Market continues to consolidate
E-scooter provider Tier merges with competitor
January 10, 2024, 6:58 p.m
The e-scooter industry is under pressure from tough competition and tightening regulations. The Berlin startup Tier is now taking over its competitor Dott. Founder Lawrence Leuschner is withdrawing from operational business following the merger.
The Berlin e-scooter provider Tier is merging with the Dutch-French competitor Dott. Both companies have reached a preliminary agreement on the merger, they said in a joint statement. The new joint venture will continue to operate under the Tier and Dott brands.
Due to the legal processes, it will take a few more weeks until the takeover of Dott is completed. According to the information, completion is targeted for mid to late February. With the takeover, the e-scooter market in Europe continues to consolidate. The industry is under pressure due to tough competition and tightening regulations in some European cities.
As early as 2022, Tier felt the effects of the tough competitive environment for e-scooters and the changed financing conditions for startups and had to make significant savings. The company cut 180 jobs and gave up its e-mopeds business, which had previously also been part of its portfolio. Dott withdrew from the German market a few years ago and operates primarily in France, Belgium, Spain, Italy and Great Britain. Tier, in turn, says it operates in around 21 countries, including Germany, the Scandinavian countries and Eastern Europe. The two markets overlap primarily in France and southern Europe.
Tier co-founder and boss Lawrence Leuschner is withdrawing from operational business with the merger and moving to the supervisory board of the new joint venture, which will be based in Berlin. The new boss will be Henri Moissinac, who previously ran the Dott company. Tier said there will be no job cuts for the time being as a result of the takeover.