Shared scooter rental company Go Sharing is withdrawing from a large part of the cities where the company had green electric scooters for hire. At the moment, customers can still visit 45 municipalities for 24 euro cents per minute, but that will only be thirteen later this year. The company mainly focuses on larger cities such as Amsterdam, Eindhoven, Rotterdam and Groningen.
Go Sharing says it feels forced to withdraw because the rental of scooters is not profitable enough in the smaller towns and large villages. In recent months, consumption has stagnated here, says a spokesperson. He cannot say whether the decline in use in smaller cities has to do with the deteriorating economic climate. Because use is lagging behind, it is not possible for Go Sharing to have service teams drive around to maintain the scooters.
In some places, there is only a ‘hibernation’. This is especially true for the coastal towns. “We see that usage there is fine in the summer months, but declines sharply in winter.” For the other places – including Apeldoorn, Assen, Enschede and Hilversum – it is still being investigated how people can return here in the future.
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Worse investment climate
Go Sharing, which was founded three years ago, admits that the more difficult investment climate also played a role in the decision to withdraw. Startup companies such as Go have been able to bring in investments relatively easily in recent years thanks to the broad financing markets and low interest rates, without having to make a profit yet. Now that interest rates are rising, financiers are asking for a view of yield on loans. For that reason, players such as Deliveroo and Gorrilas have already given up the Netherlands as a market in the food delivery market.
go has had Rabobank as an investor since 2020in 2021 there came Opportunity Partners for 50 million euros. According to the Go spokesman, the decision to withdraw from 45 places has been taken in “close” consultation with them. “They believe in the strategy, but also see the challenges in the current financing environment, where a focus on profitability over growth is the best way forward.”
Go Sharing recognizes that the investment climate plays a role in the withdrawal
Go now says it will focus on ‘quality’ in the major cities where it remains active. The calculation system for always having a scooter nearby – customers are willing to walk about four minutes to the scooter – must be perfected and the scooters must become more vandal-proof and more comfortable, according to the spokesman.
Go Sharing denies that the withdrawal has to do with the many complaints about the loaner scooters. These often turn out to be defective and would be parked too haphazardly by users, to the annoyance of local residents and municipalities. According to the spokesman, the nuisance is certainly not that bad in the large cities if you compare it with the number of kilometers driven.
No more scooters in Utrecht
Recently, the municipality of Utrecht decided not to renew the permit for scooter rental in the city. That license was in the hands of Go competitor Tier. According to the municipality, the scooter had little added value compared to the shared bicycle, because the average number of kilometers traveled (3.7 kilometres) was the same. „[We geven] in our city we prefer active means of transport (such as walking and cycling)”, declared the municipality.
According to Go, it was not surprising that the number of kilometers driven in Utrecht was low. “The municipality had determined that the scooters and shared bicycles had to be parked in fixed places,” explains the spokesperson. “All those places were relatively close to the center. Driving the scooter to Maarssen, De Bilt or Zeist was then not possible. In the cities where we operate, we see that people use an electric scooter for those journeys.” With its green scooters, Go Sharing wants to be a more sustainable and cheaper alternative to the car for those trips. “You have to be able to travel door-to-door.”
Municipalities and residents complain about defective and lying scooters
In Utrecht, the permit for the electric cargo bike has been extended. It is owned by Cargoroo, who work with yellow cargo bikes from Urban Arrow. In any case, they are only active in large cities because maintenance can then be carried out cost-effectively, says head of communication Ton Damen.
The company does not see any decline in use at this time. Users take the cargo bike for the transport of children and rides to the hardware store or furniture boulevard, the company says. “We are slowly growing. We are also a less luxurious product than the scooter, and almost three quarters of our users indicate that they take our cargo bike to replace a ride with the car.”
Cargoroo also sees more focus among investors on a shorter payback period on the investment. „But because our cargo bikes are relatively expensive [tussen 4.500 en 6.000 euro, red]we have always been extensively involved in the payback model.”