Cityscoot, a self-service electric scooter service, has ceased payment since November 8, 2023, according to a declaration made to the Paris Commercial Court. The future of the company is seriously threatened.
Thunderbolt on the market for self-service electric scooters. The company Cityscoot, which operates a fleet of 2,500 vehicles in Paris, its inner suburbs, Nice, Bordeaux, Milan and Turin, has officially ceased payment since November 8, 2023, according to a file filed with the Paris Commercial Court, learns -we by BFM and theAFP.
Founded in 2014 before a launch in 2016 within the City of Lights, this service had nevertheless won the call for tenders from the Paris town hall in July 2023, authorizing it to operate its fleet of electric scooters alongside Yego and Cooltra for the next five years. However, reality quickly caught up with him, given his visibly fragile finances.
Looking for money
A cessation of payment does not necessarily condemn Cityscoot. This procedure constitutes the step preceding a judicial recovery or liquidation, explains BFM. Until then, the 168 French employees continue to receive their salaries. This is why, in its press release, the company explains that it wants “seek protection from the Paris Commercial Court“.
To get by, Cityscoot will need money. The group is currently “looking for investors to deploy its new fleet of electric scooters», he explains
And to continue: “This fleet renewal project, essential for thehe profitability of the model and to achieve the objectives of our 2025 business plan, requires additional financing».
A race against time
This little coup is all the more regrettable since Cityscoot’s turnover was +5% ahead in September compared to forecasts, we learn in the press release that the editorial staff was able to consult. In recent months, a major overhaul of the organization has been implemented, notably with new management arriving in April.
A real sword of Damocles now hangs over the brand, which is entering a race against time to find investors as quickly as possible and move forward. Otherwise, its future seems doomed.