Helbiz Announces Discontinuation of Operations in Non-Profitable Markets

Rhea-AI Summary

Helbiz (NASDAQ: HLBZ), a leader in shared electric micro-mobility, will exit non-profitable markets by spring 2023, aiming to optimize operations in better environments. This decision follows an internal review identifying challenges like inadequate regulatory frameworks, stiff competition, and vehicle oversupply. The company has already completed 90% of the exit process and plans to shift resources to profitable areas. Additionally, Helbiz will implement a long-term rental program in regions with significant user bases but low profitability to maintain service continuity. The firm remains committed to investing in technology and seeking sustainable growth.

Positive

• 90% of exits from non-profitable markets already completed.
• Focus on optimizing operations in favorable environments.
• Implementation of long-term rental programs to maintain user engagement.

Negative

• Exiting markets due to lack of profitability.
• Challenges identified include high competition and vehicle oversupply.

Global leader in shared electric micro-mobility to exit non-profitable markets by spring 2023, focusing on optimizing operations in more favorable environments

NEW YORK--(BUSINESS WIRE)-- Helbiz (NASDAQ: HLBZ), a global leader in shared electric micro-mobility, announced today that it will be discontinuing operations in non-profitable or cash-positive markets by spring 2023. The decision was reached following a comprehensive review of the Company's operations and a determination that certain markets do not possess the necessary conditions for profitability in the near term. The review revealed that these markets are characterized by a lack of robust regulatory frameworks, high levels of competition, an oversupply of vehicles, and overcrowded streets - all of which impede the Company's ability to achieve profitable margins.

Helbiz is a global leader in micro-mobility services. Launched in 2015 and headquartered in New York City, the company offers a diverse fleet of vehicles including e-scooters, e-bicycles, e-mopeds all on one convenient, user-friendly platform with over 65 licenses in cities around the world. The merger with Wheels, a leading player in California, adds an unique sit-down scooter along with long term rental subscriptions for individuals, businesses and universities. Helbiz uses a customized, proprietary fleet management technology, artificial intelligence and environmental mapping to optimize operations and business sustainability.

Helbiz has already initiated the process of exiting these markets on a global level, with 90% of exits already completed. The current focus is on optimizing operations in more favorable operating environments and markets as an integral part of Helbiz's main objective in achieving profitability.

"We have conducted a thorough review of our operations and have determined that these markets do not have the necessary conditions to achieve profitability in the short term. We will be shifting vehicles from our under-performing markets to those with healthy margins and near-term growth prospects," said Salvatore Palella, CEO of Helbiz.

Additionally, in markets where Helbiz or Wheels had a significant user base but were not on a path to achieve profitability, the Company will implement Wheels' long-term rental program as a sustainable solution for our valued customers. This will ensure that no Helbiz user is left without micro-mobility options for their daily intra-urban travels, and that our customers can continue to enjoy the convenience and flexibility of our services. This move is part of our ongoing efforts to provide our customers with the best possible experience while maintaining the financial sustainability of our operations.

The Company is dedicated to remaining at the forefront of the industry and will continue to invest in new technologies and innovative solutions to meet the changing needs of its customers. Helbiz is also actively seeking new markets in which to expand and grow sustainably.

About Helbiz

Helbiz is a global leader in micro-mobility services. Launched in 2015 and headquartered in New York City, the company offers a diverse fleet of vehicles including e-scooters, e-bicycles, e-mopeds all on one convenient, user-friendly platform with over 65 licenses in cities around the world. The merger with Wheels, a leading player in California, adds an unique sit-down scooter along with long term rental subscriptions for individuals, businesses and universities. Helbiz uses a customized, proprietary fleet management technology, artificial intelligence and environmental mapping to optimize operations and business sustainability.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230117005734/en/

Helbiz Contacts

For media inquiries:

press@helbiz.com

For investor inquiries:

The Blueshirt Group | Gary Dvorchak, CFA | gary@blueshirtgroup.com | +1 (323) 240-5796

Source: Helbiz

FAQ

What is Helbiz's plan for exiting non-profitable markets?

Helbiz aims to exit non-profitable markets by spring 2023, focusing on optimizing operations in more favorable environments.

How much of Helbiz's exit process is complete?

Helbiz has already completed 90% of its exit from non-profitable markets.

What challenges is Helbiz facing in non-profitable markets?

Challenges include lack of regulatory frameworks, high competition, and an oversupply of vehicles.

What will Helbiz do with vehicles from exited markets?

Vehicles from under-performing markets will be shifted to locations with healthier profit margins.

What is Helbiz's strategy for sustainable growth?

Helbiz will invest in new technologies and seek new markets for sustainable expansion.