Profitability Micromobility news
January 9, 2022Predictions
As with the early dot com booms. Micromobililty firms including Lime and Bird are seriously struggling to make a profit after some massive fund raising efforts.
Reporting in the FT this week. Bird loosing $37m on a turn over of $65m in the last quarter. Pure growth comes at a cost. Though their SPAC share price has taken a tanking. Shares have since fallen by more than a third from floating in the second half of last year.
We think that the early stages of Amazon, airbnb and other online giants had not too dissimilar growth. IT tooks years of growth to find profitablity.
With Lime raising almost $500m still claiming to be profitable on an adjusted EBITDA basis in the last quarter. $418m in the last quarter of convertible debt from investors. With $105m in a senior debt facility. Raised mostly from the Abu dabi investment fund, Fidelity Management & Research Company, Uber and certain funds managed by Highbridge Capital Management.
Back in 2020 Uber led a $170m investment into Lime. Including moving it's bike fleet into Lime.
All is looking stressful for the large micromobility firms as more cities start to make it easier to operate in.
The UK is due to start to legalise E scooters. While the wind of change is with the large micromobility firms as they become part of the net 0 efforts of cities.
The big US providers will have to contend with local more nibble competition in Europe and the UK who can tackle the supply chain and operations that take to running complicated fleets of Ebikes and Escooters.
Like Bird and tier here in Europe