Tier sells Nextbike to private equity firm

'Two distinct business and operating models' is given as reason for sale
By Adam Hill April 30, 2024 Read time: 2 mins
Nextbike: soon to be under new ownership (image: Tier Mobility)

Afer two years of ownership, Tier Mobility is selling its Nextbike bike-share brand to Star IV, a fund managed by private equity provider Star Capital Partnership.

The deal, which is expected to go through in May, means that the Leipzig-based company will be independent as Nextbike. 

A statement from Tier says: "The main reason for the current spin-off is the two distinct business and operating models: Nextbike focuses on subsidised bike-sharing contracts with the city as their customer, Tier-Dott’s core business model is B2C shared e-scooters & e-bikes, with the end user as our customer and the city as our key partner."

Since these business models have "distinct tender requirements and product needs", they will be better off as separate entities, Tier adds: "Each company will have greater success in building the best service for their customers independent from one another."

Nextbike says that had revenues of  European market leader generated revenue of €59.3m in 2023 and has 115,000 bikes across 300 cities in 20 countries.

The company says it will "continue to focus entirely on its core business - the development and integration of custom bike sharing solutions for public transportation infrastructures of cities and municipalities throughout Europe". 

Nextbike's Simon Stephan says: "In recent years, we have proven to be particularly resilient and innovative. Nextbike, together with its municipal partners, has not only established bike sharing as an integral component of local public transport but has also developed a stable and economically sustainable business model with this format. Long-term reliability is key when it comes to public infrastructure and services. With Star Capital, we now have an experienced and established partner behind us to continue Nextbike's success story for the next 20 years."

Philipp Gensch of Star Capital says there is "great potential for organic growth" for Nextbike.

The company "is driven by innovation like a start-up and at the same time offers the reliability of an established industry leader", he adds.

Mass Transit & MaaS Classification & Data Collection

For more information on companies in this article

Related Content

  • Redflex enforces commitment to ethics
    May 29, 2013
    Redflex has introduced stringent ethical and procedural requirements following an investigation into corruption in Chicago. Like the Phoenix, which also happens to be the name of the company’s home city, Redflex Traffic Systems has been reborn. Following a headline-making public relations debacle late last year, Redflex has reinvented itself, establishing a series of stringent policies and procedures to ensure ethical business conduct, while continuing to deliver the traffic safety technology and services t
    Read More
  • Stocchi takes on transatlantic tolling tasks
    March 20, 2017
    We talk to Emanuela Stocchi, the first overseas-based female president of IBTTA and well placed to view tolling on both sides of the Atlantic. As incoming president of the International Bridge, Tunnel and Turnpike Association (IBTTA), Emanuela Stocchi aims to bolster the ‘international, mobility and connections’ elements of the US-based tolling organisation.
    Read More
  • TagMaster acquires Citilog in France 
    April 29, 2021
    Deep Learning algorithms make attractive target for edge- and cloud-based solutions
    Read More
  • Cooperative infrastructure systems waiting for the go ahead
    February 3, 2012
    Despite much research and technological promise, progress towards cooperative infrastructure system deployment is still slow. Here, Robert Cone and John Miles take a considered look at how and when it might come about. From a systems engineering viewpoint it looks logical and inevitable that vehicles should be communicating between themselves and with the road infrastructure. But seen from a business viewpoint the case is not proven.
    Read More

Highlighted Content