Funding International Expansion
Go Sharing, which currently owns about 5,000 electric bike units across the Netherlands, Belgium, and Austria, said it will use the raised business proceeds to expand its footprint and electric bike fleet, include electric vehicles (EV) and bicycles in its app, The mobility startup will also continue to develop its business technology.
“With the new capital injection, sustainable growth in the vehicle fleet will be continued and the service network will be expanded. Also, the company increases its focus on smart technology that is of great value to the organization and its users,” Go Sharing said in a statement.
The mobility startup company believes technology will help it reach business profitability, while it plans on using artificial intelligence (AI) algorithms to identify optimal locations for its fleet and encourage electric bike riders to drop off in those spots.
Go Sharing has secured $12 million in a previous business financing round, headed by Rabo Corporate Investments. The startup company said it plans to expand its business operations to Germany, United Kingdom (UK), and Turkey next.
An electric bike represents a quieter and much more eco-friendly alternative to fuel-powered bikes and scooters. Their maximum speed in cities is usually around 25 km/h and 40km/h in areas with less congestion.
Drivers need to obtain a license to ride an electric bike, and certain places even require helmets. Moreover, the electric bike driver will need to address insurance issues when it comes to these vehicles. Go Sharing already leases about 10,000 electric bike units in the delivery market.
Earlier this year, the US-based micro-mobility startup company Lime said it plans to include electric bikes in its fleet in certain cities. Similarly, rideshare company Uber entered into a business partnership with Cityscoot in Paris to add electric bikes to its fleet.
Operating an electric bike fleet can be expensive, which makes it tricky as a number of startup companies have closed operations due to low demand or because of poor safety measures. In spite of all those challenges, Pouwels claims that many municipalities across the Netherlands, Belgium, and Austria have voiced support for bringing in more e-mopeds as a green alternative to other vehicles.
“What we have heard from regulators is that they want to motivate people to walk or move in other ways, for example with bicycles. What we’ve seen with kick scooters is that they ‘deactivate’ people. This is why we see bikes [not adding e-scooters] as the healthy way of moving forward,” CEO of the startup business said.
He added that the idea behind adding electric vehicles to its app is to address the needs of those who need to travel longer distances.
Last week, Startup Savant reported that Vietnamese electric bike startup Dat Bike raised $2.6 million in fresh funding.
A parent business of the Dutch mobility startup Go Sharing has raised $60 million to fund its international expansion, as well as invest in its fleet and technology. The latest funding round was led by Opportunity Partners.
About the Author
Mariliana has an MSC in consumer analytics and business strategy. She has a special interest in fast-moving industries and big data.