
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.
Author: Noa Rapaport
Image by https://unsplash.com/@howardbouchevereau
Authors
Expertise
Insights
-
Technology
PolicyMe Raises C$30 million to Revolutionize Digital Insurance
PolicyMe, a Canadian digital insurance provider, recently announced the successful close of C$30 million in new funding, building off of its C$3.3 million Seed Round (2020) and C$18 million Series A… -
Energy
Supreme Court of Canada Interprets the Telecommunications Act
In Telus Communications Inc. v. Federation of Canadian Municipalities, the Supreme Court of Canada considered the correct interpretation of the term “transmission line”, as used in sections 43 and… -
Technology
Twelve Labs Develops Enhanced Search Capabilities in Video AI
In the fast-evolving field of artificial intelligence, a new frontier is emerging: video understanding. Jae Lee, co-founder of Twelve Labs, believes that AI models adept at interpreting videos as well… -
Technology
LED Me Be: The Busy Bar Tells Your Coworkers You’re Tied Up
Have you ever been in an online meeting with your headphones on, and wished that your coworkers could read your mind and stop coming to your desk with questions? The team at Flipper Devices know this… -
Technology
Lights, Camera, Cycle: Garmin’s New Headlight Records While You Bike
Garmin is levelling up its biking equipment with Varia Vue, a headlight equipped with a front-facing, video-recording camera. The technology is similar to the “dash cam” feature for vehicles. While… -
Technology
Nanoprecise Sci Corp closes US$38 million Series C Round
Nanoprecise Sci Corp. (“Nanoprecise”), an Edmonton-based leader in AI-driven predictive maintenance, recently secured a US$38 million Series C equity and debt funding round. The round was led by…