E-scooter company Dott temporarily disappears from the market
In January, e-scooter service provider Tier will transition into Dott. According to a survey, the recognition of Dott is more prominent, states Tier CEO Philipp Haas. Post-merger, users might notice alterations.
The vibrant blue e-scooters provided by Tier will soon undergo a makeover, swapping their current color scheme for the uniform Dott design. This transition occurred in January, as announced by both companies following their merger. The Tier app will also cease operation.
To continue using the vehicles, users will need to switch to the Dott platform. The newly introduced app boasts an increased range of choices, enhancing the affordability and ease of use for clients, as per Tier. In a survey, Tier discovered that Dott holds a stronger brand recognition across all 21 countries it operates in. In Germany, however, Tier remains more recognizable.
Haas, the CEO for Germany, Austria, and Switzerland markets, clarified: "In Germany, the focus is not on branding or recognition." Instead, users care most about the consistent availability of vehicles. The transition is set to commence in Germany mid-October and will be completed within a few weeks. Dott and Tier joined forces in January. Dott is predominant in the Benelux countries and France, while Tier mainly operated in the German-speaking region. Their offerings extend beyond e-scooters, also providing e-bikes.
The heated e-scooter market
After a period of rapid growth in the market following its approval in 2019, companies are now focusing on cost reduction and profitability. Haas anticipates further consolidation within the sector. "We anticipate additional mergers, but we will not be participating in them," he added.
Since the merger, neither Dott nor Tier have made significant job cuts, Haas confirmed. In 2022, Tier announced a strategic shift towards greater profitability, resulting in almost 200 employee reductions. Dott plans to achieve a Pre-Interest, Taxes, and Depreciation (EBITDA) profit this year.
Following the merger, users will need to switch to the Dott platform to continue using the e-scooters. This transition, which includes a change in color scheme, was prompted by the stronger brand recognition of Dott, as revealed in a survey.
In the heated e-scooter market, Haas anticipates further consolidation, but Tier and Dott have not announced plans for any additional mergers.
(This block of text contains the sentences: "Users will need to switch to the Dott platform" and "Haas anticipates further consolidation")
