Veo Raises $16M to Expand US Micromobility Services

Veo Secures $16 Million to Fuel U.S. Expansion

Shared micromobility provider Veo has successfully obtained $16 million in a new funding round. This capital injection will facilitate the company’s accelerated growth strategy across the United States.

Series A Funding and Strategic Focus

The Series A funding round follows recent permit approvals in key cities including Santa Monica, San Diego, and New York. Veo intends to utilize these funds to augment its vehicle fleet and strengthen collaborations with cities and local communities.

Founded in 2017, Veo pursued venture capital funding at a slightly later stage compared to many other companies in the micromobility sector.

Sustainable Business Model and Vehicle Investment

Candice Xie, co-founder and CEO of Veo, has consistently emphasized the importance of establishing a self-sustaining and profitable business model prior to seeking external investment. The company asserts that it has achieved this goal.

However, as Veo broadens its operational scope, additional financial resources are necessary for procuring the vehicles required for deployment in new markets, according to company representatives.

Prioritizing Vehicle Quality and Longevity

“Maintaining a fleet of exceptionally high-quality vehicles is paramount, as vehicle depreciation significantly impacts unit economics,” explained Edwin Tan, co-founder and president of Veo, in an interview with TechCrunch. “Our control over design and the supply chain allows us to consistently develop durable, long-lasting vehicles.”

In-House Design and Manufacturing

Veo distinguishes itself by designing and manufacturing its own electric scooters and bikes, rather than relying on external manufacturers. The company recently introduced its latest model, the Astro 4, which is projected to have a lifespan of approximately three years.

This represents an improvement over the previous vehicle generation, which had an average lifespan of two years.

Astro 4: Enhanced Features and Cost Reduction

The new features integrated into the Astro 4 are expected to substantially reduce operational expenses and enhance value for users, Tan stated. Veo claims the Astro 4 is the first shared e-scooter equipped with integrated turn signals.

Furthermore, the scooter incorporates a novel lighting system that displays a “Please pick me up” message on its underside when tipped over. This feature aims to address both public nuisance concerns and improve accessibility for individuals with disabilities by alerting them to the scooter’s presence.

Brighter headlights, deck lights, and taillights have also been added, alongside enhancements such as improved suspension and the implementation of IoT technology to further control costs.

Investment in Research and Development

“We are increasing our R&D budget,” Tan confirmed. “Our objective is to innovate and develop new technologies or products that address emerging needs and form factors. We believe the industry is still in its nascent stages and that we can pioneer new vehicle types to transform how people commute.”

Future Vehicle Development and Seasonality

Veo typically introduces a new vehicle model annually. The company is planning to unveil a new vehicle in the first quarter of 2022 specifically designed to mitigate the challenges posed by winter conditions and overcome the seasonal fluctuations in ridership.

The company has already developed a solution but is currently withholding further details.

Expanding Accessibility and Addressing User Needs

Veo is also focused on catering to individuals who may feel apprehensive or uncomfortable riding traditional stand-up scooters or bicycles. The Cosmo model, a sit-down scooter, exemplifies the company’s commitment to meeting this demand.

Veo intends to introduce additional models that are accessible to a broader range of users, aligning with requests from various cities.