VANCOUVER, BC, July 6, 2020 /CNW/ - Last Mile
Holdings Ltd. ("MILE" or the "Company")
(TSXV: MILE) (OTC: AZNVF), a leading micro-mobility
company with the broadest product suite in the industry, today
provided an additional update highlighting certain key performance
indicators driving the recent success and significant growth in its
recently acquired and now fully integrated operating subsidiary,
Gotcha Mobility ("Gotcha"). The Company's announcement is a further
update to a prior press release originally issued on June 17, 2020.
In the first five months of 2020 Gotcha has driven
industry-leading and month-by-month improved single vehicle unit
economics. With an average profit of $2.45 per trip, Gotcha's results year-to-date
represent a nearly 93% premium when compared to the latest publicly
available data for its peers1. Excluding depreciation,
cash contribution per ride of $3.70
represents a 39% contribution margin.
On a total revenue per trip basis, Gotcha's $9.42 average represents a positive differential
of 121% according to the same data source. For further comparison
purposes, Gotcha's performance was recorded over a five-month
period to begin 2020, which included metrics from historically
slower winter months such as January and February, compared to the
leading competitor's reporting period which catalogued a four-week
stretch, including the 2019 Fourth of July holiday, one of the
highest traffic periods of the year.
Year to date, Gotcha has also seen drastic increases in
profitability across its various end markets, driven primarily by
increases of 53% and 208% in riders per month and minutes ridden
per month, respectively2.
"Our thoughtful strategy of negotiating exclusive contracts in
key markets is responsible for both our resiliency in the face of
current conditions and the record ridership we've recorded for
nearly the first half of the year," said MILE CEO Max Smith. "Another benefit of our conscious
approach to growth has been the superior unit economics we've
driven compared to the rest of the industry. Gotcha is a
cost-efficient operator across our 32 active markets. Moreover,
we've been able to drive these results while accounting for
additional costs associated with increased cleaning procedures and
spend related to additional safety messaging to ensure that our
riders are protected and informed when using our vehicles.
"While we are encouraged by our performance through May, we are
even more motivated by our current revenue and contribution
outlook, which indicates that these metrics are continuing to trend
upward from this five-month average. As we continue increasing
engagement within our ridership as well as expanding into new
markets, we expect to grow this leadership position."
Footnotes:
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https://techcrunch.com/2019/07/12/bird-has-positive-unit-economics-with-its-custom-scooter-model-ceo-says/
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https://www.prnewswire.com/news-releases/last-mile-holdings-gotcha-mobility-drives-significant-growth-and--increased-engagement-year-to-date-301078383.html
For more information on Last Mile Holdings, visit
lastmile-holdings.com.
About Last Mile Holdings
Last Mile Holdings (TSXV:
MILE), formerly OjO Electric, is one of the largest micro-mobility
companies in the U.S., offering the broadest product suite in the
industry. Last Mile has 30 university and 50 municipal
contracted shared mobility systems under the OjO and Gotcha
brands. The acquisition of Gotcha in the first quarter of 2020
provides an expansive growth pipeline and a portfolio of products
including electric bikes, trikes, scooters, and cruisers. For more
information, visit lastmile-holdings.com.
Follow us on social:
LinkedIn: Last Mile Holdings
About Gotcha Mobility
Gotcha, a subsidiary of Last
Mile Holdings, is a shared electric mobility company dedicated to
providing innovative products and technologies that get people out
of single-occupancy cars and safely onto efficient, sustainable
micro-transit products. The company operates electric bikes,
trikes, scooters, and cruisers as transportation solutions tailored
to cities and universities across the US. Gotcha empowers
communities to lead happier, more productive lives through the
transformative power of affordable, accessible micro-transit. For
more information, visit ridegotcha.com.
Follow us on social:
Instagram:
@RideGotcha
Facebook: @RideGotcha
Cautionary Statement Regarding Forward-Looking
Information
This news release includes certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian securities legislation that are not
historical facts. Forward-looking statements involve risks,
uncertainties, and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Forward-looking statements in this news release include, but are
not limited to, statements with respect to: Last Mile Holdings and
Gotcha's business and prospects and the Company's objectives, goals
or future plans, including the planned deployment of its mobility
units; and the business, operations, expected future costs and
revenues for and management of the Company. Forward-looking
statements are necessarily based on a number of estimates and
assumptions that, while considered reasonable, are subject to known
and unknown risks, uncertainties and other factors which may cause
actual results and future events to differ materially from those
expressed or implied by such forward-looking statements. Such
factors include, but are not limited to: the ability of Company to
meet its deployment targets, access to sufficient mobility units,
usage of mobility units, meeting the requirements of the permits
granted to Company including insurance, general business, economic
and social uncertainties including the impact of COVID-19;
litigation, legislative, environmental and other judicial,
regulatory, political and competitive developments; delay or
failure to receive board, shareholder or regulatory approvals;
those additional risks set out in the Company's public documents
filed on SEDAR at www.sedar.com; and other discussed in this news
release. Accordingly, the forward-looking statements discussed in
this release, may not occur and could differ materially as a result
of these known and unknown risk factors and uncertainties affecting
the companies. Although the Company believes that the assumptions
and factors used in preparing the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed time frames or at all. Except where required by law, the
Company disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events, or otherwise.
Alternative Performance Measures (Non-IFRS
Measures)
Unit economics, including revenue, costs,
cash contribution margin and contribution margin, on a per trip
basis, presented in this news release are alternative performance
measures. Alternative performance measures are furnished to provide
additional information. These non-IFRS performance measures are
included in this news release because the Company believes these
statistics are key performance measures that provide investors,
analysts and other stakeholders with additional information to
understand the Company's operations. These performance measures do
not have a standard meaning within IFRS and, therefore, amounts
presented may not be comparable to similar data presented by other
companies. These performance measures should not be considered in
isolation as a substitute for measures of performance in accordance
with IFRS. The Company notes that numerous factors can impact
revenues and costs of the Company's operations and that historical
results are not necessarily indicative of future
operations.
Unit-based measures on a per trip basis, including
contribution margin and cash contribution margin, are non-IFRS
measures reported by the Company on a per trip ridden basis that
includes all the revenues earned during the period and the direct
fixed and variable costs, including labour, parts and maintenance,
processing and technology fees, insurance, facilities and
depreciation, divided by the total number of successfully completed
rides in the period. Cash contribution margin is calculated by
taking the total revenues earned less direct cash costs for the
same period, while contribution margin also deducts depreciation,
divided by the number of successfully completed rides.
Reader Advisory
Neither the TSX-V nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX-V) accepts responsibility of the adequacy or
accuracy of this release.
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SOURCE Last Mile Holdings Ltd.
