An Uncertain Outcome for the French Pioneer of Shared Electric Mobility
Cityscoot, the French leader in electric scooter-sharing, revealed on Wednesday, November 8, 2023, that it had filed for bankruptcy with the Paris Commercial Court. This announcement is the latest development in a series of financial challenges the company has faced, casting doubt on its future. Cityscoot, known for being a pioneer in the shared electric scooter space, is now in payment default, a step that could lead to a possible judicial restructuring.
A Constant Struggle for Survival Despite a Recent Victory
Cityscoot manages a fleet of 2,500 electric scooters in the Paris area. Despite its financial challenges, it has managed to maintain operations by winning a tender initiated by the City of Paris this summer. As a result, it has managed to keep its spot in the cityscape alongside Yego and Cooltra, its two main competitors.
The Strategy: Renewing the Fleet to Reduce Costs
While the service continues to operate normally for customers, Cityscoot is working on finding investors to renew its entire fleet. Despite the high cost, this initiative, according to Cityscoot, could then reduce its operating costs by 70%. This could enable the company to lay a solid foundation to continue fighting in an increasingly competitive sector.
