You have undoubtedly already encountered them, in Paris and its surroundings, or in Milan and Turin. They have been part of the landscape for almost 10 years. And yet, the white and blue electric scooters from the company Cityscoot may not stay in town for much longer.
In fact, this Wednesday, November 8, the company declared insolvency with the Paris commercial court. “Looking for investors”she requested her “protection”indicates a press release produced by the company.
The cessation of payment file was filed this Wednesday, according to a company spokesperson cited by AFP. This indicates that the company cannot repay its maturing debts with its own cash. But all hope is not lost and she can still find solutions.
Deploy a new fleet
This decision comes as Cityscoot won a tender from the city of Paris at the end of July. The latter allows it to operate in the capital for five additional years, with two other competing companies.
The fact remains that, for this, the company counts “deploy gradually” in 2024 a new fleet of scooters. This is where the problem lies. These cost too much. It is a question of finding the necessary funds, as explained by the company’s management, quoted in the press release:
“This fleet renewal project, essential for the profitability of the model and to achieve the objectives of our business plan in 2025, requires additional financing.”
“In order to conduct this search for support in the best conditions, which should last several months, we are requesting the protection of the Paris commercial court.” “An expanded call for tenders will be conducted by the bodies of the procedure.”
Remember that Cityscoot has 168 employees in France, for 2,500 vehicles in the capital. It claims 250,000 active users having made 18 million journeys since its creation in 2014.
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To sum up
The company Cityscoot, a specialist in self-service electric scooters, declared itself in cessation of payments this Wednesday, November 8. The fault is the renewal of its fleet, which requires a lot of funds. All hope of finding a solution is not lost.
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