VOI the e-scooter sharing startup raises funds for European expansion

The company with the newly acquired funds will expand in Germany, Italy, Norway and France.

Sweden’s electric scooter sharing startup, VOI Technology has recently raised $30 million in its new fundraising round which it plans to use for expanding its reach across Europe and for conducting research to fend off growing competition.

Reportedly, several high-profile investors like, Uber Technologies Inc., Alphabet and more anticipate that scooter-sharing will rapidly rise in Europe thanks to lower levels of car ownerships when compared to that in the U.S. and large commuter populations.

Incidentally, domestic startups such as Dott and Tier, and U.S. rivals Lime and Bird have already put many scooters on the European roads and have raised thousands of dollars in 2018 to expand further into the crowded marketplace.

However, VOI Technologies, backed by investors such as venture capital firm Balderton Capital and BlaBlaCar Co-Founder & CEO, Nicolas Brusson, believes it can beat rivals by establishing closer relationships with city authorities.

According to The Economic Times, Fredrik Hjelm, CEO, VOI Technologies, said that asking permission from authorities before entering new towns and cities, unlike some of its competitors, will allow the company to offer a viable alternative to cars. He said that the move will also help commuters to combine their e-scooter journeys with existing public transit network.

Reliable sources claim that VOI users can locate nearby scooters via maps or its app and then ride it by paying €1 (S$1.54) as an unlocking fee followed by riding costs of €0.15/minute. Furthermore, the company claims it would use the new funds to expand in Germany, Italy, Norway and France.

However, critics warn that operators could face several issues encountered by bike sharing firms, which includes being forced into competitive price wars and facing criticism from authorities over rules and vandalism, which has forced bike operators like Mobike and GoBee to retreat from Europe.