02 May 2024
by Christopher Carey
German bikeshare firm nextbike has announced it will re-establish itself as an “independent” entity, after two years as part of micromobility operator Tier.
The company is being sold to private equity firm Star Capital Partnership for an undisclosed amount, with the “distinct business and operating models” of both operators cited as a reason for the sale.
Speaking to Cities Today, nextbike’s Chief Business Officer Simon Stephan said that while the businesses had similarities, there was also a risk of “cannibalisation”.
“[Being part of Tier] created not only some opportunities within the group, but also some limitations for nextbike. Tier is at a different stage in the lifecycle of a company. It’s a classic rather young startup with venture capital finance. It’s loss making, whereas nextbike is in a more mature stage of business model development.
“We’re 20 years old, profitable, and that’s why we also are now choosing a different type of investor with private equity, that has a different way of managing investments compared to a venture capital investor, which of course also affects how we can run and develop our business.”
What will change?
nextbike currently operates in over 300 cities worldwide – mostly in Europe.
Stephan added that the company will now focus entirely on a business-to-government (B2G) model “without the need to consider potential synergies and dependencies towards the business-to-customer (B2C) model of Tier”.
“So cities and public transport associations will be our key partners again, and we can further develop a mobility offering that’s fully integrated into public transport, in order to enhance its attractiveness for citizens, as opposed to maximising rental revenue.”
The company will continue to operate in its current markets, and will look to expand within Europe with a focus on the Benelux and Nordic regions as well as Eastern Europe.
In a statement Tier (which recently merged with Dott) echoed nextbike’s comments on how the companies’ differing business models were key to the sale, saying: “these two models have distinct tender requirements and product needs [and] operate better separately than together, each company will have greater success in building the best service for their customers independent from one another”.
Image: Tier