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LOOPShare (TSXV:LOOP) launches Scoot-E-Bike on Amazon

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TSX:LOOP
17 September 2020 16:17 (EDT)

Personal transportation company, LOOPShare (LOOP) has released its Scoot-E-Bike onto e-commerce giant Amazon.com.

The company’s electric scooter product made the cut by entering Amazon’s Launchpad program.  The Launchpad program supports entrepreneurs, start-ups, and emerging brands by showcasing their products, and providing other resources and expertise.

While LOOPShare previously launched its own e-commerce website to enable sales of Scoot-E-Bikes, the exposure available through Amazon will be unrivalled. This launch on such a popular online marketplace could not come at a better time for the company.

LOOPShare has had to re-evaluate its business model as a result of the ongoing COVID-19 pandemic. In a corporate update, the company revealed the diverse impacts of the virus, such as changes in consumer habits.

In particular, COVID-19 has reduced the use of public, shared forms of transport, where social distancing is difficult or even impossible. As such, there has been a reduced demand for shared electric scooters, resulting in industry-wide layoffs.

This has also been exacerbated by the practical difficulties associated with sanitising electric scooters after every use. 

However, whilst electric scooter ridesharing is struggling, there has been a substantial increase in demand for individual, personal-use e-bikes like the Scoot-E-Bike. This is likely due to how such products allow customers to remain active whilst also maintaining social distance. 

In response to the double-edged sword that is COVID-19, LOOPShare has initiated a number of measures. One such example, announced in April, was redeploying its scooter fleet to assist delivery services during severe lockdown periods.

Looking ahead, the company intends to increase its focus on Scoot-E-Bike sales for personal use. LOOPShare also plans to reduce its existing fleet of larger electric scooters, which will not be in as much demand under current circumstances. 

LOOPShare (LOOP) is down 4.55 per cent and is trading at C$0.10 per share at 12:54pm EDT.

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