What the business is
Shared e-scooters and e-bikes in 20-plus countries, mostly European cities, rented through the Tier and Dott apps.
The bet
That combining two European scooter networks gives enough scale for thin-margin micromobility to turn a profit.
Starting capital
Another €60M from Mubadala Capital, Sofina and others; Dott had raised €210M
How it started
Dott chose to internalize operations and focus only on free-floating micromobility, with an in-house software stack; Tier expanded to more markets, bought Coup and Nextbike, and had earlier claimed a user-swappable battery network.
What happened
After years of big funding rounds, VC money dried up. Tier laid off 22%, about 180 staff, and sold Spin to Bird for $19M before Bird filed for bankruptcy at the end of December.
How it ended up
On 10 January 2024 the two announced a merger due to close within two months; Dott's Henri Moissinac would be CEO, Tier's Lawrence Leuschner chairman and Tier's Alex Gayer CFO.
What has to be true
Venture funding had dried up, so shared scooter companies had to prove they could make money rather than grow.
Margins in micromobility are razor-thin, so scale is the lever for profitability.
Dott's operating model was profitable in most cities but small, while Tier had more revenue and market reach; combining them aimed at both.
What can be applied
In a thin-margin, capital-hungry business, the survivor strategy can be to merge operating discipline with revenue scale instead of racing rivals on funding.
Aftermath
As of 10 January 2024 both apps stayed live on the App Store and Google Play in 20-plus countries, and details of how the merged company would operate were still to be worked out. Terms were undisclosed; TechCrunch said the combined valuation was likely lower than at the 2021 and 2022 funding peaks. Dott's Matthieu Faure said valuations had reached very high levels and had adjusted.
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