Zoomo Secures $12 Million in Interim Funding to Expand E-Bike Subscription Service

Zoomo, an Australian-based startup dedicated to the electrification of delivery fleets via e-bike subscriptions, has announced a $12 million interim capital raise, finalized on Monday.

Early Success and Expansion

The company initially gained prominence through strategic alliances with major players like Uber Eats and DoorDash. These partnerships facilitated access to e-bikes for delivery personnel through affordable weekly subscription plans.

Zoomo subsequently broadened its offerings to include monthly subscription services for corporate partners across Australia, the United States, and London. This expansion focused on last-mile delivery solutions, resulting in a global fleet exceeding 10,000 units.

Future Growth Plans

Currently, Zoomo operates within key U.S. cities including New York City, San Francisco, Los Angeles, and Philadelphia. The startup intends to extend its reach into continental Europe and additional states within the U.S.

Furthermore, Zoomo aims to enhance its direct-to-consumer model, which currently caters primarily to couriers but is increasingly attracting commuters. Investment will also be directed towards the development of its next-generation vehicle portfolio.

CEO Statement on Market Evolution

“Initially, our product development was driven by the requirements of gig economy workers in the food delivery sector,” stated Mina Nada, CEO and co-founder of Zoomo. “Their demand for high-quality commercial vehicles, on-demand maintenance, adaptable financing, and technologically advanced security features prompted innovation.

We are now witnessing enterprises and fleet managers benefiting from the platform we’ve created. Fleet managers seeking environmentally friendly and efficient vehicles are increasingly choosing our solutions.”

Unique Position in the E-Bike Market

Zoomo distinguishes itself within the electric bike rental landscape by providing a comprehensive e-bike solution. This includes not only the hardware and software but also same-day servicing and diverse financing options.

This full-stack approach is particularly valuable for large business partners seeking to deploy and manage extensive vehicle fleets efficiently and at scale. It represents a potentially pioneering trend in micromobility, offering a single-source solution for rapid scalability.

Comparison to Other Mobility Providers

Wunder Mobility, a German mobility software company, recently unveiled a co-designed e-moped developed in collaboration with Chinese manufacturer Yadea, targeting the dockless sharing market. They have also established a new subsidiary to finance vehicles alongside their software for shared micromobility providers.

While Wunder Mobility plans to extend financing options to e-scooters and e-bikes, they do not manufacture their own vehicles or offer direct sales. Despite differences in business models and target audiences, both companies share a common strategy: dominating a specific market segment, delivering superior hardware and software, and maximizing accessibility.

The Rise of Electric Delivery

The COVID-19 pandemic fueled a surge in demand for delivery services across various industries. Companies like FluidTruck and Rivian are responding by providing electric delivery vans to meet the needs of environmentally conscious e-commerce businesses.

The online food delivery market is projected to reach $192.16 billion by 2025, exhibiting a compound annual growth rate of 11%. However, for intra-city deliveries, e-bikes present a more sustainable solution for achieving climate goals and alleviating traffic congestion.

Zoomo’s Cargo Capacity and Client Base

According to a Zoomo representative, their custom-designed bikes can accommodate loads exceeding 200 kilograms through a range of cargo configurations. Enterprise clients, such as health food company Cornucopia, utilize e-cargo vehicles like Trailer Trikes and Covered Trikes for sustainable deliveries.

Other Zoomo clients include Gorillas, an on-demand grocery delivery service, and Just Eat Takeaway, the parent company of Grubhub and Seamless.

Just Eat Takeaway’s Commitment to Sustainability

“At Just Eat Takeaway.com, our commitment lies in fostering a sustainable future for food delivery, and we are dedicated to minimizing our carbon footprint while ensuring an efficient customer experience,” stated a Just Eat Takeaway spokesperson. “E-Vehicles are crucial to the Scoober model, and we are pleased to collaborate with Zoomo.”

Funding Details and Investors

Zoomo’s latest funding round was spearheaded by Australian VC firm AirTree. This follows an $11 million Series A raise in August 2020, with both rounds receiving support from the Clean Energy Finance Corporation, Maniv Mobility, and Contrarian Ventures.

Withrop Square and Wisdom VC, investors specializing in mobility and clean technology, also participated in this funding round.