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After takeover by dott: Scooter-sharing brand Tier disappears

(dpa) In January, the e-scooter providers Dott and Tier merged. There will no longer be two brands: The turquoise scooters will get a new paint job. The provider believes the market consolidation will continue.

Election Advertising: For the European elections, the providers had advertised with free rides to the polling station, each in a separate look. Now the typical turquoise of Tier is to disappear. | Photo: Tier/Dott
Election Advertising: For the European elections, the providers had advertised with free rides to the polling station, each in a separate look. Now the typical turquoise of Tier is to disappear. | Photo: Tier/Dott
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Johannes Reichel

The turquoise E-scooters from the provider Tier will soon receive a new paint job, and the brand itself will disappear. After being acquired by the Dutch-French competitor Dott in January of this year, the vehicles will in future operate uniformly with the Dott design, as announced by the company. The Tier app will also be shut down. Users will have to switch to the Dott platform. "We surveyed many customers and found that brand recognition for Dott is stronger across all 21 countries," said Philipp Haas, Managing Director for the markets in Germany, Austria, and Switzerland, to the German Press Agency. 

Only in Germany is Tier more well-known. But: "In Germany, we noticed that branding or the brand itself is not as relevant," emphasized Haas. Reliability in the service and availability of the vehicles are the focus for users. The transition in Germany is set to begin in mid-October and will be completed in a few weeks.

Markets complement each other

Dott and Tier merged in January. Dott is particularly strong in the Benelux countries and France, while Tier was mainly active in the German-speaking region. The vehicle portfolio includes E-scooters as well as e-bikes. After the Dott acquisition, Tier parted ways with the conventional bike rental business. E-mopeds have also not been part of the offering for some time now.

The e-scooter market is considered highly competitive. After a strong growth phase in the first few years following approval in 2019, companies are now focusing on saving and profitability. Nonetheless, Haas believes that the consolidation of the market is not yet complete.

“We do believe that there will be further mergers,” he emphasized. “However, we will not be involved in that.” 

He mentioned that there has not been any further large-scale job cuts at Dott and Tier during the merger. As part of the strategy shift towards greater profitability, Tier cut nearly 200 jobs in 2022. Dott aims to be in the black before interest, taxes, and depreciation already this year.

Translated automatically from German.
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