E-commerce firm Peixe in talks to buy electric scooter startup Grow Mobility
These days, one of the Latin-E-Commerce giants, Peixe, is in picture regarding the talks to acquire one of the electric scooter companies named Grow Mobility. It is one of the major deals taking place in this sector with the ultimate goal of profit-making.
With the spreading of education amongst the people and a high rise in pollution because of a large number of vehicles on road, which is increasing day by day, the demand for electrical vehicles is touching a new horizon. And with this steadfast increase and non-fulfillment of the demand amongst the consumers, the big giants of the industry are all set to acquire the small startups to increase their production and profit.
People knowledgeable in the entire matter said that the company is still in the process of finalizing the deal. Also, the proposal us that the entire deal transaction will be cashless, wherein Grow Mobility will be offered shares within the company itself.
Grow Mobility – Emergence and Losses
Grow Mobility has emerged as one of the most promising and prominent startups of Latin America. It was a merger of a Mexican Scooter Company Startup named GRIN and its Brazilian Counterpart YELLOW last year. It has attracted huge interest from the top venture capitalists in the Silicon Valley.
As is well-said, Business is not meant for everyone. You need an effective and efficient strategy to run a business. However, as per the close people of the company, the Mexico based startup has badly struggled in recent months. It has faced a lot of losses due to the lack of a sound business model.
Grow Mobility’s search for a buyer shows a broader shift in the scooter industry. Investors and entrepreneurs have realized that the sector can accommodate so many players, an analyst said.
“Most of these things have been a quick boom and quick bust,” said analyst Bob O’Donnell of TECHnalysis Research.
Who will be profitable?
Now the bigger question is who is able to outlast the other? As per some tech industry insiders, it is better and profitable for mobility startups for 2 wheelers i.e. bikes and scooters, to operate on a large portfolio rather than as standalone companies. So if the deal successfully completes, it would certainly be a profitable deal for both Peixe and Grow Mobility.