- Electric scooter manufacturer Vmoto (VMT) has received an order for 5904 electric scooters from one of its business-to-business customers
- European company Greenmo Group placed the order to support the roll-out of its ride-sharing platform and rental delivery business in Europe
- As Greenmo has been Vmoto's customer for over five years, the company is pleased to be Greenmo's preferred electric scooter supplier
- Vmoto expects the order will bring about $13 million in revenue and has already begun manufacturing the scooters to be delivered in the current quarter
- Company shares are up 14.6 per cent and trading at 47 cents
Vmoto's (VMT) business-to-business (B2B) customer, Greenmo Group, has placed an order for 5904 electric scooters.
The order represents around $13 million in revenue for Vmoto as Greenmo continues to expand operations across Europe.
Greenmo Group is a European company that comprises Greenmo Rent BV and its subsidiaries. It rents out electric vehicles to food and parcel delivery companies which strongly aligns with Vmoto's strategy.
Currently, Greenmo is rolling out its ride-sharing platform and rental delivery business in the Netherlands, Turkey, Belgium, Germany and Austria.
To support this, it founded GO Sharing, a European ride-sharing company that provides electric scooter rental services through its mobile phone app that allows users to locate, unlock, ride and return GO Sharing electric scooters to different locations.
"Greenmo Group has been Vmoto's partner for more than five years and we are excited to participate in Greenmo Group's significant growth as their preferred electric scooter supplier for their ride-share and rental delivery offerings," Managing Director Charles Chen said.
The companies' strategy of expanding ride-sharing services and increasing B2B orders is supported by multiple European governments that are encouraging consumers to adopt electric vehicles.
This has not only been sparked by the continent's aim to progress to more environmentally friendly modes of transportation but also by COVID-19. Due to the pandemic, social distancing has become the new norm, which has led to a reduction in the use of public transport. So, new ways of getting around, such as electric scooters, have been encouraged.
"We look forward to growing hand in hand together with Greenmo Group and expect to receive further significant orders from Greenmo in 2021 and beyond," Charles concluded.
Vmoto has already begun manufacturing the electric scooters and expects to deliver all 5904 units in the current quarter.
Company shares are up 14.6 per cent and trading at 47 cents at 11:24 am AEDT.