Peixe, a prominent ecommerce firm based out of Latin America, is reportedly in advanced discussions to purchase Grow Mobility, a renowned electric scooter startup. This would make the proposed deal the latest in an overcrowded landscape where profitability is a difficult goal to achieve.
Grow, created through the merger of Brazilian scooter startup Yellow and its Mexican counterpart Grin in 2019, was considered one of the most prominent Latin American startups, bringing in significant interest from top Silicon Valley VC firms.
However, the Mexico-City based company, according to sources knowledgeable of the company’s operations, has been struggling recently to select an effective business model.
Over the recent years, scooter startups have gained a substantial prominence among consumers. At the same time, however, they have also been a subject of outrage among residents and regulators. Primarily because these scooters are increasingly cluttering sidewalks as well as other public places.
Bob O'Donnell, analyst at TECHnalysis Research, stated that a majority of such companies have been quick to boom and quick to bust. In this business landscape, several individuals are looking to see who would be able to outlast whom, without questioning whether it is viable.
Some technology industry insiders are convinced that mobility startups that focus on scooters and bikes make more sense if they are a part of a bigger portfolio, rather than being standalone companies.
At the beginning of the year, California based scooter startup, Bird, announced that it would be acquiring its European counterpart, Circ. While the company did not disclose the financials related to this deal, it marked a further consolidation of the mobility industry.
While the exact terms of the acquisition deal are yet to be finalized, sources privy to the matter claim, a scenario that is currently under talks is a cashless deal where Grow would receive Peixe shares.