Tier Acquires Nextbike: Expanding into E-Bike Market

Tier Mobility Acquires Nextbike in Major Micromobility Deal

Berlin-based Tier Mobility, a leading European e-scooter operator, has completed the acquisition of German bike-sharing service Nextbike. This strategic move demonstrates Tier’s dedication to a multi-modal transportation approach, mirroring the strategies adopted by competitors such as Lime and Voi to capitalize on established market positions.

The acquisition represents the latest significant consolidation within the rapidly evolving micromobility sector, potentially foreshadowing further mergers and acquisitions in the future.

Recent Industry Consolidation

In the previous year, Lime integrated Uber’s micromobility division, Jump, incorporating its entire fleet of e-bikes and e-scooters following Uber’s $170 million investment. Furthermore, Lime recently secured $523 million in funding, suggesting this may be its final fundraising round prior to a planned initial public offering.

Financial Details and Funding

The financial terms of the Tier and Nextbike agreement were not publicly disclosed. However, the acquisition was facilitated by Tier’s recent $200 million Series D funding round, led by Softbank Vision Fund 2.

This Series D investment is intended to support Tier’s global expansion of its multi-modal services and to enable strategic investments, including acquisitions. Prior to this, Tier secured $60 million in debt financing this summer and a $250 million Series C round last November, also backed by Softbank.

Expansion of Tier’s Fleet and Reach

Tier has been increasingly focused on e-bikes in recent months, launching services in cities like London and Stockholm as part of a broader expansion plan encompassing six countries.

Through this deal, Tier will gain control of Nextbike’s fleet of approximately 115,000 bicycles, including both traditional and electric models. Additionally, Tier will expand its operational footprint into the 28 countries where Nextbike currently operates.

Challenges Inherited with the Acquisition

Nextbike recently faced operational disruptions in Cardiff and the Vale of Glanmorgan in Wales, due to widespread theft and vandalism resulting in over half of their bikes being stolen or damaged.

The company is currently working to repair and replace the vandalized bicycles, and the future of the scheme in the area remains uncertain. Responsibility for addressing these issues will now fall to Tier.

Combined Fleet and Future Outlook

Currently operating in over 160 cities across 16 countries in Europe and the Middle East, Tier did not previously have a presence in Wales.

The combined entity will boast a fleet exceeding 250,000 vehicles across more than 400 cities. This diverse fleet will encompass bicycles, e-bikes, cargo bikes, e-scooters, and e-mopeds, utilizing free-floating, station-based, and hybrid sharing systems.

Statement from Tier’s CEO

“The acquisition of Nextbike – with its unrivalled experience and relationships across hundreds of cities – is a unique opportunity to take bikeshare to the next level, getting more people out of cars and offering the most sustainable mobility solution,” stated Lawrence Leuschner, CEO and co-founder of Tier.

He further added, “Our shared values of sustainability and respect for cities across two strong leadership teams, underpinned by Tier’s financial backing and capital efficiency, present an unstoppable, joint mission to change mobility for good.”