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GreenMobility Consolidates and Expects Profits in 2024

Thursday, February 9, 2023

Changing markets, increased interest rates, and a shifting market has led car-sharing company GreenMobilty to focus on its core markets in order to reach profitability.

GreenMobility, the electric car-sharing company from Denmark, has been growing rapidly since its beginning in 2016. Today the company has 200k customers across many European cities. Their intention had been to have 10k vehicles in 35 cities by 2025, but now they have pushed that back to 2030.

As with many parts of the market the carsharing market has been hit by recent fluctuations in markets. As a response the company has needed to shift focus to their core markets, that is, the countries where sustainable carsharing is most profitable. The markets they will shutter are Germany and Sweden.

The company sees clear signs of high demand in major metropolitan areas, especially those that have implemented policies that require green transport solutions. “Driven by global megatrends, GreenMobility sees a rapidly growing market for carsharing in large cities that demand green transport for their citizens and aim to reduce the number of private cars.”

Personal Comment:

Carsharing is certainly one puzzle piece in the overall puzzle of a transport sector that is sustainable. Whether it is picking up a new sofa from Ikea, or going on a short daytrip to the beach, some trips are still best done by car. GreenMobility, and other carsharing options, mean customers can achieve this without owning a private vehicle, which means overall less resources needed to produce vehicles, more efficient use of the shared vehicle, and when those shared vehicles are electric, far fewer emissions.

For this piece of the puzzle to achieve long-term impact it must be profitable. Though it is unfortunate that GreenMobility needs to pull out of Germany and Sweden it is positive that they predict overall profitability in 2024. The article does not specify why Germany and Sweden are less profitable. It does point out that city centres that have policies pushing for reduced emissions and fewer private vehicles are their best markets. It may be that Sweden and Germany, both of which have large private vehicle industries, are not quite as willing to implement policies that restrict private vehicle ownership.

Written by Joshua Bronson,
RISE Mobility & Systems