Tier and Dott have merged into a single micromobility service called Dott, streamlining operations and technology under one roof. The transition to a unified app and fleet is set to take place city by city by March 2025. The merger aims to compete more effectively against market leader Lime while focusing on local user engagement through promotional initiatives. Dott’s fleet now encompasses 427 cities with 250,000 vehicles, having served over 10 million riders in the past year.
Dott has emerged as the single brand following the merger of prominent European micromobility companies Tier and Dott. This integration, which was anticipated as far back as January 2024, seeks to streamline operations rather than create a conglomerate. Leaders in the micromobility sector face the challenge of slim profit margins, making scalability crucial to enhance unit economics and expand their vehicle offerings in order to more effectively compete with the dominant player, Lime. “When we merged the two companies, we wanted to operate as one company, one technology stack, one set of operating practices everywhere; just one company, not two companies,” stated Dott’s CEO, Henri Moissinac. To facilitate a seamless user experience, Tier’s operations will be consolidated into a singular app and vehicle fleet, transitioning users from Tier’s platform to Dott’s on a city-by-city basis by March 2025. Should users reside in cities where Tier previously operated, they will need to download the new app. Subsequently, Tier’s electric bikes and scooters will be rebranded with Dott stickers, similar to changes already observed in cities with both services. The challenge of merging the two fleets on a unified technology platform has been considerable, as noted by Moissinac: “What has been a big challenge was to bring the two fleets together on one technology stack, rebuild our standard operating practices … what we’ve seen is that some things were very well done here, some things were well done there, and we are trying to bring the two together.” Currently, Dott’s fleet operates across 427 cities in Europe and the Middle East, with the companies competing in only 17 locations prior to the merger. This initiative represents an extensive network of approximately 250,000 electric bikes and scooters. Over the preceding year, Dott and Tier collectively attracted over 10 million unique riders who completed around 100 million trips, averaging 10 trips per rider, although this figure varies significantly among users. “Our strategy is very much around locals. We are a local service for the locals with frequent riders. The most important metric for me is the number of rides per active rider per month,” articulated Moissinac. Enhancing customer retention is pivotal in Dott’s growth strategy, as evidenced by the upward trend in ride numbers outpacing revenue increments. Dott has been actively promoting user passes to encourage repeat usage. A specific example includes a pass available in Paris, priced at €4.99, which reduces the ride cost to a flat rate of €1.75 per trip over the subsequent 30 days. Upon announcing the merger, Dott and Tier secured €60 million (approximately $67 million). Following this announcement, Moissinac expressed confidence in their financial standing: “We’re fine with cash. We don’t need more cash, but we have opportunities we could unlock if we invest a bit more cash. I don’t know if we do it now or later … Typically, in the winter, it’s a good time to think about your strategy for the next year.”
The micromobility industry, characterized by electric scooter and bike-sharing services, has been growing substantially across Europe. Companies in this sector often operate under razor-thin profit margins, thus necessitating consolidation to improve efficiencies and enhance financial sustainability. The merger between Tier and Dott aims to capitalize on these dynamics by combining resources and technology to better position themselves against leading competitors. By forming a stronger, unified brand, Dott seeks to redefine the customer experience while capturing a greater share of the market through increased scalability and optimized operations.
The merger of Tier and Dott marks a significant milestone in the European micromobility landscape, aiming to create a cohesive brand that prioritizes operational efficiency and improved user experience. By consolidating services under the Dott name and actively promoting local usage through competitive pricing, the merged entity is strategically positioned to maximize its market presence in a challenging industry. As the transition progresses, the emphasis on increasing rides per active rider signals a customer-centric approach that may lead to sustained growth and customer loyalty in the future.
Original Source: techcrunch.com
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