Australian e-bike subscription start-up Zoomo has been forced to lay off more employees only seven months after announcing a cut to its global workforce of 16%.
In a statement on Tuesday Zoomo said it was reducing “its overall headcount by 8%” which will primarily affect employees in its corporate head office “as we bring central overheads in line with regional profit.”
Zoomo, which was founded in 2017 as an e-bike and e-scooter subscription service aimed at the grocery and delivery sector, has recently had a number of ups and downs.
In late 2021 the company secured a $80 million capital raise led by Atlassian founder Mike Cannon-Brookes’ Grok Ventures and secured a further $20 million in funding in early 2022.
However, demand for the company’s e-bikes have fluctuated dramatically over the past couple of years, exacerbated by supply chain constraints that have affected industry the world over. Despite this, revenue has continued to increase.
In November, Zoomo announced a reduction to its global workforce of 16% “to safety steer Zoomo through the challenging economic climate we currently face.”
According to Mina Nada, Zoomo co-founder and CEO, “A year ago, we could not keep up with demand, supply chain was snarled, and capital was abundant.
“We made decisions in line with our environment. Fast forward to today, and we’re witnessing an increasingly challenging macro-economic environment with increased risks of softened demand and tighter capital. That requires an adjustment in our strategy and cost-base.”
Zoomo, which is operating in 16 cities across Australia, North America, and Europe, generates the majority of its revenue from outside of Australia, which seems to be one of several factors behind this latest round of job cuts.
Zoomo also recently secured a further $24 million in funding “from existing investors”, according to the company statement provided to journalists. The new funding is designed “to support continued investments in core technologies while charting our path to profitability.
“The capital injection in the current venture capital environment underscores the strength of Zoomo’s underlying business model and our differentiated customer proposition.
“Zoomo has an exciting opportunity to capture the massive market potential of micromobility,” the company added.
“Micromobility offers the best value and environmental impact for urban fleets. We continue to support a diverse set of global partners in the provision of hardware, software and servicing solutions, transitioning ever greater portions of fleets to the new form factors.”
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.
