Building a more resilient business for 2023

Building a more resilient business for 2023

Mina Nada, Zoomo Co-Founder and CEO

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Today we informed the team of the difficult decision to reduce our global workforce by 16% to safely steer Zoomo through the challenging economic climate we currently face.

In the past 12 months, we have seen major changes in the economic environment. A year ago, we could not keep up with demand, supply chain was snarled and capital was abundant. We made decisions in line with our environment. Fast forward to today, and we’re witnessing an increasingly challenging macro-economic environment with increased risks of softened demand and tighter capital. That requires an adjustment in our strategy and cost-base.

We’ve not taken this decision lightly and know it will directly impact the lives of many of our incredible Zoomo employees. For this, we’re deeply sorry and are doing everything we can to support these individuals through the transition process.

While this has been an incredibly tough decision to make, we did so to strengthen our position next year and build resilience as we enter a period of higher recessionary risks. We have an important mission, and the journey to fulfil that mission is dependent on us building a resilient business.

What does this mean?

Every department in the business has been affected as we reduce roles that no longer align with a more focused business strategy and accelerate our pace towards achieving profitability. We will also deprioritise our operating footprint in select cities and pause select projects.

Each employee has played a crucial role in our business journey, and for that, I personally cannot thank the team enough. Our focus is now on supporting these talented Zoomers to find a new role. Next week, I will be posting an opt-in list of those talented employees impacted. To those businesses hiring, I encourage you to please consider them.

By placing a targeted focus on our highest-potential markets and core projects, we believe we are putting Zoomo in the best position to support our customers and partners as they strive to improve their operations and electrify their fleets. This decision will ultimately put the business in a stronger position to be the dominant operating system for commercial micromobility fleets.

Where do we go from here?

Transport currently accounts for over 20% of GHG emissions globally. At the same time, the number of delivery vehicles in the top 100 cities globally is expected to increase by 36% until 2030, resulting in an emissions increase of 32%.

If we want to decarbonise our world, transportation needs to change. Light electric vehicles are forecast to lead this charge, with two, and three-wheeled EVs predicted to abate more carbon emissions than standard/four-wheeled EVs by 2040.

Zoomo is playing a crucial role in transforming cities on a global scale by providing businesses and individuals access to efficient, accessible, and sustainable mobility solutions.

While today we are deeply saddened to say goodbye to many incredible team members, we have the utmost confidence in the direction of the business and are driven by our passion to help transition millions of urban miles to light electric vehicles.

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