The commercial court of Paris has approved Cooltra’s proposal to acquire Cityscoot, which offers shared electric mopeds that users can unlock and ride. This acquisition comes after Cityscoot had previously been placed under court-ordered receivership.”
The European market for micromobility startups, including scooter, bike-sharing, and electric moped companies, was thriving in the context of near 0% interest rates. However, rising interest rates have caused difficulties for these startups in securing fund rounds and debt facilities, leading to a wave of bankruptcies and mergers.
Cityscoot, a major micromobility service in Paris, will cease operations due to its acquisition by Cooltra. Cityscoot had introduced the concept of shared electric mopeds in Paris, but faced challenges as new competitors entered the market.
Cityscoot had raised significant funding, expanded to other cities, and successfully secured a license in a competitive tender process. However, the company failed to secure a new funding round and filed for insolvency, leading to the acquisition by Cooltra.
Cooltra’s Acquisition Strategy
Cooltra’s offer focuses on acquiring Cityscoot’s assets, including its user base. Cooltra plans to retain 30 of Cityscoot’s employees and spend a significant amount to finance the merger. Cityscoot users will be integrated into Cooltra’s app, with the service transition facilitated through new branding.
Amidst other micromobility companies facing challenges, the market environment remains harsh, and Cityscoot’s acquisition by Cooltra may not be the last bankruptcy filing in the space.
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