Micromobility's long and winding path to profitability

The past year has been a rollercoaster for the micromobility industry. Whilst some companies like Voi, have shown significant signs of progress towards profitability, others have faced significant challenges. 

Many players have filed for bankruptcy, others have consolidated and merged as they've battled through many regulatory and operational challenges over the years. 

Despite all this, there can in fact be a clear path forward for those who adapt and innovate, and Voi's recent financial report demonstrates this. They've significantly reduced losses, increased revenue, and achieved operational cash flow positivity despite the headwinds they've faced, including a decline in valuation and stricter regulations in key cities. They've kept things going when others have thrown in the towel, sadly admitting defeat. 

When I think about eScooters, I think of easy, clean and cost effective mobility. Active mobility that connects people and places, meaning less cars on our roads. However, I also think of the vandalised, scattered hardware that lay sprawled on the curbside as well as the safety risks brought on through improper use and a rule breaking minority that ruin it for the rest of us. 

Gone are the days of unfettered growth. Cities are now prioritising responsible integration of micromobility solutions and for operators, the pathway to profitability not least, their existence lies in collaboration. Collaboration with operators working hand in hand with municipalities to ensure safe, sustainable, and equitable access to e-scooters and e-bikes.

This road to profitability won't be a straight line that's for sure but Voi's progress, alongside the evolving landscape, showcases the industry's potential to unlock a future filled with sustainable, convenient urban transportation. With a new Labour Government, in the UK at least, I'm hoping Louise Haigh, our newly appointed Secretary of State for Transport will have a positive influence on the Department for Transport's decision on whether to integrate eScooters into the public transport mix. Time will tell!

At Hyperion Executive Search, for the past 10 years, we've worked closely with disruptive mobility start-ups to hire exceptional talent throughout Europe. If you are scaling your business, please get in touch and together we can create a brighter, more sustainable future less reliant on fossil fuels.