The Rise of On-Demand Electric Mopeds

The availability of electric mopeds – the seated, motorized scooters – has become a noticeable component of urban transportation options. A Netherlands-based startup is now announcing a new round of funding, aiming to broaden the appeal of e-mopeds and diversify its vehicle offerings.

GO Sharing's Expansion Plans

GO Sharing, currently operating a fleet of approximately 5,000 e-mopeds across 30 cities in The Netherlands, Belgium, and Austria, has secured €50 million (roughly $60 million). The company, located near Utrecht, intends to utilize these funds to extend its e-moped network.

Furthermore, GO Sharing plans to integrate electric cars and e-bikes into its application, and to continue developing the underlying technology that powers its services.

Leveraging Technology for Profitability

GO Sharing posits that technological innovation will be key to achieving a profitable business model. AI algorithms will be employed to optimize e-moped placement, incentivize drop-offs in strategic locations through discounts, and maintain optimal battery charge levels.

Geographic Expansion

The company has identified Germany, the U.K., and Turkey as its next target markets for expansion.

Investment Details

This funding round is spearheaded by Opportunity Partners, an Amsterdam-based firm also invested in online supermarket Crisp. The startup’s founders – CEO Raymon Pouwels, Doeke Boersma, and Donny van den Oever – also participated in the investment. A prior funding round of around $12 million was provided by Rabo Corporate Investments, the venture capital division of a major banking institution.

E-Mopeds: A Unique Niche in Urban Mobility

In the current landscape of urban transportation – encompassing taxis, public transit, bicycles (both traditional and electric), scooters, walking, carpools, car rentals, and personal vehicles – e-mopeds occupy a distinctive position.

They generally offer a higher speed than bikes and scooters – typically limited to 25 km/h in cities and 40 km/h in less populated areas – while remaining more maneuverable than cars. They operate silently, unlike their gasoline-powered counterparts, and provide a significantly more environmentally friendly transportation solution.

For fleet operators, e-mopeds tend to require less maintenance and fewer replacements compared to alternatives like e-bikes and e-scooters.

Challenges and Regulatory Hurdles

However, adopting e-mopeds also presents certain challenges. Riders are required to possess a valid driver’s license, and helmet use is mandated in some locations. Operators must navigate insurance requirements and obtain necessary permits to operate as vehicle providers.

Improper parking can also lead to public nuisance concerns, similar to those associated with bikes and kick scooters.

Market Volatility

The combination of these challenges, alongside the potential for high operating costs and insufficient user adoption, has resulted in a fluctuating e-moped market. Several startups have ceased operations, withdrawn from cities due to low demand, or temporarily retreated to address safety concerns before returning.

Growing Interest from Larger Players

Despite these hurdles, the potential of e-mopeds has attracted attention from larger transportation companies seeking to offer a comprehensive range of mobility options. Lime has begun incorporating e-mopeds into its fleet in select cities, and Uber has partnered with Cityscoot in Paris to integrate e-mopeds into its app.

Cityscoot itself has secured funding and maintains an active presence in numerous European cities.

Regulatory Support and Future Strategy

GO Sharing’s CEO, Raymon Pouwels, notes that municipalities are often receptive to the introduction of e-mopeds as an eco-friendly alternative to other vehicles. This is particularly appealing to individuals who are not interested in kick-scooters or bicycles but might otherwise opt for personal cars, as they already possess the necessary licenses.

The company’s commitment to sustainability is also shaping its broader strategic direction.

Prioritizing Sustainable Mobility

“Regulators are keen on encouraging walking and alternative modes of transport, such as bicycles,” Pouwels explained. “We’ve observed that kick scooters can discourage physical activity. Therefore, we view bicycles as a healthier option for the future.” The addition of electric cars to the fleet is intended to cater to longer-distance travel needs.

Supply Chain and Fleet Management

GO Sharing’s supply chain is managed through GreenMo, a sister company led by Boersma. GreenMo procures and operates a rental service of e-mopeds utilized by delivery drivers, currently managing a fleet of approximately 10,000 vehicles. Recent acquisitions, including Dutch startup e-bike to go and a majority stake in Belgian company zZoomer, are aimed at expanding GreenMo’s fleet capacity.