Zoomo e-bike subscription service raises $ 60 million Series B to stop last mile delivery – TechCrunch

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Zoomo, the Australian startup that builds e-bikes and offers micromobility subscriptions to gig workers and couriers, it wants to be the next disruptive electric vehicle company. The startup just announced a $ 60 million Series B fundraiser, money it aims to use to transform how businesses view last-mile delivery.

“See you really in destroying Rivian,” Mina Nada, CEO and co-founder of Zoomo, told TechCrunch. Rivian is an electric vehicle startup that is building an electric SUV and a electric pickup truck – He has gone publishes last week with an implied valuation of $ 90 billion. “We think it makes no sense that 90% of US two-kilogram burger deliveries are in 2-ton vehicles. And we really think this will radically change to become Zoomo vehicles in the future. “

Half of Zoomo’s $ 60 million funding comes from shares led by Grok Ventures, Skip Capital and ArcTern Ventures and supported by AirTree Ventures, Clean Energy Finance Corporation, Contrarian Ventures and Maniv Mobility. The capital, Nada says, will be invested directly in the platform, including software and a support network.

The other half comes from the debt secured by Viola Group assets, which the startup will use to expand its hardware into existing and new markets. The company already operates in Australia, the UK and the US and has recently expanded to new cities in those markets, such as Manchester, UK and Chicago, Illinois, as well as Valencia in Spain, Paris in France and Stuttgart in Germany. The debt will allow Zoomo to pay a monthly subscription on its bikes rather than paying a large lump sum upfront.

Many of Zoomo’s existing customers have asked the company to expand after failing to find others to meet their needs in those markets, Nada says, so more cities are on the horizon for startup.

Zoomo’s business is divided into B2B and B2C elements. The startup offers fleets of electric bicycles (and in some markets, mopeds), as well as fleet management software, to corporate clients such as Domino. It also deals directly with couriers, often through partnerships with gig worker platforms like DoorDash, who want a flexible and durable work vehicle at an affordable price. Zoomo offers gig workers a weekly subscription, which includes maintenance, for between $ 20 per week and $ 49 per week.

“People are realizing that we cannot achieve zero emissions by continuing to electrify vehicles, and the right form factor sizing is a win for everyone,” said Nada. “It’s more efficient, there are faster food deliveries with less congestion. Couriers can earn more because they can do more deliveries per hour and customers are happier because deliveries arrive faster. We really see micromobility disrupting the traditional four-wheeled space and are heavily focused right now on the fact that no micromobility company is doing a great job for the logistics space, although there are some interesting companies that do a good job in the consumer space. . “

Zoomo says its vehicles are built for couriers who have to drive eight hours a day, complete with large batteries that can carry a worker during the night’s grind in the rain.

“Safety is a really important feature to them, as is durability,” said Nada, whose pedigree includes Deliveroo, Bolt Bikes, Bain and Mobike. “We have customers who travel 50,000 kilometers a year on a bicycle, so the requirements for delivery are really very different from the consumer space.”

Companies like URB-E in the United States e Velove in Sweden they are also looking to tackle last-mile delivery space, but are more focused on container deliveries that can accommodate mid-mile food deliveries as well, which is where Zoomo specializes for now. That said, with this round of funding, Zoomo wants to begin developing light vehicles to address package delivery and other urban last-mile form factors.

“Basically, what this money allows us to do is build the product muscle in our team to better research the needs of our customers,” said Nada. “We are building the product team to now be able to do customer research to ensure we replicate our success in new areas.”

Direct-to-consumer deliveries are increasingly happening from micro-fulfillment centers as more purchases are made online. The best way to have faster delivery is to have those fulfillment centers closer to the customer and make deliveries on smaller form factors, like e-bikes, Nada says. But different customers will have different requirements that may require different form factors down the line.

“What we are building is a company that will be able to offer those different form factors to different types of customers in addition to our software, support and financing platform,” said Nada.

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