GreenMobility is a flexible (“free float”) city-car rental company. Its business model is to lease Renault Zoe cars, which are fitted with tailored software that allows users to open and rent cars using their mobile phones. GreenMobility operates in Denmark and Norway and is expanding its product offering to Belgium, Sweden and the UK with a combination of its own operations and franchises. So far, it has enjoyed impressive user traction and wants to expand its franchise model to 15 cities by 2021. GreenMobility has operated since 2016 and is listed on Nasdaq First North.
The underlying market is healthy and projected to remain strong. Environmentally-friendly flexible car rental is enjoying impressive growth, and users have already began to replace their personal vehicles. The success of GreenMobility is dependent on scaling its product offering to new geographical destinations. The company has high ambitions to reach ~450,000 customers with a full potential of 1.4m and increase its presence to ~15 cities in total by 2021. In the long-run, GreenMobility wants to explore options to connect its car batteries to the power grid, which looks attractive.
The established car companies Daimler, BMW and Fiat own the three largest competitors. In addition, VW recently announced plans to enter the market. The underlying market is growing, but if GreenMobility’s franchise model does not create the traction desired, the company will not be able to expand organically without large capital injections.