E-scooters: Tier and Dott to merge as operators struggle for profit
E-scooter and e-bike giants Tier and Dott are set for a merger, it has been announced, in a deal which would form the biggest micromobility operator on the continent.
The transaction, which is still subject to several conditions, is expected to go ahead within the next two months and will involve €60m equity injection from the firms’ existing shareholders, led by the Abu-Dhabi state-backed investor Mubadala Capital and the Belgian investment firm Sofia.
Under the arrangement, the new joint entity would continue to operate with the now well-known names Tier and Dott, who are two of the biggest players in Europe’s micromobility market.
It comes amid increasing financial scrutiny of the micromobility market, which is made up of a string of start-ups, many of which are struggling to turn a profit.
Berlin-based Tier announced plans to cut nearly a quarter of its workforce in November and has undergone several rounds of layoffs over the last few years.
Bird, the e-scooter rental pioneer, who is well known for becoming the fastest startup to secure a fabled “unicorn” valuation, filed for bankruptcy last month.
However, the market is still growing and demand for e-vehicles is on the rise. Tier and Dott generated combined revenues of €250m, supporting over 125m trips per year in more than 20 countries.
Lawrence Leuschner, co-founder and chief executive of TIER, said: “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.”
“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. With an expanded footprint and combined expertise, I look forward to providing a record number of rides in 2024.”
Henri Moissinac, co-founder and chief executive of Dott, also noted that the firm is “very optimistic about the future of shared micromobility”.
The chief executive of Dott added: “We have built a service that users love, operated in a responsible way. By bringing TIER and Dott together, we are well-positioned to capture the next phase of growth and further accelerate our path to profitability. We are creating the European champion that will provide the best experience to our users, carefully integrated into the cities we operate in.”