Dott ditches London after withdrawing ‘financially unsustainable’ e-scooters
Dott has withdrawn its e-scooters from London, City A.M. has learned, ending its operations in the UK capital in favour of Europe.
The Dutch firm pulled its shared e-scooter service on 18 March, a decision it blames on poor regulation in the micromobility market. It is planning to reallocate the electric vehicles to other European cities after refurbishing them in Poland.
Dott confirmed jobs in London were at risk because of the move but did not say how many. It said it was “working with colleagues and partners to re-allocate” employees elsewhere in the industry.
Customers using the service with pre-paid credit on their accounts, or who have purchased passes, will be refunded.
Dott had already withdrawn its e-bikes from London in September, meaning the decision to axe e-scooters will bring its operation in the capital to a close. It claimed last year “high fees and varied regulations” between boroughs had led to an “inconsistent experience” for its e-bike riders.
The tech company had been running a seperate trial of its e-scooter operations through a contract with Transport for London (TfL). It had operated nearly 2,000 of the devices in the capital under the arrangement.
“Through close collaboration with TfL we have been able to demonstrate that e-scooters can be integrated into London in a safe and responsible way,” a spokesperson told City A.M.
“But the rapid and unregulated rise of e-bikes has left the e-scooter service unable to compete. This meant that it was not possible for us to run a financially sustainable shared e-scooter service under the current market conditions in London.”
Dott urged London authorities “to consider a single, joint tender for e-scooters and e-bikes, creating a consistent, well-integrated service which encourages more people to switch to sustainable transport.
“We would welcome discussions about re-introducing our service should the situation change in the future, with consistent regulations across the city and for e-scooters and e-bikes.”
Micromobility start-ups are facing growing financial scrutiny after California-based Bird filed for bankruptcy in December. Most of the biggest US and European players can’t seem to turn a profit and the market is highly competitive.
The transaction, which is backed by Abu Dhabi’s Mubadala Capital and Sofina, was closed on Monday and further details are expected in the coming weeks.