Avocargo e-cargo-bike sharing company receives 7-figure investment

German e-cargo-bike sharing startup Avocargo is reported to have raised more than a million Euros in its first round of financing. The round is led by EIT InnoEnergy, a major European investor in the green economy.

The aim of the investment round is to enable Avocargo to further expand its operations in Germany, as well as to expand its in-house tech development team and hardware improvements.

The goal of Avocargo is to offer an attractive alternative to private cars. The e-cargo-bikes don’t have to be returned to a station and as such these can be used extremely flexibly. The machines must be locked to a fixed object at the end of use and a photo must be taken of it which is uploaded via the app – this should avoid cluttering and dumping.

At the same time as its offer to the general public, Avocargo is working directly into businesses. As well as getting sponsorships from retailers to subsidise their shoppers’ rides, it can work with q-commerce and restaurant delivery companies for their riders to use its machines.

“With Avocargo, we want to close a crucial gap in the mobility market,” says Matti Schurr, CEO of Avocargo. “Current forms of mobility are largely focused exclusively on getting individuals from point A to point B. We, on the other hand, want to create an offering that goes beyond that to include the shopping, your child, or dog, and we want to do it in a sustainable way. The funding will help us expand our range of e-cargo bikes and is a strong confirmation of our potential in the European mobility market.”

Christian Müller, CEO of EIT InnoEnergy in Germany, comments “Electric cargo bikes have exactly the features that the combustion engine car lacks to play a leading role in our urban transport mix in the future. They are emission-free, save space, are cost-effective, and are predestined for a wide range of applications. It was about time that they were now also made available in a free-floating model for all those who do not want to purchase their own cargo bike. Avocargo has clearly recognised this and developed an enormously promising business model for B2C and B2B sectors.”

Avocargo launched in June this year with ten e-cargo-bikes in a small district of Berlin. By September the bike sharing company had 110 e-cargo-bikes and the area was expanded from Berlin Prenzlauer Berg to Friedrichshain and Mitte. It plans to expand its operations to other German and European cities in 2022.