- European electric scooter startup Tier turned a profit in Q3, according to financial documents seen by Business Insider.
- Tier is comparatively small and only operates within Europe, but its numbers indicate that scooternomics may not be as unprofitable as critics feared.
- “We have made long-term structural changes and wanted to ensure we could be profitable through winter periods of low demand, but also Covid,” Tier CFO Alex Gayer commented.
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European scooter rental startup Tier is currently profitable, according to internal documents shown to Business Insider.
The startup’s revenue is in the tens rather than hundreds of millions of euros. But with billions of dollars ploughed into scooter startups, Tier’s leadership bills its shift to profit as vindication of careful, managed growth.
A bonus is that the company has achieved positive financial results despite the pandemic stymieing the expected summer boom in rides.
“We have made long-term structural changes and wanted to ensure we could be profitable through winter periods of low demand, but also COVID,” Tier’s chief financial officer Alex Gayer said.
According to the documents shown to Business Insider, Tier has been EBITDA-positive for the third quarter of 2020 and anticipates this continuing into the next quarter. The figures show EBITDA growth in the single-digit millions of euros, on higher revenue in the double-digit millions of euros. The company suffered losses during the first half of the year.
Like other scooter companies, Tier allows users to rent its electric scooters through an app. It competes with both well-funded US firms such as Bird and Lime, as well as smaller local rivals such as Wind and Voi.
Users can use Tier’s app to locate and unlock an available scooter nearby. How much you pay per ride depends on the city.