Micromobility.com and EVmo have signed a letter of intent to merge.
The planned merger will bring together micromobility.com’s micromobility solutions and vehicle rentals and EVmo’s vehicle rentals to gig economy drivers and delivery companies, the companies said in a Wednesday (June 7) press release.
The proposed merger, which is subject to several conditions, would involve a stock-for-stock exchange and EVmo merging with a newly formed subsidiary of micromobility.com, according to the releases.
“This merger presents significant synergy opportunities, providing us with a robust platform for organic expansion both in North America and on a global scale,” micromobility.com CEO and founder Salvatore Palella said in the press release.
The merger will accelerate micromobility.com’s transition from a sharing business to a B2B enterprise that will offer long-term vehicle rentals and add a taxi hub platform, Palella said.
The firm’s businesses currently include Helbiz, a provider of micromobility solutions; Wheels, which offers vehicle rentals; and an eCommerce site that offers eScooters, eBikes and accessories.
The proposed merger comes after EVmo received a notification of default from its lender that has constrained its operating liquidity, EVmo CEO Stephen Sanchez said in a press release.
The company views the merger as “a strong path forward,” Sanchez said.
“The combined company will be in a strong position in the rapidly growing rideshare and mobility industry,” Sanchez said in the release.
Renting vehicles to gig economy drivers is a total addressable market (TAM) estimated at between 300,000 and 500,000 vehicles, Sanchez said in May 2022.
EVmo meets this demand by enabling drivers to rent vehicles that are insured, maintained, available at a fair price, and enable them to work and earn, Sanchez said.
“We are somewhat buffered against some of those economic headwinds in the fact that people still need to care for their families, and we give them the means by which to do that,” Sanchez said.
The announcement of the planned merger comes about two months after micromobility.com said it is expanding its ghost kitchen business, Helbiz Kitchen, to New York City after previous launches in Milan, Italy; Austin; and Los Angeles.
The company said it intends to tap the customer base for its long-term vehicle rental firm Wheels to drive adoption of the new business.
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