Joyride Raises $3.7M Seed Round for Micromobility Software

Joyride Secures $3.7 Million to Empower Local Micromobility Operators

Joyride, a Toronto-based firm specializing in white label apps, back-end analytics, and multimodal fleet management for shared micromobility ventures, has successfully raised $3.7 million in seed funding. This capital injection is intended to facilitate expansion and support a larger network of smaller, locally-focused operators.

Global Reach and Expanding Services

Currently operating in over 160 markets across all continents excluding Antarctica, Joyride has largely sustained its operations through generated revenue since its inception in 2014. The newly acquired funds will be strategically allocated to enhance the company’s capacity to assist local operators in sourcing and financing appropriate vehicles.

Access to insurance programs through trusted partners and guidance on deploying profitable fleets will also be prioritized. While these services have been offered to some extent alongside Joyride’s existing SaaS model, the company plans to emphasize them more prominently as it scales.

The Rise of Local Micromobility Entrepreneurs

“During the early stages of the pandemic, we observed major companies like Bird and Lime withdrawing from numerous markets,” explained Vince Cifani, Joyride’s founder and CEO, in an interview with TechCrunch. “Almost immediately, we began receiving inquiries from local entrepreneurs in those cities, recognizing an opportunity to establish their own micromobility businesses.”

Since the previous year, Joyride has experienced a four-fold increase in interest from individuals seeking to launch small scooter and e-bike sharing businesses, compared to pre-pandemic levels. This translates to approximately 150 requests each week.

A Shift Towards Localized Operations

Joyride’s data indicates a growing trend of local operators emerging in areas potentially considered too small for larger, national companies. The micromobility industry has witnessed consolidation through acquisitions, such as Lime’s purchase of Jump and Boosted, and Bird’s acquisition of Circ and Scoot.

However, Cifani notes that consolidation hasn’t occurred among the numerous smaller businesses operating locally. These businesses, while individually modest, collectively represent a significant force, establishing a presence in towns, cities, hotels, and university campuses globally.

In certain instances, such as The Hague in the Netherlands, fleets are even being managed by public transit authorities.

Competition and Opportunities

The proliferation of local operators presents a growing opportunity for companies like Joyride. Similarly, Wunder Mobility, a comparable software provider in Germany, recently launched a lending division to aid micromobility startups in financing their fleets.

“We’ve identified over 10,000 potential markets for these types of local operators,” Cifani stated. “Considering that Bird has invested approximately $500 million to enter over 100 markets, is it realistic for them to raise $100 billion to cover every possible market opportunity worldwide?”

He believes there’s a substantial opportunity within this “long tail” market, a space Bird has also attempted to enter with its fleet manager model.

Joyride’s Distinct Approach

Bird’s fleet manager model, which accounted for 94% of the company’s “sharing” revenue in the latter half of 2020, involves providing vehicles and software to local operators while retaining ownership and branding of the scooters.

Fleet managers are responsible for deployment, rebalancing, sanitization, and maintenance, receiving a portion of user rental fees in return. Joyride differentiates itself by assisting customers in purchasing fleets directly from manufacturing partners and, in some cases, facilitating vehicle financing.

Profitability and Future Plans

While larger players like Bird and Lime have focused on scaling to achieve profitability, Cifani reports that many of Joyride’s operators running smaller businesses have recouped their vehicle costs within a few months.

Joyride’s seed round was spearheaded by Proeza Ventures, Urban Innovation Fund, and Craig Miller, the former CPO of Shopify. The company anticipates launching a Series A funding round in the near future.