Company will reduce U.S. and European staff, review costs and search for partners for Media Business Lines to shorten the path to profitability.
Helbiz (NASDAQ:HLBZ) today announced that it will undertake several measures to reduce costs going forward to lessen the financial burden of the company and shorten the path to profitability. The cost cuts and staff reduction will lower the monthly burn rate between 20 to 30%.
Over the coming days, staff will be reduced in the U.S. and Europe by 15% across corporate and operations teams. As well, a deep review of current costs and obligations will be undertaken that will look to further reduce spend. Already, Helbiz has been working with third parties and slimming down operations where it makes sense to reduce cost. Lastly, Helbiz will search for partners to share or take over the operation of the Media business to reduce them as on-going cost centers and return focus entirely on mobility business.
“As we reviewed the business, we concluded that our core mobility business has the best potential to quickly achieve profitable operations,” said CEO and Founder Salvatore Palella. “We will return to focusing only on Mobility, with the goal of becoming the world leader in mobility. To make this happen we must change, cutting costs and divisions. To preserve our capital and get to profitability, we must take action to align our cash usage with the most likely driver of revenue growth in the quarters ahead. This cut will bring the cut burning from 20 to 30% down in the immediate future, we will also start conversations with partners regarding the Media business (Helbiz Live).”
Helbiz is a global leader in micro-mobility services. Launched in 2015 and headquartered in New York City, the company offers a diverse fleet of vehicles including e-scooters, e-bicycles, e-mopeds all on one convenient, user-friendly platform with over 65 licenses in cities around the world. The merger with Wheels, leading player in California, adds an unique sit-down scooter along with long term rental subscriptions for individuals, businesses and universities. Helbiz uses a customized, proprietary fleet management technology, artificial intelligence and environmental mapping to optimize operations and business sustainability. Helbiz is expanding its urban lifestyle products and services to include live streaming services, food delivery and more, all accessible within its mobile app. For additional information, please visit www.helbiz.com.