Micromobility operators Tier and Dott have completed a merger. The combined Tier-Dott entity will operate e-bike and e-scooter rental services in 20 countries with annual revenue of around €250m.
For the time being, the two brands will continue to function independently, but will be ‘progressively integrated’ with more details of the strategy on the way in coming weeks.
The move heralds greater consolidation in the micromobility market after Tier previously acquired Spin, as well as e-bike share firm Nextbike and Italian market leader Wind.
Bird, meanwhile – one of the US’s biggest e-scooter companies and at one point valued at $2.5bn – filed for bankruptcy late last year.
Tier-Dott’s headquarters will be in Berlin, with Tier CEO Lawrence Leuschner serving as chairman and Dott CEO Henri Moissinac as CEO.
Moissinac commented: “The closing of this transaction marks the start of an exciting new chapter for both TIER and Dott. We are focused on uniting our teams under the goal of running responsible operations for users, cities, and the environment, helping to lower car use by offering a reliable and sustainable alternative.”
The early years of micromobility were categorised by something of a land grab with a plethora of operators attempting to navigate varying regulations across many different markets.
Dott previously highlighted some of the issues stemming from this when announcing the removal of its e-bikes from London last year.
Moissinac pointed in particular to the “extremely negative feedback” it received when Camden Council struck a deal with Forest and Lime, as a change in geofencing meant Dott bikes' electric motors now cut out when crossing into the borough.
He was consequently moved to describe the capital’s e-bike rental market as “totally out of control” and has also since blamed the situation for the more recent decision to withdraw from the e-scooter market too, arguing it was not possible to run a financially sustainable service under the current conditions.
His comments echoed those of Spin CEO Ben Bear. Speaking before his firm was acquired by Tier, Bear had said it was hard to see how his firm could attain profitability in open permit markets where multiple firms were permitted to operate.
