Bolt Mobility, the Miami-based micromobility startup co-founded by Olympic gold medalist Usain Bolt, is expanding into 48 new markets after acquiring the businesses of Last Mile Holdings.
The rise of Bolt Mobility and the demise of Last Mile capture the uncertainty that has plagued micromobility companies over the past year when the COVID-19 pandemic has turned business models that, in some cases, were already on the ground unstable.
Bolt Mobility and Last Mile have both been adversely affected by the COVID-19 pandemic. Bolt Mobility, for example, had to close in several markets in early 2020 due to the pandemic. The company rebounded after changing its business model and starting to partner with local operators, added former GM global design VP Ed Welburn as a consultant, and made a new scooter equipped with dual brakes, 10-inch wheels, LED lights, replaceable batteries with 25 miles of range and NanoSeptic surfaces on the handlebars and brake levers designed to eliminate germs and bacteria from these common points of contact.
Last Mile Holdings didn't fare as well.
If Last Mile Holdings doesn't sound familiar, the brands it once owned might. Last Mile was a holding company that owned the OjO electric scooters and Gotcha Mobility, which had a portfolio of electric trikes, scooters and bicycles. The company acquired Gotcha in a $ 12 million cash and stock deal that ended in March 2020.
As Bolt Mobility grew, with its customer base reaching 300,000 users in 2020, Last Mile hit headwinds. Last Mile Holdings, listed on the Toronto Stock Exchange under MILE, ended up selling its US assets in an auction. Bolt Mobility acquired substantially all of the company's assets for a $ 3 million credit offer, according to a year-end statement.
These assets include 8,500 new devices, including electric scooters, electric bicycles, pedal bicycles and seated cruisers, and licenses to operate in 48 new markets, most of which (more than 30) are exclusive contracts, according to Bolt CEO Ignacio Tzouma. . The 48 new markets include 18 university campuses.
"The acquisition represents a significant expansion for Bolt on all fronts," said Tzoumas, adding that the company has involved former Gotcha Chief Operating Officer Matt Tolan, who will now serve as Bolt's chief commercial officer. as well as around 20 team members who were formerly a part of Gotcha's technical and operational teams.
Bikers in Bolt's new markets will continue to be able to access and use e-scooters, e-bikes and pedal bikes through the Gotcha Mobility and Ojo Electric iOS and Android mobile apps. Bolt is working with cities and universities to transfer these markets to the Bolt platform. The acquisition adds e-bikes to the Bolt platform for the first time. However, the company was already developing its own line of e-bikes which it plans to launch later this year.
Bolt recognizes its new business model for helping it survive and even thrive in 2020. Instead of continuing to handle the complex and costly task of fleet management and operations, Bolt decided to partner with local companies. These partners operate Bolt's fleets in the field in every single market. This customizable approach enabled a business partnership model in select markets where Bolt leased scooters to delivery workers, restaurants and other small businesses, the company said.
In July, Bolt and its partners were operating in five new or relaunched markets. Bolt also has a backlog of partner deals for 20 other markets that the acquisition is poised to fulfill, according to the company.
Tzoumas said Bolt was able to carry out the deal without taking on any additional debt and "on terms that will allow us to continue to dedicate our resources to expanding and improving our services in all markets where we operate ". The acquisition was funded in part by Fuel Venture Capital, an existing Bolt investor. Bolt is also supported by Sofreh Capital and The Yucaipa Companies.
"We founded Bolt because we believe in micromobility as a movement that can transform the way people live and move within their communities," Usain Bolt said in a statement. "This expansion demonstrates that anything is possible for micromobility when supported with talented people, innovative technology and the incredible work ethic of the Bolt team."
