In a significant move towards promoting sustainable urban mobility, Forest, a London-based shared bike operator, has secured €15.3 million in funding. This investment marks the first close of their Series B round and is set to fuel the expansion of their electric bike (e-bike) fleet and reinforce their commitment to environmentally responsible operations. This substantial financial boost not only highlights the growing confidence in micromobility solutions but also underscores the critical role e-bikes play in shaping greener cities.
The Funding and Its Impact
The €15.3 million investment includes a facility of up to €11.8 million in Asset-Backed Finance from Fintex Capital, with the investment led by Fintex’s CIO Sophie Batoua. This funding injection is earmarked for several key areas:
- Expanding the E-bike Fleet: Forest plans to introduce three new e-bike types to its fleet, catering to a wider range of user needs and preferences. This diversification aims to make their service more accessible and appealing to a broader audience.
- Investing in Sustainable Growth: The funding will also be used to bolster Forest’s commitment to sustainable and responsible growth. This includes investments in research and development, technology, and operational enhancements to ensure long-term viability and environmental stewardship.
- Widening Access: The company plans to launch new models such as ForestCargo, ForestDuo, and ForestKid, which will help to expand access to the shared schemes and reduce car dependency.
Agustin Guilisasti, CEO and Founder of Forest, emphasized that the investment will allow the company to accelerate its growth, prioritize rider safety, and maintain responsible operations. He also noted the company’s dedication to forming long-term partnerships with cities and public transport providers to make sustainable mobility affordable for all.
Forest’s Commitment to Sustainability
Founded in 2020, Forest has quickly positioned itself as a leader in affordable and environmentally sustainable micromobility. The company’s operations are ‘zero-emission,’ with every bike and service vehicle powered by renewable energy. This commitment to sustainability is a core aspect of their business model and is reflected in their recent achievements:
- Zero-Emission Operations: Forest’s fleet and service vehicles are powered solely by renewable energy, contributing to reduced carbon footprints in urban areas.
- Redefining Urban Mobility: Forest has been instrumental in redefining urban mobility in London since entering the bike-share market, promoting a shift towards more sustainable transportation options.
- Expansion Plans: With a bid submitted for the Paris tender, Forest is looking to extend its sustainable e-bike model to other major cities. They currently complete more than 1.2 million rides per month.
The company’s growth is impressive, with revenues tripling in 2024 and the first full year of profitability, demonstrating the viability of its business model. Their expansion plans for 2025 include entering new cities, further expanding the reach of their sustainable e-bike service. Additionally, Forest has partnered with Bird, another micromobility operator, allowing Bird users visiting London to access Forest’s e-bikes through the Bird app. This partnership aims to increase the accessibility of bike sharing in the city.
The Environmental Benefits of E-bikes
The expansion of e-bike fleets like Forest’s contributes to a broader movement toward sustainable transportation. E-bikes offer numerous environmental benefits:
- Zero Emissions: E-bikes produce zero tailpipe emissions during operation, reducing air pollution in urban areas. They do not release toxic gases or smog, which contributes to respiratory and other health problems.
- Reduced Carbon Footprint: Switching from cars to e-bikes can significantly lower an individual’s carbon footprint. E-bikes produce considerably lower emissions than cars, even when considering the electricity used for charging. Studies have shown that an e-bike can save up to 500 pounds of carbon emissions each year.
- Eco-Friendly Travel: E-bikes rely on both human and electric energy to be propelled, making them an environmentally friendly travel option, and are a step towards sustainable transportation.
- Renewable Energy: E-bikes can be charged using renewable energy sources like solar or wind power, making their use even more sustainable.
- Reduced Traffic Congestion: E-bikes can navigate through bike paths and traffic more easily than cars, reducing traffic congestion and the associated carbon emissions.
- Energy Efficiency: E-bikes are significantly more energy-efficient than cars, including electric cars. They use less energy per mile, making them a highly sustainable travel option. E-bikes can be 10 to 30 times more efficient than electric cars at fighting climate change.
E-bikes and the Local Economy
Beyond environmental benefits, e-bikes also have positive impacts on local economies:
- Job Creation: The rise of e-bikes has created new jobs in various sectors, including retail, maintenance, and delivery.
- Boost to Local Businesses: E-bikes make it easier for people to access local businesses, which encourages more spending and supports the local economy. The maneuverability and ease of parking associated with e-bikes make them a great option for local shopping.
- Tourism: E-bike tourism, including guided tours and rental services, attracts visitors, boosting local economies, and creates job opportunities.
- Reduced Fuel Costs: E-bikes reduce dependence on imported fossil fuels, thereby cutting down on fuel costs.
The integration of e-bikes into tourism provides a responsible and enjoyable way to explore new places. By using e-bikes, visitors are more likely to spend more time in the areas they visit, which helps create a more balanced distribution of tourism benefits, boosting economic resilience.
The Future of E-bikes in Urban and Natural Spaces
As e-bikes become more popular, their role in sustainable transportation is set to expand. This is true for both urban areas as well as national parks and forests. The U.S. Forest Service has updated its guidance for local land managers, allowing for the expansion of e-bike access on trails and grasslands. E-bikes are also attracting a diverse group of riders, including those who may not have considered riding a traditional bike. This helps more people to enjoy the outdoors, and can make physically demanding activities like biking up hills more accessible to a wider range of people. The trend of e-bike use is seen as a positive step towards creating sustainable cities that work for everyone.
Conclusion
Forest’s €15.3 million funding round represents a significant step forward in the quest for sustainable urban mobility. The company’s commitment to zero-emission operations, combined with the environmental and economic benefits of e-bikes, highlights the potential for micromobility to reshape how we move around our cities. With further expansion planned, Forest is poised to play a crucial role in the transition to greener, more sustainable urban environments. This investment not only validates the viability of e-bike sharing as a business model but also underscores its importance in creating a more sustainable future.
