Scooter-sharing startup WeMo scores series A money in AppWorks-led round

WeMo Scooter, a Taiwanese e-scooter sharing startup, has closed its “multimillion-dollar” series A funding round led by regional accelerator and early-stage VC AppWorks.

Photo credit: WeMo

With the new funds, WeMo looks to continue extending the reach of its services in key cities across Taiwan.

It also aims to start laying the foundation for its regional expansion plans by bolstering its research and development center on the island. Over the next three years, the center looks to hire 100 engineers for roles such as front-end and back-end development, self-driving technology, vehicle telematics, and machine learning.

According to WeMo CEO Jeffrey Wu, the company is planning several more projects for different parts of Asia.

What problem is it solving? There are currently 14 million motorcycles plying the streets of Taiwan, said a spokesperson for WeMo. “However, each motorcycle is only used for less than 40 minutes per day on average,” the spokesperson said, adding that the exhaust from these vehicles is responsible for a huge amount of pollution in the city.

Like other smart mobility companies, WeMo aims to reduce air pollution while giving its customers a convenient and personalized mode of transportation without having to own a vehicle.

The startup, however, also boasts the use of “internet of vehicles” (IoV) and big data analytics. IoV is a network that supports the exchange of information collected from infotainment systems, sensors, and GPS units between connected vehicles.

With these technologies, the company is able to provide convenient features such as digital ID verification and a “quick ride” function, which lets users search for and start using the nearest unused e-scooter through its app.

What’s the opportunity? The global scooter-sharing market is predicted to grow to US$553 million by 2025, up from just US$99.8 million in 2018, according to Research and Markets.

During the forecast period, the market’s growth in Asia Pacific is expected to be the most rapid, mainly due to the high adoption of shared scooters in Taiwan and China.

In Taiwan, WeMo competes with iRent, a service run by Toyota’s local sales agent Hotai Motor Group, and GoShare, which is operated by the island’s largest e-motorcycle brand Gogoro.

WeMo sets itself apart by being the only provider that develops its own technology. It also invests in IoV solutions to improve user experience and acts as a platform for future smart city applications.

According to Wu, WeMo has managed to continue its growth in Taiwan even after competitors entered the market. However, the CEO declined to disclose specific information, saying it may give away “too much competitive intelligence” to its peers.