Veo shared micromobility firm launches retail seated scooter
Veo, the company that secured New York City’s e-scooter permit, will venture into retail by selling its Cosmo X seated, pedal-less scooter in the United States. First, the company will conduct a small pilot and limit its first batch to 1,000 scooters in 2023. While e-bikes are in high demand in the United States, the business case for them can be tricky, as seen by the failure of Bird’s attempt to sell its e-bike and VanMoof’s recent bankruptcy despite the popularity of its bikes. Therefore, Veo plans to proceed slowly, carefully evaluate customer interest, and move forward accordingly.
According to Candice Xie, co-founder and CEO of Veo, the timing and choice of vehicle for their direct-to-consumer launch made sense due to the millions of users already on their platform and the popularity of their existing vehicle types. The vehicle they are launching is one of their most popular in all markets.
Veo offers a shared transportation service that spans over 50 cities in the United States. The service includes various transportation options like e-bikes, pedal bikes, and electric kick scooters to suit different preferences.
According to Xie, customers have been interested in purchasing the Cosmo X, which has given her and other executives at the company the confidence to establish a new business unit. Since the Cosmo X is essentially the same scooter used for shared transportation, Xie believes that Veo will not face the same issues that Bird did with its retail bike. Xie noted that Bird produced an inferior imitation of VanMoof’s product, but people quickly realized that there were significant differences in quality.
One of the reasons for VanMoof’s mishaps can be attributed to quality concerns. The company refrained from using readily available parts, which made it challenging for customers to obtain timely repairs and servicing when parts began to malfunction. The situation was further aggravated by VanMoof’s below-par after-sales service and inefficient logistics network.
As per Xie, Veo has established service and distribution centers nationwide and plans to expand its network further. This strategic move will ensure that their scooters evade the logistical and supply chain troubles that plagued VanMoof. Xie is confident that Veo’s scooters, which have already demonstrated their sturdiness on the streets, will necessitate lesser maintenance than VanMoof bikes.
Xie mentioned that Veo intends to establish a long-term business and is willing to be patient. In the future, Veo may offer other types of products. Veo will release approximately 1,000 scooters this year to test the business case. The company wants to take its time to understand which areas require additional investment to ensure a successful D2C business and which markets have the potential for expansion before committing to significant capital expenditures. If this year is successful, Veo plans to sell tens of thousands of scooters next year.
The Cosmo X by Veo is a high-end e-scooter with a starting price of $3,499.
Xie’s statement confirms that the X model requires three months for delivery. The Cosmo S vendor version is a cost-effective alternative that can be shipped earlier, starting in September, for $2,899. Pre-orders are eligible for a complimentary detachable basket and helmet.
The Cosmo X and shared Cosmo S differ primarily in the former’s customizable options. Users can select from vibrant body colors, such as Malibu pink, cosmic blue, and Moondust, and various rim color choices. Moreover, when turned on, the scooter will welcome the owner by name, allowing for personalized interaction. For example, you can set the scooter to say, “Hello, Obi-Wan. Are you ready for liftoff?” Below are some of the Cosmo X’s specifications:
- Can reach speeds of 17 miles per hour
- Over 45 miles of range
- A 500W motor — excellent for hills
- Waterproof swappable battery
- It takes 5-6 hours to charge
- “Mountain bike-inspired suspension” with coil spring front fork
- 18-inch pneumatic tires
- Aluminum alloy frame
- Front and rear mechanical drum brakes in a waterproof casing
At the time of release, riders can utilize a separate portal within the Veo app to access their scooters, also used for shared rides.