On June 21, two subscription-based companies — Helbiz and Electric Zoo — revealed their respective plans for growth through separate deals: An intent to acquire and a business partnership.
Helbiz, a digital platform for accessing mobile vehicles, announced it is set to acquire Wheels, a company that offers seated electric scooters and additional accessories.
Meanwhile, electric-vehicle (EV) subscription Electric Zoo revealed its new business partnership with Otonomo, a digital platform that tracks data for EVs and other mobile vehicles.
Read on to learn more about how the two subscription companies are leveraging other businesses’ resources to expand their current offerings and reach while also striving to improve the customer experience.
Helbiz Seeks a Broader Reach Through Its Upcoming Acquisition
Helbiz’s acquisition of Wheels “is expected to double revenue, expand the cities served, enhance margins, and reduce costs,” said Helbiz CEO and Founder Salvatore Palella in the press release.
The company’s stock has experienced a downward trend in recent months; the upcoming acquisition could change that.
“Our focus is to adapt and grow with profitability at the core of every decision,” Palella noted in the press release. “This acquisition makes us even more confident in our ability to achieve that goal in the next 18 months.”
Helbiz will look to expand its presence into the growing global electric scooter market — valued at nearly $22.3 billion in 2022 — by leveraging Wheels’ current U.S. markets and their estimated populations for the most common users, ages 25-34:
- New York City: 1.5 million
- Honolulu: 53,456
- Austin: 217,551
- Los Angeles: 723,858
Through this business deal, Helbiz is closer to achieving its goal of decreasing reliance on “climate-harming transportation options,” stated Palella in the press release. Helbiz users will also benefit from using more environment-friendly transportation and decreasing fuel use, especially with rising inflation taking a heavy toll on gas prices.
In addition to enhancing its e-scooter offering, Helbiz will continue to provide its users with e-bikes and e-mopeds, alongside other services.
Electric Zoo Leverages External Data Through New Business Partnership
Electric Zoo revealed that, prior to announcing its business partnership with Otonomo, it struggled collecting certain data points from its fleet, according to the press release.
Through Otonomo’s platform and resources, the EV company stated that it expects to be able to efficiently refine its subscription model with the implementation of flex-pay options and discounts for low mileage.
“These data-driven insights eliminate the guesswork for fleet managers and allow them to plan business expansion, prioritize investments, and create new efficiencies based on macro to micro visibility and near real-time intelligence,” said Anders Truelsen, Chief Revenue Officer at Otonomo, in the press release.
The business partnership with Otonomo will empower Electric Zoo to provide new features to its subscribers, such as directions to the nearest charging stations.
As noted by best-selling author Bernard Marr in Forbes, using external data “…can allow you to streamline and drive efficiencies throughout your existing business models or even transform in a way that allows you to create entirely new ones.”
In Electric Zoo’s case, the use of Otonomo’s platform grants the company the opportunity to scale quickly and efficiently.
“We chose Otonomo because, as our fleet continues to grow, we need a partner that can help us scale,” said Lash Saranna, Founder and CEO of Electric Zoo, in the press release. “The data and insights from Otonomo are directly and positively impacting the future of our company.”
Improving Your Subscription Offering Through Business Partnerships
Business deals in the subscription space present an opportunity for brands to enhance their current offerings.
In the last few years, several subscriptions have experienced success through notable business deals.
The New York Times, for example, acquired The Athletic on Feb. 2, 2022, which enabled the media company to reach its 2025 goal of acquiring 10 million subscribers three years ahead of time.
Similarly to Electric Zoo and Otonomo’s business partnership, BigCommerce enhanced its offering with data made available through its partnership with Chargify and Ebizo.
Success can be achieved through business partnerships and acquisitions in the subscription industry, as there is potential for expansion into new markets, increased customer reach, and brand awareness through leveraging deals. The only question you need to ask yourself is: Will this acquisition/partnership bring added value to your subscribers?
Key Takeaways:
- Helbiz, a digital platform for accessing mobile vehicles, has announced it is set to acquire Wheels, a company that offers seated electric scooters and additional accessories.
- Electric vehicle (EV) subscription Electric Zoo has introduced its business partnership with Otonomo, a digital platform that tracks data for EVs and other mobile vehicles.
- By enhancing your offering with business partnerships, there is potential for expansion into new markets and increased customer reach.
- In choosing the right company to partner with, your brand has the opportunity to leverage the other’s offerings, helping to fill potential gaps in your subscription model and enhance it further.
Looking for more ways to grow your brand? Discover the latest trends on how subscription businesses can expand by attending SubSummit!
