Forest, a London-based micromobility provider, is set to revolutionize urban transportation with the introduction of three new e-bike models. This expansion is backed by a substantial £13 million investment, marking a significant step in the company’s growth and commitment to sustainable mobility.
New E-bike Models to Cater to Diverse Needs
The fresh capital injection, the first close of its Series B funding round, includes £3 million from B8 Venture Partners and up to £10 million in asset-backed finance from Fintex Capital. This funding will enable Forest to add three new e-bike variants to its fleet in 2025:
- ForestCargo: Designed for carrying items such as groceries or small luggage.
- ForestDuo: This model is built to safely transport a passenger.
- ForestKid: Intended for parents to bring their children to school or other locations.
These new models underscore Forest’s dedication to reducing car dependency in cities and making cycling accessible to a wider audience. The company also aims to achieve gender parity among its riders by 2027.
Expansion Plans and Profitability
Forest plans to launch these new e-bike models in London in late 2025. The company has seen considerable success in 2024, completing over 10 million trips and achieving its first full year of profitability. This strong performance has fueled ambitions for further expansion into Europe, with a particular interest in the rapidly growing bicycle market in Paris. Forest has already submitted a bid for the Paris tender, and if successful, the contract will take effect in the summer.
Investment in Technology and Sustainability
The recent funding will not only support the introduction of new e-bikes but also further develop Forest’s technology platform. This includes enhancing their advertising technology and parking compliance software. Forest’s unique advertising-led revenue model allows them to keep prices low by serving users with adverts before and after their ride. This approach has helped the company to gain a strong user base. The company’s commitment to sustainability is further evidenced by its B Corp accreditation, one of only two micromobility companies globally to achieve this and the only micro-mobility company to have received Verra validation.
Forest’s Journey So Far
Founded by Agustin Guilisasti, along with Caroline Seton and Michael Stewart, Forest launched in 2021. Despite a setback early on, when the company had to recall its bikes due to safety concerns, Forest has grown steadily, reaching half a million users and securing licenses in twelve London boroughs.
The company has experienced remarkable growth, averaging 35 percent month-over-month. A key differentiator for Forest is its affordability, with trips being 50 percent cheaper than competitors over a 20-minute period. This has led to a strong commuter user base, with over half of the users completing more than one trip daily. The company also provides 10 free minutes of riding per day to all users, a feature that distinguishes it from its competition. In the last three years, Forest has given its users nearly 52 million free minutes of riding, foregoing £11 million in revenue.
The E-bike Market and Competition
The e-bike market is experiencing significant growth, driven by government initiatives to reduce carbon emissions and an increasing awareness of the negative impacts of fossil fuel vehicles. This surge in demand has led to a competitive landscape, with several players vying for market share.
In London, Forest competes with other major operators such as Santander Cycles (docked) and Lime. Other notable companies in the e-bike sector include Tier and Dott. While these companies also provide e-bike services, Forest distinguishes itself through its unique advertising model, its focus on affordability, and its commitment to sustainability. Forest’s unique gamification strategy, coupled with a focus on building a loyal customer base, has also fueled its remarkable growth.
Key Competitors in the E-bike Market
| Competitor | Business Model | Key Features |
|———————-|—————————————–|—————————————————————————|
| Santander Cycles | Docked bike-sharing system | Established network, traditional model |
| Lime | Dockless e-bike and e-scooter sharing | Wide availability, focuses on urban mobility |
| Tier | Dockless e-bike and e-scooter sharing | Offers both e-bikes and e-scooters |
| Dott | Dockless e-bike and e-scooter sharing | Provides a range of micromobility options |
| HumanForest (former name)| Dockless e-bike sharing | Now Forest, known for affordability, and advertising revenue model |
Forest’s Technological Edge
Forest is not just about providing e-bikes; it also focuses on integrating advanced technology to enhance the user experience. The company is developing its advertising technology platform to connect brands with riders and make the service more affordable. Additionally, it is working on parking compliance software to ensure that bikes are parked responsibly.
Forest’s approach also involves gamification, rewarding users for parking in designated areas. This encourages responsible usage and helps maintain the orderliness of the bike-sharing system. This, along with their free minutes, has helped them surpass the one million user milestone.
A Look at Forest’s E-bikes
While Forest’s primary focus is on shared e-bike services, another company, Forest Bikes, offers high-performance off-road e-bikes. These bikes are designed for adventure and exploration, featuring powerful mid-drive motors and durable components.
The Forest Summit Series includes:
- Full-Suspension (FS): Designed for challenging terrains with front and rear suspension.
- Hardtail (HT): A front-suspended model for versatile off-road riding.
- Step-Through (ST): Offers an easy-to-mount frame for accessibility and comfort.
These bikes are equipped with a 750-W Bafang M620 Ultra mid-drive motor, a 10-speed Shimano Deore gearset, and a 1,000-Wh downtube battery. The Forest Summit Series aims to redefine what’s possible with off-road riding.
Technical Specifications of the Forest Summit Series:
| Feature | Specification |
|————————|————————————————|
| Motor | 750W Bafang M620 Ultra mid-drive |
| Max Power | 1500W |
| Torque | 160 Nm |
| Battery | 1000 Wh |
| Gearset | 10-speed Shimano Deore |
| Display | 4-inch Bafang display |
| Suspension (FS) | Full suspension with four-bar linkage |
| Suspension (HT and ST) | Lockout air suspension fork |
| Wheels | 26-inch with Kenda tires |
The Future of E-bikes and Micromobility
The e-bike market is projected to continue its rapid expansion, with innovations focused on enhanced performance, battery efficiency, and smart features. The trend towards eco-friendly transportation is expected to drive the adoption of e-bikes for commuting, recreation, and cargo transport.
Forest’s recent investment and the launch of new e-bike models demonstrate its commitment to providing sustainable and affordable mobility solutions. The company’s innovative approach to shared mobility, combined with its focus on technology and sustainability, positions it well for continued success in the evolving micromobility landscape. As cities continue to prioritize green transportation options, companies like Forest are poised to play a critical role in shaping the future of urban mobility.
In Conclusion:
Forest’s £13 million investment and the introduction of three new e-bike models signify a major step forward for the company and the micromobility sector. With a focus on affordability, sustainability, and technology, Forest is well-positioned to meet the growing demand for eco-friendly transportation. The company’s expansion plans and commitment to innovation underscore its potential to become a leading player in the global e-bike market.
