Bolt Mobility Expands to 48 New Markets | Last Mile Acquisition

Bolt Mobility, a micromobility company based in Miami and co-founded by Olympic gold medalist Usain Bolt, is broadening its reach into 48 additional markets following the purchase of assets from Last Mile Holdings.

The contrasting trajectories of Bolt Mobility and Last Mile Holdings highlight the challenges faced by micromobility businesses over the past year, as the COVID-19 pandemic significantly altered business strategies that were, in certain instances, already vulnerable.

Both Bolt Mobility and Last Mile experienced negative impacts from the COVID-19 pandemic. Bolt Mobility, for example, temporarily suspended operations in several cities in early 2020 because of the pandemic. The company then recovered by refining its business approach, establishing partnerships with local operators, welcoming Ed Welburn, former VP of Global Design at GM, as an advisor, and introducing a redesigned scooter featuring dual brakes, 10-inch wheels, LED lights, interchangeable batteries offering a 25-mile range, and NanoSeptic surfaces on the handlebars and brake levers to eliminate germs and bacteria from frequently touched areas.

Last Mile Holdings, however, did not experience the same level of recovery.

If the name Last Mile Holdings is unfamiliar, the brands it previously controlled may be recognizable. Last Mile functioned as a parent company, owning both OjO Electric scooters and Gotcha Mobility, which encompassed a range of electric trikes, scooters, and bicycles. The company completed the acquisition of Gotcha in March 2020 for $12 million in cash and stock.

While Bolt Mobility’s user base reached 300,000 in 2020, Last Mile encountered difficulties. Last Mile Holdings, publicly traded on the Toronto Stock Exchange as MILE, ultimately sold its U.S. assets through an auction process. Bolt Mobility acquired substantially all of these assets with a credit bid of $3 million, as stated in a year-end filing.

These assets encompass 8,500 new vehicles, including e-scooters, e-bikes, traditional bicycles, and sit-down cruisers, along with operating licenses for 48 new markets, with over 30 being exclusive agreements, according to Bolt CEO Ignacio Tzoumas. The 48 new markets also include 18 university campuses.

“This acquisition signifies a substantial expansion for Bolt across all areas,” stated Tzoumas, adding that the company has also brought on Matt Tolan, formerly Chief Operating Officer of Gotcha, who will now serve as Bolt’s chief commercial officer, along with approximately 20 team members previously with Gotcha’s technology and operations divisions.

Users in Bolt’s expanded markets will continue to access and utilize the e-scooters, e-bikes, and pedal bikes through the existing Gotcha Mobility and Ojo Electric iOS and Android mobile applications. Bolt is collaborating with cities and universities to transition these markets to its own platform. This acquisition also introduces e-bikes to the Bolt platform, complementing the company’s existing development of its own e-bike line planned for release later this year.

Image Credits: Bolt Mobility

Bolt attributes its resilience and success in 2020 to its revised business model. Rather than directly managing the complex and costly tasks of fleet management and operations, Bolt opted to collaborate with local businesses. These partners are responsible for operating Bolt’s fleets within each specific market. This adaptable strategy also enabled a partnership model in certain areas where Bolt leased scooters to delivery personnel, restaurants, and other small enterprises, according to the company. 

By July, Bolt and its partners were active in five newly established or re-launched markets. Bolt also maintains a list of agreements with partners for an additional 20 markets, which the acquisition is expected to support, the company reports. 

Tzoumas confirmed that Bolt completed the transaction without incurring any new debt and “under conditions that will enable us to continue dedicating our resources to growing and enhancing our services in all the markets we serve.” The acquisition was partially financed by Fuel Venture Capital, a current Bolt investor.  Bolt also receives backing from Sofreh Capital and The Yucaipa Companies.

“We established Bolt because we are confident in micromobility’s potential to revolutionize how people live and travel within their communities,” Usain Bolt stated. “This expansion demonstrates that anything is achievable in micromobility with a skilled team, innovative technology, and the unwavering dedication of the Bolt team.”