ELMO Rent is expanding into the taxi services market
ELMO Rent AS, has signed a memorandum of intentions to acquire Elektritakso OÜ. It will enable ELMO Rent to expand the range of electric car services beyond short-term leasing. Final sales contract is planned to sign in coming weeks.
“Environmentally friendly transport solutions are growing trend, and the purchase of Elektritakso allows us to increase the range of services offered by electric vehicles, making them more convenient and attractive. Soon our customer will be able to order a suitable means of transport via only one app – anything from an electric bike to an electric taxi,” described Enn Laansoo, Jr., founder and chairman of the supervisory board of ELMO Rent. “Our comprehensive range of electric vehicle services enables us to flexibly respond to market changes, and is supported by the final stage of development of our remote control vehicle technology. The transaction will result in significant strengthening of our position in the electric transport sector and will also increase the value of our shares.”
Following the completion of the transaction, the existing shareholders of Elektritakso will be involved as new shareholders of the listed company, which will ensure a smooth merger and expansion of the best competences in Tartu, Pärnu and Tallinn as well as contribute to the growth of electric taxi business in neighboring countries.
“We have been cooperating with Elektritakso in Tallinn on a daily basis in 2018, where we shared resources related to the car fleet. Which means that we know their team and the nature of their business well. Launching an electric taxi service in Tallinn together with Elektritakso will have great synergy and far less risk, than doing it ourselves,” added Laansoo.
“Together we can offer a wider range of services to our end customers, while significantly optimizing costs. We will also be able to enter foreign markets quickly as a listed company,” said Ermo Kontson, the founder and owner of Elektritakso.
By expanding into taxi business ELMO Rent estimates an increase in turnover of at least 25%. The expected turnover is therefore approximately 3,4 million euros in the year 2022, with a 20x increase in the number of rides.
Elektritakso OÜ was founded in 2012 and was the fastest growing taxi company in Estonia until Bolt and Uber entered the market. Today Elektritakso is focused on providing taxi services in Tartu and Pärnu, serving their clients over 300 000 rides a year.
Additional questions about the planned transaction can be asked on ELMO Rent’s Facebook page or by writing to firstname.lastname@example.org