New Delhi: Micro Mobility services provider recently announced that it will undertake several measures to reduce costs and staff to lower the monthly burn rate between 20% and 30%.
Over the coming days, staff will be reduced in the US and Europe by 15% across corporate and operations teams. A deep review of current costs and obligations will also be undertaken that will look to further reduce expenditure, the company said in a statement.
Already, Helbiz has been working with third parties and slimming down operations where it makes sense to reduce cost. Lastly, Helbiz will search for partners to share or take over the operation of the Media business to reduce them as on-going cost centres and return focus entirely on mobility business.
“As we reviewed the business, we concluded that our core mobility business has the best potential to quickly achieve profitable operations,” CEO and founder Salvatore Palella, said..
“We will return to focusing only on Mobility, with the goal of becoming the world leader in mobility. To make this happen we must change, cutting costs and divisions. To preserve our capital and get to profitability, we must take action to align our cash usage with the most likely driver of revenue growth in the quarters ahead. This cut will bring the cut burning from 20 to 30% down in the immediate future, we will also start conversations with partners regarding the Media business (Helbiz Live),” he said.
Launched in 2015 and headquartered in New York City, Helbiz offers a diverse fleet of vehicles including e-scooters, e-bicycles, e-mopeds with over 65 licenses in cities around the world. The company uses a customized, proprietary fleet management technology, artificial intelligence and environmental mapping to optimize operations.
Also Read:
With the world quickly moving to EVs, Japanese auto parts suppliers are reviewing strategies that were traditionally tailored for combustion-engine cars, Reiji Terasaka, who heads Carlyle’s Japan industrial team, told Reuters in an interview.