Sustainable Business Approach- Cooltra

This past week, my classmates and I had the opportunity to meet with two locally based companies here in Barcelona. Our first meeting was with Cooltra, a company focused on offering scooters to people throughout European cities. The scooters help create a more sustainable mode of transportation and greater efficiency for individuals who do not have enough time to take the bus or metro. My classmates and I were very fortunate to learn about the company from the CEO, Timo Buetefisch. This article will provide information on the sustainable approaches taken by Cooltra, the current market trends in the transportation industry, and similar businesses in the United States of America.

Cooltra was founded in 2006 with a focus on providing electric scooters to a target market of young adults. Cooltra is currently established in Spain, Portugal, France, and Italy. Every country, except France, has Cooltra scooters in more than one city. Cooltra offers both electric and petrol scooters, which can be used for business-to-consumer or business-to-business purposes. The scooters can be rented by the day, month, or minute/hour, offering high flexibility to consumers, which is a positive aspect of their business plan. Overall, the company is continually making conscious and proper decisions on expanding and maintaining a positive outlook. As a master’s student within Cooltra’s target market, I would be highly inclined to use this company’s products.

Cooltra is committed to sustainability through various initiatives aligned with the Sustainable Development Goals (SDGs). By utilizing electric vehicles, Cooltra enhances air quality, contributing to Good Health and Well-being. The company fosters Decent Work and Economic Growth by offering stable employment contracts, thereby supporting local communities. Innovation drives Cooltra’s services, reflecting their focus on Industries, Innovation, and Infrastructure. Their electric mobility solutions promote Sustainable Cities and Communities, while responsible consumption is encouraged through flexible rental options, aligning with Responsible Consumption and Production. Cooltra’s 100% electric fleet underscores their dedication to Climate Action, and partnerships with organizations combating forest degradation highlight their commitment to Life on Land. The ESI Model—focusing on Environment, Safety, and Inclusivity—guides Cooltra’s corporate social responsibility efforts, aiming for carbon neutrality by 2027, ensuring rider and data safety, and promoting inclusivity across all demographics.

The market of sustainable efforts is analyzed using data provided by Euromonitor. By analyzing the megatrends in Spain, there is a significant correlation between the utilization of Cooltra and the lifestyle of consumers. Cooltra’s target market seeks three main things in life: saving time, simplifying life, and resolving life under pressure. Numerically, 47% of Gen Z and 37% of Millennials feel constant pressure. Meanwhile, 59% of all respondents want to simplify their lives, and 45% of Millennials and 43% of Gen Z are willing to spend money to save time. A quick resolution is to spend money on scooters to arrive at destinations faster, without worrying about the complexity of ownership and the pressure of owning important objects. In contrast, the high usage of metro systems in Spain, particularly in Madrid and Barcelona, is due to their high efficiency and large populations. Spain’s road passenger transport industry grew by 10.6%, making it the sixth largest regionally in terms of turnover value. Cooltra is planning future expansion with a partnership with Felyx, which will help push the product towards 30 cities in nine European countries with an additional 28,000 vehicles. Felyx and Cooltra will now operate with more than 3.5 million users and over 50% market share. The rental scooter market has taken off for Cooltra, and the progression of market growth will compete with European lifestyles and city transit systems.

Veo is a company in the United States that is slowly developing certain markets. Most of the vehicle fleet is in warm locations and on college campuses. Similar to Cooltra, Veo is marketing towards young people. The issue with the Veo fleet is that the electric scooters and small bikes are not as sturdy as European electric scooters. The company focuses heavily on safety because these modes of transportation can be highly dangerous. Veo is making significant efforts to ensure consumer safety. My outlook is that the scooter industry needs to move towards more sustainable and concrete efforts. Individuals would be willing to use safe, electric, and sustainable products. The American market may never be an ideal place to implement ride-sharing electric scooter bikes.