Zoomo, the Australian startup with a mission to electrify delivery fleets through e-bike subscriptions, announced a $12 million interim capital raise on Monday.
The company made a name for itself through partnerships with Uber Eats and DoorDash to help delivery workers access e-bikes through weekly subscriptions at discounted rates. Zoomo then grew to offer monthly subscriptions to corporate partners in Australia, the U.S. and London for last-mile delivery, with a fleet that has expanded beyond 10,000 units globally.
Now, the startup hopes to expand its service outward toward continental Europe and other states across the U.S. It currently operates in New York City, San Francisco, Los Angeles and Philadelphia. Zoomo also wants to build up its consumer model, which mainly serves couriers but is extending to commuters, and will invest in the development of its next generation of vehicle offerings.
“We initially built our products to service the demands of gig workers in the food delivery industry,” Mina Nada, Zoomo CEO and co-founder, said in a statement. “Their expectations for quality commercial vehicles, on demand service, flexible financing and tech enabled security features spurred us to innovate. We’re now seeing enterprises and fleet managers benefiting from the platform we have built. Enterprise fleet managers looking for clean and efficient vehicles are choosing us.”
Zoomo’s focus on e-bikes for food delivery makes it unique in the electric bike rental space. Its business model offers a full-stack e-bike, from the hardware and software to same-day servicing and financing options, which especially helps big business partners deploy and manage large fleets of vehicles at scale. It’s a tall order, and Zoomo’s strategy could be leading a new trend in micromobility of being a one-stop shop that promises quick scalability.
German mobility software provider Wunder Mobility recently announced its efforts to offer a souped-up e-moped that’s been co-designed with Chinese consumer manufacturer Yadea for the dockless sharing market. It also launched a new subsidiary to finance the vehicles, along with its software, to shared micromobility providers. Wunder Mobility plans to offer e-scooters and e-bikes for financing in the future, but it doesn’t design its own vehicles or sell them outright. While the business models and target customers don’t perfectly align, the blueprint is the same: Corner a market, provide top-quality hardware and software and make it as accessible as possible.
Coronavirus spurred a demand for delivery in all industries, and we can see companies like FluidTruck and Rivian stepping up to the plate to meet the needs of eco-conscious e-commerce giants with their electric delivery vans. The online food delivery industry is no different, with a market that’s expected to reach $192.16 billion in 2025 at a compound annual growth rate of 11%. But for delivery within cities, e-bikes offer a smarter solution for meeting climate change goals while dodging traffic congestion.
Zoomo’s custom-designed bikes can bear more than 200 kilograms of load via various cargo options, according to a Zoomo spokesperson. For enterprise customers, like health food company Cornucopia, e-cargo delivery vehicles like a Trailer Trike or a Covered Trike are used to deliver goods sustainably. Gorillas, an on-demand grocery delivery company, and Just Eat Takeaway, acquirer of Grubhub and Seamless, are also clients of Zoomo’s.
“At Just Eat Takeaway.com, we want to build a sustainable future for food delivery, and are committed to doing our bit to help keep carbon emissions to a minimum, as well as providing an efficient customer experience from order to delivery,” said a Just Eat Takeaway spokesperson in a statement. “E-Vehicles are an integral part of the Scoober model and we are pleased to work in cooperation with Zoomo.”
Zoomo’s newest funding round, led by Australian VC AirTree, follows an $11 million Series A raised in August 2020, with support in both rounds from the Clean Energy Finance Corporation, Maniv Mobility and Contrarian Ventures. Withrop Square and Wisdom VC, mobility and clean tech-focused investors, also joined this round.