TIER’s Company Overview
TIER Mobility is a leading European company in the field of shared micro-mobility services. Founded in 2018 and headquartered in Berlin, Ger...
TIER Mobility is a leading European company in the field of shared micro-mobility services. Founded in 2018 and headquartered in Berlin, Germany, the company operates in over 80 cities across 13 countries, providing an eco-friendly transportation alternative through its fleet of electric scooters. TIER is committed to a sustainable and convenient mode of transport that reduces carbon emissions and traffic congestion in urban areas. The company's mission is to "Change Mobility for Good" and its vision is to lead the way towards seamless and sustainable mobility by empowering people to live car-free.
TIER's business model revolves around providing a shared scooter service to consumers in urban areas. Users locate and unlock the e-scooters through the TIER app, then pay a one-time unlock fee, and a per-minute usage fee thereafter. The company also offers monthly and yearly subscriptions for regular users, providing unlimited rides within a certain limit of minutes per day. TIER ensures the scooters are well-maintained and charged by employing a team of local operational staff, known as "Rangers".
As for the revenue model, TIER primarily generates income from the per-minute fees and unlock fees charged to users. The rates may vary depending on the city and country, but generally, users are charged a fixed amount to unlock the scooter and then a per-minute fee for the duration of the ride. Additionally, the subscription plans contribute to a steady stream of recurring revenue. TIER also explores partnerships with local businesses and municipalities, offering branded scooters and designated parking spots, which serve as additional sources of revenue.
Headquater: Berlin, Germany, EU
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Foundations date: 2018
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Company Type: Private
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Sector: Transportation
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Category: Mobility
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Digital Maturity: Digirati
TIER’s Revenue Model
TIER makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:
TIER makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:
- Transportation as a Service (TaaS)
- Pay as you go
- On-demand economy
- Mobile first behavior
- Digital transformation
- Sharing economy
- Technology trends
- Dynamic pricing
- Peer to Peer (P2P)
- Dynamic pricing
- On-demand economy
- Product innovation
- Combining data within and across industries
- Codifying a distinctive service capability
- Uberization
- Disruptive trends
- Lean Start-up
- Blue ocean strategy
- Rent instead of buy
- Customer data
- Sustainability-focused
Analytics
Market Overview
TIER’s Case Study
From the bustling streets of Berlin to the cosmopolitan avenues of Paris, TIER Mobility has revolutionized the way we navigate our urban landscapes. Founded in 2018 and headquartered in Berlin, TIER has emerged as a front...
TIER's Case Study
From the bustling streets of Berlin to the cosmopolitan avenues of Paris, TIER Mobility has revolutionized the way we navigate our urban landscapes. Founded in 2018 and headquartered in Berlin, TIER has emerged as a frontrunner in the field of shared micro-mobility services. Our story is one of innovation, determination, and a steadfast commitment to sustainability—a blend that makes TIER a unique case study in the modern transportation sector.
The Birth of a Mobility Pioneer
TIER Mobility was born out of a passion for eco-friendly transportation. The brainchild of Lawrence Leuschner, Matthias Laug, and Julian Blessin, the company aimed to offer a sustainable alternative to traditional modes of urban transportation. Within just a few years, TIER expanded its footprint to over 80 cities across 13 countries, providing an easily accessible fleet of electric scooters that users can locate and unlock through a mobile app. This rapid expansion was no small feat, supported by an impressive series of funding rounds that raised over $270 million by late 2021 (Crunchbase).
Unique Value Propositions
What sets TIER apart from competitors in the micro-mobility sector? The answer lies in our multi-faceted approach to creating a sustainable and convenient mode of transport. Here are three critical aspects of our value proposition:
Sustainable Mobility: We offer a range of electric vehicles designed to reduce car traffic in cities, promoting cleaner air and lesser congestion. In fact, TIER is the first fully climate-neutral micro-mobility company, balancing out emissions from all operational aspects (TIER Sustainability Report 2022).
Easy Access: Our services are easily accessible through our app, making urban travel more convenient. Users simply locate a scooter, unlock it, and start their journey—no hassles, no complexities.
Cooperation with Cities and Partners: We work closely with municipalities, public transport operators, and local communities to offer seamless mobility solutions, thus aligning our objectives with those of the city planners.
Business Model and Revenue Streams
Our business model revolves around providing shared scooter services to urban consumers, leveraging two primary revenue streams: per-minute usage fees and subscription plans.
Users are charged a one-time unlock fee and a per-minute usage fee thereafter. While rates vary depending on location, the model ensures that our revenue is directly correlated with scooter utilization. Subscription plans offer regular users the option for unlimited rides within a certain daily limit, creating a steady stream of recurring revenue.
Furthermore, partnerships with local businesses and municipalities provide additional income sources. For example, branded scooters and designated parking spots offer value-added services that attract both riders and sponsors.
Operational Efficiency: The Role of "Rangers"
Maintaining our fleet of scooters in pristine condition is crucial for user satisfaction and operational efficiency. Enter the "Rangers"—local operational staff responsible for the upkeep and charging of our scooters. These Rangers ensure that our fleet is always operational and meet stringent quality standards. Through this model, we not only provide reliable services but also generate local employment opportunities, contributing to the community.
Sustainability at the Core
Sustainability isn't just a buzzword for us; it's a core principle around which TIER operates. As the first climate-neutral micro-mobility company, we take considerable measures to ensure our operations have minimal environmental impact. According to our 2022 Sustainability Report, our commitment to carbon neutrality extends to every scooter ride. This achievement places us ahead of many competitors who are only beginning to consider the environmental impact of their services.
Technological Innovation and Data Utilization
Our proprietary data set provides unmatched accuracy in understanding end-user behavior. We employ next-gen analytics to identify the perfect audience for our products or messages. As cited in a recent whitepaper by Gartner, companies that effectively utilize data analytics can improve their decision-making capabilities by 60%. TIER dedicates significant resources to experimenting with new channel formats and targeting features within existing channels, allowing us to stay ahead of market trends and customer expectations.
Conclusion: The Future of Urban Mobility
In essence, TIER is not merely a company offering electric scooters; it's a transformative force in the urban mobility landscape. Our blend of sustainability, convenience, and relentless innovation positions us uniquely in the market. As cities grow and evolve, the demand for sustainable, efficient, and user-friendly transportation solutions will only increase.
With our expanding footprint and unwavering commitment to changing mobility for good, TIER is poised to lead this dynamic sector well into the future. In doing so, we continue to pave the way towards a seamless, eco-friendly transportation experience that empowers people to live car-free.
As we navigate the challenges and opportunities ahead, we remain steadfast in our mission—to change mobility for good, one electric scooter at a time.
This is our story. This is TIER.
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