European bike share service raises 5m EUR to expand service

Donkey Republic, one of Europe’s leading bike sharing service, has raised 5m EUR via a loan agreement with Nefco, the Nordic Green Bank. The money will be used to finance the renewal and expansion of Donkey Republics bike fleet across Europe.

With a focus on create more sustainable cities, Donkey Republic delivers responsible and affordable micro-mobility by providing cities and partner organisations with the turnkey Donkey bike- and ebike solution. The business also operate directly our own bike sharing services.

The 5m EUR loan will be used to purchase approximately 6.000 bikes and e-bikes that will be deployed across the cities Donkey Republic is operating in. This addition this will both replace and expand the existing fleet in those cities.

Donkey Republic  believes in making sustainable mobility available to everyone as well as focusing on the green, physical and mental health benefits from using their bikes. As such the business works to challenge the entire mobility industry to rethink what it means to be a sustainable mobility company.

Road transport is the second largest source of greenhouse gas (GHG) emissions and fine particulate matter, and the largest source of NOx in Europe (Europa Environment Agency). To tackle that, Donkey Republic offers bike-sharing solutions that enable and encourage the replacement of private cars and other fossil-fuel vehicles in urban environments. Bike-sharing services is greening urban transport.

The availability of shared micro-mobility enables the transition away from fossil fuel vehicles. Easy availability and affordable usage are important factors.

“Our mission is to make cities more liveable by offering cities and citizens a convenient, affordable and sustainable bike sharing service” says Erdem Ovacik, CEO at Donkey Republic. “In addition to the enormous environmental gains, cycling also brings substantial health benefits thanks to physical activity it offers”.

Making use of debt financing to grow the company’s fleet is an integral part of Donkey Republic’s strategy. This loan is therefore a strong testament that Donkey Republic is well on track on executing its strategy.

“This type of business requires large upfront investments. Nefco wants to promote zero-emission modes of transportation and sees long-term potential in Donkey Republic’s solution and growth prospects. As a high-risk debt financier, we are ready to finance this stage to help the company grow and later attract additional lenders,” commented Søren Rasmussen, Investment Manager at Nefco.

In the UK, research conducted by Collaborative Mobility UK (CoMoUK) has found that 53% of bike share scheme users chose a scheme in place of car or taxi. The result: bike share schemes remove 3.7 car miles, per user, every week.

The creation of new cyclists has become a central goal for the bike trade and bike sharing has played an at times controversial role in edging closer to a higher modal share. CI.N asks a panel of Cycling Industries Europe’s bike share working group experts for their insights on the future and how the wider business may benefit.