for bankruptcy.
In Europe, the e-scooter sharing market is projected to grow, however. According to Statista, revenue in the e-scooter-sharing market is projected to reach $818 million in 2024 and a projected market volume of $1.17 billion by 2028.
However, it is worth mentioning that the rapid proliferation of e-scooters in European cities has also raised concerns about safety and regulation. According to Forbes, cities are grappling with the challenges of integrating new modes of transport into their urban landscapes, with consideration for speed limits, parking regulations, and safety measures.
“Cities are adapting to reduce car dependency, and encouraging people to make sustainable transport choices,” added Moissinac. “We have built a service that users love, operated in a responsible way. We are creating the European champion that will provide the best experience to our users, carefully integrated into the cities we operate in.”