On January 10, 2024, Tier and Dott, two leading European micromobility companies, announced that they plan to merge in early March 2024. The companies offer rental services for e-bikes and e-scooters in major cities, a market which has seen rapid growth in recent years. As part of their proposed merger, Tier and Dott will be raising an additional €60 million for the combined business.
However, the merger announcement follows a wave of seemingly backwards events in the sector. For example, before announcing their merger, Tier laid off 22% of its workforce, while Bird, North America’s largest micromobility operator, delisted from the NYSE in September 2023 and announced that it had filed for Chapter 11 bankruptcy in the United States in December 2023.
Despite this, micromobility companies are finding areas to grow in Canada. Changes to legislation in Ontario in 2023 have allowed for micromobility pilot programs to emerge. Bird Canada partners exclusively with cities such as Hamilton, while other cities like Ottawa allow multiple companies to offer shared fleets.
The merger of Tier and Dott represents a broader shift in the micromobility sector. The success or failure of Tier and Dott’s efforts at increasing profitability will influence the direction in which micromobility companies outside of Europe will move to create a sustainable sector.