Thursday 6 January 2022

E-bike subscription service Zoomo rides off with $60m funding

Zoomo, a provide of electric last mile delivery vehicles, has secured $60 million (£44m) in funding to expand its operations into new cities and countries and finalise development of its vehicles.

The Australian start-up raised the funds, led by VC Grok Ventures, enabling the company to remove the need for upfront, lump sum payments on bikes and instead allow consumers to pay a monthly subscription fee.

The company offers fleets of electric bikes and in some markets, mopeds, as well as fleet management software, with subscriptions including a battery charger, a lock, maintenance and customer support.

Mina Nada, Co-Founder & CEO at Zoomo said: “As countries all around the world grapple with achieving net zero carbon emissions, they are realising that electrifying cars is only part of the answer. We need more efficient and sustainable form factors - light EVs. Delivery companies are re-evaluating their fleet composition and are embracing the power of the pedal to marry cost efficiencies with environmental sustainability.

“Today's funding round underscores the tremendous potential of Zoomo e-bikes for delivery use. Zoomo is excited to bring on some world leading investors like Grok, ArcTern and Skip Capital to support our incredible growth and share in our vision to make e-bikes the default way of moving things around our cities.”

Zoomo vehicles are used by companies including UberEats, Deliveroo, Domino's, Amazon Wholefoods and Pizza Hut.

Zane Zappacosta, Domino's Franchise Owner added: “At Domino's, our delivery service is fuelled by innovation, technology and a commitment to sustainability.

“By adopting Zoomo e-bikes we are committing to a more sustainable delivery fleet, one that reduces our environmental footprint while helping to drive internal efficiencies like lowering service costs and broadening our hiring pool.”