Cityscoot a French startup is raising $25.6 million (€23.6 million) from a funding round using Allianz France, Demeter along with its existing investors Banque des Territoires and Groupe RATP.
The startup is also raising a minimum of $6.5 million (€6 million) in debt in order to support its service financially.
An insight about the Service
Cityscoot is a startup that offers a free-floating electric scooter service (moped scooters). Users can locate and unlock scooters with the help of a mobile app. After using it, you can then park it and lock it again.
As of now, the service is live in Nice, Paris, Milan, and Rome. With Tuesday’s funding round, the startup is planning to widen its services to two new European cities, beginning with Barcelona in May 2020. Cityscoot is going to operate a fleet of 8,000 scooters.
From the past few months, Cityscoot has made Uber a partner so that its users can locate and unlock scooters straight from the Uber app. It seems like the integration isn’t live yet.
A convenient mode of transportation
The main competitor of Cityscoot- Coup stopped working a couple of months ago. “Even though Coup is a well-known brand in this market with a loyal customer base that regularly uses our services, operating Coup in the long term has become economically unsustainable,” the company stated at the time.
Unit economics could be one of the reasons why Cityscoot recently increased its prices. If you do not top up your account, you now have to pay €0.34 per minute in place of €0.29 per minute.
You are charged less if you buy prepaid packages offered by the service. This could be an interesting way to foster repetitive utilization.
Services like these are becoming popular day by day as it provides instant rides on the go, moreover being run by electricity, it does not harm the ecosystem and nature.
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