Electric Bike Startup Zoomo, UberEats and DoorDash Partner, Raises $12 Million

By Adriana Anastasiades Monday, May 3, 2021

An electric bike.

Electric bike startup Zoomo announced it secured $12 million in the latest business funding round led by Australian venture capital (VC) company AirTree.

Rapidly Growing Business Industry

The Australian startup built its name through business partnerships with delivery giants, including UberEats and DoorDash. These allowed their workers to rent electric bike units at discounted subscription rates.

The startup company has seen rapid business growth and struck partnerships with major corporations in Australia, the United States, and London, offering them monthly subscriptions. At the moment, the company has a fleet of 10,000 units around the world.

Zoomo plans to use the fresh funds to expand its business service in continental Europe and other states in the US. At the moment, the startup provides its business services in New York City, San Francisco, Los Angeles, and Philadelphia. It is also looking to establish its consumer model and invest in the development of next-gen vehicles.

“We initially built our products to service the demands of gig workers in the food delivery industry,” said Mina Nada, co-founder and CEO of Zoomo.

“Their expectations for quality commercial vehicles, on-demand service, flexible financing and tech-enabled security features spurred us to innovate. We’re now seeing enterprises and fleet managers benefiting from the platform we have built. Enterprise fleet managers looking for clean and efficient vehicles are choosing us.”

The startup distinguishes itself from other companies that produce electric bike units through its focus on the food delivery sector. The startup provides a full-stack electric bike, which is particularly useful for large business partners to deploy and run large fleets of vehicles at scale.

Last year, the COVID-19 pandemic prompted an increase in demand for delivery across all sectors, with companies like FluidTruck and Rivian rushing to satisfy the needs of ecommerce giants by offering their electric vehicles (EV) for delivery purposes.

Moreover, the online food delivery business sector is also growing quickly and is expected to hit $192.16 billion in market value in 2025 at a compound annual growth rate (CAGR) of 11%. And when it comes to cities, an electric bike represents a smarter and more convenient delivery alternative that avoids traffic congestion and meets climate change requirements.

Zoomo said its custom-designed electric bike is able to bear over 200 kilograms of cargo. Some of Zoomo’s major customers include health food company Cornucopia, on-demand grocery delivery company Gorillas, and Just Eat Takeaway, among others.

“We don’t just build nice bikes, we also offer a network and a [maintenance] solution. Regular mechanics can’t fix these bikes, so we give fleet managers bikes on long-term financing arrangements that are inclusive of fleet servicing. We have a full stack of hardware, software, servicing and financing,” said Nada.

Before this, the startup raised $11 million in Series A in August 2020.

Last month, Startup Savant reported that mobility startup Go Green, a parent company of Go Sharing, has raised €50 million ($60 million) in private funding.

Summary

Electric bike startup company Zoomo secured $12 million in the latest funding round led by VC AirTree. Zoomo, which has partnered up with companies like DoorDash, UberEats, and Just Eat Takeaway, will use the new capital to expand across Europe and other states in the US.

About the Author


Headshot of Adriana Anastasiades

Adriana is a journalist with a passion for reporting on business leadership and a diverse interest in multiple industries.

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