GreenMobility is a sustainable car sharing company, operating with zero-emission and electric vehicles. Its business model is to offer on-demand and convenient mobility service in larger European cities, where its customers find, reserve and unlock the vehicles using an app on their smartphone. It operates in 6 cities across Denmark, Sweden and Belgium and planning further expansion to new cities and countries. So far, it has enjoyed impressive user traction and wants to expand its business to 15 cities by 2021. It has operated since 2016 and is listed on Nasdaq First North and plans to enter the OMX main market by 2021.
Sustainable car sharing is enjoying impressive growth, with city politicians looking for solutions to improve city environments with a reduction in CO2 emissions and fewer private vehicles on the streets. The success of GreenMobility is dependent on expanding its product offering to new cities and growing the market share. The company aspires to increase its presence to ~35 cities by 2025 with a fleet of more than 10,000 electric vehicles. In the long-run, GreenMobility wants to explore options to connect its car batteries to the power grid.
Some of the established competitors are owned by car companies such as Daimler, BMW and VW. GreenMobility’s success is depending on expanding into new cities and growing its fleet. Cities are welcoming car sharing services with electric vehicles, but limitations on fleet sizes could be set in the future. Therefore, critical mass in terms of cities and electric vehicles is crucial. Due to the growth and therefore limited earnings in the short-term, the company needs to continuously raise funding, which is a challenge and will likely lead to share dilution.
