Tier and Dott have merged into a single micromobility service, Dott, to enhance operational efficiency and scale in an industry with narrow margins. Users will transition to a unified app and fleet by March 2025, with ongoing efforts to encourage frequent usage. Following their merger announcement, the companies raised €60 million, positioning themselves well for future growth.
Tier and Dott, prominent providers in the European micromobility landscape, have officially merged to operate under a unified service brand known as Dott. This merger, which was first announced in January 2024, aims to enhance operational scales rather than create a conglomerate of services, thereby improving the financial viability of bicycle and scooter sharing amidst narrow profit margins. The chief executive officer of Dott, Henri Moissinac, emphasized the desire for a cohesive operation, stating, “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.” To facilitate this integration, Dott will transition Tier’s users to a single app and an aligned fleet of vehicles on a city-by-city basis, with completion of this process expected by March 2025. In cities where Tier had previously operated, users will need to download the new Dott application if they have not updated their Tier app. Existing Tier scooters and bikes will simply be rebranded under Dott while their operational functionality remains unchanged. Challenges in merging operations include aligning two different fleets and standardizing practices. Henri Moissinac noted, “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.” With the newly united fleet, Dott services will reach 427 cities spanning Europe and the Middle East, featuring approximately 250,000 electric bikes and scooters. The previous year saw both companies serve over 10 million unique riders who collectively completed 100 million rides, averaging 10 rides per user. Dott’s focus on local community engagement aims to foster frequent usage, as emphasized by Moissinac: “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.” In addition, Dott has been working on strategies to increase the number of rides, with promotional passes to encourage recurring patronage. For example, riders can purchase a €4.99 pass in Paris for reduced ride costs over the course of a month. Upon announcing the merger, Dott and Tier successfully raised €60 million (approximately $67 million), with Moissinac indicating that the company is sufficiently funded for current operations and is open to future investment opportunities to enhance growth.
The merger between Tier and Dott is a significant development in the European micromobility sector, which includes e-scooters and bike-sharing services. The micromobility industry is characterized by thin profit margins and growing competition, particularly against established players like Lime. This merger reflects a strategic consolidation aimed at achieving greater operational efficiency and scaling services to better serve users across various cities. Both Tier and Dott have shared a history of providing localized transportation solutions, and their union demonstrates a commitment to enhancing user experience while navigating the operational complexities inherent in merging distinct service platforms.
The merger of Tier and Dott into a single operational entity signifies a pivotal moment in the European micromobility sector, aimed at leveraging improved scale to enhance operational efficiency and rider experience. With plans for seamless integration into a single app and service model set for completion by early 2025, the companies are positioned to strengthen their market presence while focusing on community engagement and frequent usage metrics. The operational challenges posed by the merger will be addressed with careful attention to harmonizing practices and branding, ultimately contributing to the unified mission of providing reliable and accessible transportation solutions in urban environments.
Original Source: techcrunch.com
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