VOI raises $85 million – a step forward in the micro-mobility profitability
Micro mobility has made it big in the last few years. The tiny electric bike-shares and scooter shares have made it their way all around the world. Some of the startups like Bird, Lime, VOI have already achieved the unicorn status all thanks to the massive funding rounds.
How did Micro mobility become a trend?
Horace Dediu is a well-recognized industry analyst who minted the term micro-mobility. He came up with this term by getting inspiration from micro-computers. The micro-mobility is like a humility business model. It is much more powerful and clever. In the last 20 years, the stories we’ve had in technology were low-end disruptions that allowed you to do things more affordable, more conveniently, faster and more. These approaches were for innovations in creating new things rather than trying to create better things. The same approach goes with transportation.
The S- curve adoption matters very much. When a technology hits the market it first starts slowly then gets to the peak and comes back down. The timing matters and one cannot afford to miss the window.
There is an explosion expected in the field of business model innovation in automotive when three forces converge — autonomy, electric, and sharing. Out of the three micro-mobility is the real disruption. The notion of minimum mobility that delivers the utility that a customer needs with a minimal impact as possible. It is the most right time to invest in the micro-mobility business.
Concept of American Micro-mobility
There is no need to have big vehicles to travel short miles. In other words, we can have small vehicles for small distances. And since half of the trips in the US are below 12 miles, the micro-mobility can prove the best choice for the users. Not only the e-scooters are pocket-friendly, but also they help in saving the environment.
The whole concept of micro-mobility was a motor of the size of the fist should be able to carry a person. With this concept, the bikes and scooters were electrified and the American style of micro-mobility vehicles- the electric scooters were ready to hit the market. Slowly, they took over the whole of the US, Europe, Asia, and Australia too.
VOI raised $85 million in a funding round
A Swedish electric scooter sharing start-up having its headquarters in Stockholm – VOI technology has raised $85 million from investors. The micro-mobility company is hoping that these funds will help it reach profitability in the next few years.
The micro-mobility startup has already seen seasonable profitability in a few cities. The CEO and co-founder Fredrik Hjelm declared that they are expecting to be profitable on a company basis by the year 2021-2022.
The company’s funding round came as a backdrop of rising wariness among investors about high-flying, high-spending startups that do not have a clear plan for how they’re going to earn profits. Voi is going to use the freshly raised capital to ramp up work on its e-scooters to make them more durable and extend their lifespan. They are also going to fund software development to understand the parking places for the users.
Micro-mobility attracting cash and customers
Since 2015, stakeholders have been investing more than $5.7 billion in micro-mobility start-ups. They have targeted more than 85 percent situated in China. The market has till now attracted a huge customer base and more than two to three-time popular than ride-hailing services. Numerous micro-mobility start-ups have been valued at more than $1 billion in just a short span.
Micro-mobility is not just making people happy but it gives them the freedom to travel in the fresh air and avoid traffic jams. It is easy and liberating to move conveniently through traffic. It also makes people feel rejuvenated and makes it a great traveling experience for them.
How big is the micro-mobility market?
Theoretically speaking, micro-mobility encompasses all passenger trips of less than 5 miles which is around 50 to 60 percent of today’s passengers in China, the European Union, and the United States.
But we are only utilizing 8 to 15 percent of this market. There is still a huge scope and opportunity in the micro-mobility market. It all depends on sustainability, customer adoption, weather conditions, age fit, etc.
Modeling a base-case market
The modeled baseline of shared micro-mobility by Mckinsey.com forecasted a market potential of $200 billion to $300 billion in the United States, $100 billion to $150 billion in Europe, and $30 billion to $50 billion in China by the year 2030.
This represents a healthy growth in the market. But how can you grow the shared micro-mobility market into a trillion-dollar business? People should be made aware of the micro-mobility and its advantages. Cities need to install intermodal hubs to make the transport convenient. And the startups need to be careful regarding the laws established in various cities.
How to reach your customers?
We have just the right answer for you. Starting a business needs a lot of money. You cannot afford to spend too much capital on each process. With our next-generation Micro-mobility solution -Rohak, you can have your scooter rental business kick-started immediately.
Rohak is powered with IoT technology and has the latest tech stack compatible with the devices your customers are using. Our research team can help you with the market research and the features that you can introduce in the app. Our excellent team of developers can help you with the functioning of the e-scooter app and make it go live for you on the App Store and Play Store within 45 days.
If you are interested in the Powerful Rohak and want to know more about how it works, do not hesitate to connect with us. We can take you to the next level in Micro-mobility.