Electric scooter rideshare company OjO Electric is set to acquire Gotcha Mobility, a developer of shared mobility products.
OjO, which provides an on-demand programme in Austin, Dallas and Memphis, revealed that it has entered into a binding letter of intent with Gotcha, pursuant to which OjO will acquire 100% of the equity of Gotcha on or before December 31, 2019.
The acquisition gives OjO immediate access to Gotcha’s portfolio of exclusive long-term contracts with 35 universities and 42 municipalities across the USA, and expands OjO’s product offerings to include pedal bikes, e-bikes, e-scooters, and e-trikes.
As such, OjO will have the third largest micro-mobility footprint in North America after Lime and Bird, with 80 locations and approximately 25,000 mobility units by the end of 2020.
Max Smith, CEO of OjO, said: “We’re excited to share the news of our acquisition of Gotcha. We did extensive homework to find the right partner to expand our presence while joining our mission to change rideshare for good.
“The exclusive nature of Gotcha’s expansive portfolio of long-term contracts is particularly attractive. The markets where we have experienced the best unit economics are those that have taken the approach of limiting permits to a handful of operators, as compared to those where scooter deployments have been more of a free-for-all.
“Gotcha’s strong corporate culture and experienced team make the company a perfect match for OjO.”
Founded in 2009 by CEO Sean Flood, Gotcha has 100 shared e-mobility partners across the USA.
“Our shared visions and goals make this a great fit. We look forward to continued growth as we lead the micro-transit industry together,” said Flood.
“Gotcha’s experience, suite of products, and exclusive contract base – combined with the OjO’s products and positive unit economics – will build a powerful team to grow together.”
Upon completion of the acquisition, OjO will acquire all outstanding membership interests of Gotcha in consideration for the payment of US$5m in cash and the issuance of US$7m in shares of the company.
