Swedish shared micromobility leader Voi has announced its first profitable year in 2024, marking a significant turning point for the company and the shared scooter industry as a whole. With substantial revenue growth and a focus on operational efficiency, Voi is positioning itself for a potential IPO in the coming years.
A Turning Point for Shared Micromobility
The shared micromobility sector, characterized by its rapid growth and initial challenges, has seen its fair share of volatility. Companies have grappled with operational complexities, regulatory hurdles, and the inherent costs associated with managing and maintaining a fleet of vehicles. However, Voi's recent announcement signals a maturing of the industry, demonstrating that profitability is achievable with a strategic approach.
According to preliminary unaudited results shared exclusively with TechCrunch, Voi generated €132.8 million ($138 million) in net revenue in 2024. More impressively, the company achieved €17.2 million ($17.9 million) in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) profit, and approximately €100,000 ($104,000) in adjusted earnings before interest and taxes (EBIT).
While the EBIT figure might appear modest, Voi's Founder and CEO, Frederik Hjelm, emphasized the significance of this achievement. He highlighted the company's remarkable progress in improving its bottom line by 100 percentage points since 2021, particularly within a "tough industry with lots of ups and downs." This turnaround underscores Voi's commitment to sustainable growth and operational excellence.
Following in Lime's Footsteps
Voi's profitability announcement comes on the heels of similar news from Lime, another prominent player in the shared micromobility space. Lime reported full-year profitability in 2023, further validating the viability of the business model. These successes suggest a broader trend toward financial stability within the industry.
Hjelm expressed confidence in Voi's trajectory, stating that the company's "real cash positive financials and EBIT profitability" position it as a "good candidate for the public markets in, say, two to three years from now." This forward-looking perspective underscores Voi's ambition and its belief in the long-term potential of shared micromobility.
Focus on EBIT and Operational Efficiency
Hjelm emphasized the importance of focusing on EBIT profitability, particularly for businesses with significant physical assets. He argued that EBIT provides a more accurate reflection of the operational cost structure compared to EBITDA. This focus on core profitability metrics demonstrates Voi's commitment to sustainable financial health.
Voi's improved financial performance can be attributed to a combination of cost-cutting measures and efficiency improvements. The company has implemented automation on the product side and leveraged machine learning models for predictive maintenance and battery swapping schedules. These initiatives have not only reduced operational costs but also extended the lifespan of Voi's fleet to approximately eight years, a "big driver of profitability improvements," according to Hjelm.
A Thousand Small Things
Hjelm attributed Voi's success to a meticulous focus on detail and a culture of continuous improvement. He described it as "a thousand small things that distill down to one thing, which is really a focus on discipline and obsession with small details." This emphasis on operational excellence has enabled Voi to optimize its processes and achieve significant cost savings.
Healthy Utilization and Market Maturation
Voi's vehicles are experiencing healthy utilization rates, averaging up to 10 rides per day during peak months and two rides per day during off-peak periods. This strong demand underscores the growing adoption of shared micromobility as a convenient and sustainable transportation option.
Hjelm also pointed to the maturing of city regulations as a positive factor contributing to Voi's success. He noted that cities have become more selective in choosing micromobility operators, leading to improved public acceptance and enhanced profitability for established players like Voi.
Strong Financial Position and Future Expansion
Voi concluded 2024 with €60 million ($62 million) in cash and cash equivalents. In October 2024, the company secured €125 million in senior secured bonds ($130 million), primarily backed by Nordic and American institutional investors. This substantial investment reflects confidence in Voi's business model and its future prospects.
Hjelm highlighted the significance of securing funding through public bonds, stating that it "is proof of trust from the very sophisticated public debt bond investors." This access to capital will enable Voi to further expand its fleet and enter new markets across Europe. The company currently operates approximately 100,000 vehicles, 90% of which are scooters. Hjelm indicated plans to significantly increase the bike fleet in the coming months.
Strategic Acquisitions on the Horizon?
With a strong financial position, Voi is well-positioned to explore strategic acquisitions. While Hjelm confirmed that there is no confirmed acquisition offer for Bolt's micromobility business, he expressed interest in a potential deal "at the right price," emphasizing Voi's expertise in the field.
The Future of Shared Micromobility
Voi's achievement of profitability marks a crucial milestone for the company and the shared micromobility industry. It demonstrates the viability of the business model and paves the way for future growth and innovation. With a strong focus on operational efficiency, technological advancements, and strategic expansion, Voi is poised to play a leading role in shaping the future of urban transportation. The potential IPO in the coming years will further solidify Voi's position as a key player in the evolving landscape of sustainable mobility. The success of companies like Voi and Lime suggests that shared micromobility is not just a passing trend, but a growing and integral part of urban transportation ecosystems. As cities continue to prioritize sustainable and efficient transportation solutions, shared scooters and bikes are likely to play an increasingly important role in meeting the needs of urban commuters and promoting a greener future. Voi's journey from a startup to a profitable enterprise serves as an inspiration for other companies in the space and underscores the transformative potential of shared micromobility.
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