Last Mile Holdings’ Gotcha Mobility Drives Industry-Leading Profitable Unit
Last Mile Holdings Ltd., a leading micro-mobility company with the broadest product suite in the industry, 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 peers. Excluding depreciation, cash contribution per ride of $3.70 represents a 39% contribution margin.
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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, respectively.
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“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.”
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