Micromobility startups struggle to profit despite heavy funding — here’s why

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I recently attended a panel discussion on profitability featuring representatives from several rideshare providers at Micromobility Europe. Panelists were asked if their companies were profitable. 

It might surprise you to know that despite whopping masses of funding, only one out of four was generating a profit:

❌ Lime was founded in 2017 in the US and received $1.5B in funding.

❌ Dott was founded in 2018 in the Netherlands and raised $210.8M

❌  Swappable battery company Swobbee was founded in 2017 in Germany and raised $6M in a single investment from an energy company. 

✅ Tier Mobility was founded in 2018 in Germany, and has raised $646.9M in funding. 

For some perspective, European micromobility startups raised over $778m in VC funding in 2021 — an increase of over 45% on the previous year. 

Public markets have shifted. Companies were once rewarded for high growth. For example, expanding fleets and markets. But now, the focus is moving towards profitability, providing greater complexity.

What factors contribute to micromobility profitability?