Last Mile Holdings, formally OjO Electric, announced it has officially merged with Gotcha Mobility (a DIG SOUTH sponsor), making it one of the largest micro-mobility companies in the United States.
Last Mile Holdings will acquire Gotcha’s portfolio of exclusive long-term contracts featuring 35 universities and 42 municipalities. Throughout 2020, the adjoined companies plan to launch 16,000 mobility products in 80 additional markets. OjO’s custom-engineered seated scooter will join Gotcha’s portfolio of electric vehicles making it the 4th mobility product, alongside its e-bike, e-scooter, and e-trike. As the micro-mobility industry continues to change, the company plans to further develop its portfolio of electric vehicles to meet the needs of its partners and riders.
Effective today, the new parent company will begin trading under MILE on the Toronto Stock Exchange. Gotcha’s goal for 2020 is to remain laser focused on positive unit economics by ensuring each of its markets are profitable and its products are meeting and exceeding targeted utilization goals.
Currently, Gotcha designed a universal swappable battery for its bikes and scooters. Swappable batteries will allow the fleet team to change both bike and scooter batteries at hubs in market, reducing operational costs by less trips to the warehouse to charge. This model allows Gotcha to be even more sustainable and efficient, making the system more profitable.
Operational excellence is key to improving economics. Gotcha plans to develop partnerships with companies that will provide innovative technology like self-driving scooters and bikes as well as wireless charging technology to recharge scooters while parked.
This self-driving technology will relocate or redistribute the products without human labor, reducing operating costs and the use of fossil fuels. Wireless charging technology will be utilized to recharge scooters while parked, providing structured parking that reduces street clutter while simultaneously charging products. Partnerships like these will help decrease operating costs, incentivize hub-based parking, and improve sustainability.
“Our priority is to concentrate on operations locally and develop what’s most cost-effective for our e-mobility systems to make them successful,” said Sean Flood, Chief Executive Officer of Gotcha. “We believe the implementation of universal swappable batteries, self-driving products, and wireless charging technology will make significant improvements to our daily operations, in turn making our systems more profitable.”
Last Mile Holdings acquired Gotcha for a total of US$5 million in cash (US$2.5 million payable at closing and US$2.5 million payable five months following closing) and the issuance of US$7 million in shares of MILE, half of which will be issued at closing and half of which will be issued six months following closing provided certain business milestones are met.
Gotcha is a shared electric mobility company dedicated to providing innovative products and technologies that get people out of single-occupancy cars and safely onto efficient, sustainable micro-transit products. The company operates e-bikes, e-scooters, seated scooters, and e-trikes as transportation solutions tailored to cities and universities across the US. Gotcha empowers communities to lead happier, more productive lives through the transformative power of affordable, accessible micro-transit. For more information, visit ridegotcha.com.
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ABOUT LAST MILE HOLDINGS:
Last Mile Holdings (TSX: MILE), formerly OjO Electric, is one of the largest micro-mobility companies in the U.S., offering the broadest product suite in the industry. Last Mile currently operates 35 college and 45 municipal shared mobility systems under the OjO and Gotcha brands. The acquisition of Gotcha in the first quarter of 2020 provides an expansive growth pipeline and a portfolio of products including e-bikes, e-scooters, e-trikes, and electric seated scooters. For more information, visit Lastmile.holdings.
Last Mile Holdings:
Phone: 877-557-1053 ext. 116