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Brazil’s iFood outlines sustainability initiatives aiming to reduce its carbon footprint

The Brazilian-based pan-Latin American food delivery startup iFood has announced a series of initiatives designed to reduce the company’s environmental impact as consumers push companies to focus more on sustainability.

The program has two main components — one focused on plastic pollution and waste and another aiming to become carbon neutral in its operations by 2025.

Perhaps the most ambitious, and surely the most capital intensive of the company’s waste reduction initiatives is the development of a semi-automated recycling facility in São Paulo.

“We want to transform the entire supply chain for plastic-free packaging in Brazil. By controlling the national supply chain, from production to marketing and logistics, we can offer more competitive pricing for packaging to industries that already exist but do not have a scale of production and demand today,” said Gustavo Vitti, the chief people and sustainability officer at iFood. 

The company has also created an in-app option that allows customers to decline plastic cutlery when they’re getting their food delivered. 

“These initiatives will contribute to reducing the consumption of plastic items, which are often sent without being requested and end up going unused into the garbage bin,” said Vitti. “In the first tests that we did, 90% of consumers used the resource, which resulted in the reduction of tens of thousands of plastic cutlery and shows our consumers’ desire to receive less waste in their homes.”

On the emissions front, the company will work with Moss.Earth, a technology company in the carbon market, which developed the GHG inventory to offset its emissions by buying credits tied to environmental preservation and reforestation projects. 

But the company is also working with Tembici, a provider of electric bikes in Brazil, to move its delivery fleet off of internal combustion powered mopeds or scooters.

“We know that compensation alone is not enough. It is necessary to think of innovative ways to reduce CO2 emissions. In October last year, we launched the iFood Pedal program, in partnership with Tembici, a project developed exclusively for couriers that offers affordable plans for renting electric bikes,” said Vitti. “Currently, more than 2,000 couriers are registered and are sharing 1,000 electric bikes in São Paulo and Rio de Janeiro in addition to the educational aspect of program that we have contemplated. With good adherence indicators, our plan is to gradually expand the project, taking it to other cities and, thus, increase our percentage of clean deliveries.”

The Brazilian electric motorcycle company Voltz Motors is also working with iFood, which ordered 30 electric motorcycles for use by some of its delivery partners. The company hopes to roll out more than 10,000 motorcycles over the next 12 months. 

Coupled with internal-facing initiatives to improve water reuse, deploy renewable energy and develop a green roof at its Osasco headquarters, iFood is hoping to hit sustainability goals that can improve the environment across Brazil and beyond. 

“We know that we have a long way to go, but we trust that together with important partners and this set of initiatives, in addition to others that are under development, it will be possible to reduce plastic generation and CO2 emissions impact on the environment. Our relevance and presence in the lives of Brazilian families further reinforces the importance of these environmental commitments for the planet,” said Vitti.

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Micromobility startup Helbiz to go public via a SPAC, and will expand into ghost kitchens

Micromobility startup Helbiz, which now operates across Europe and the USA, is merging with a special purpose acquisition company (SPAC) to become a publicly listed company, giving it a war chest to potentially roll-up smaller competitors in the space, as well as the resources to expand into “cloud” or “ghost” kitchens as part of a move into food delivery.

Helbiz intends to merge with GreenVision Acquisition Corp. (Nasdaq: GRNV) in the second quarter of 2021. The combined entity will be named Helbiz Inc. and will be listed on the Nasdaq Capital Market under the new ticker symbol, “HLBZ.”

The transaction includes $30 million PIPE anchored by institutional investors and approximately $80 million in net proceeds will be fed into Helbiz’s micromobility and advertising businesses, which have 2.7 million users.

Helbiz says the merged entity will have a valuation of $408 million, and by run Helbiz’s existing management under CEO Salvatore Palella.

Palella said: “Through this transaction, we’re committed to fulfilling our vision in revolutionizing transport by using micromobility to become a seamless last-mile solution.”

He further revealed to me that the company plans to establish “ghost kitchens” in Milan and Washington, DC later this year, with the aim of introducing a five-minute delivery time.

Helbiz has tried to differentiate itself from other players like Lime and Bird by offering e-scooters, e-bicycles and e-mopeds all on one platform.

Key to Helbiz’s offering is an integrated geofencing platform that tends to appeal to city authorities who don’t want scooters left in random places, as well as a swappable battery that enables easier charging of the devices. Its subscription service allows users to take unlimited 30-minute trips on its e-bikes and e-scooters every month.

In Europe the company currently operates a fleet of e-scooters and e-bicycles in Milan, Turin, Verona, Rome, Madrid and Belgrade, and in the U.S. it operates in Washington, DC, Alexandria, Arlington and Miami.

David Fu, chairman, and CEO of GreenVision, commented: “Helbiz has distinguished itself as the only company to offer e-scooters, e-bicycles, and e-mopeds all on one user-friendly platform… Helbiz has a proven and capital-light business model that combines hardware, software, and services with extensive customer relationships.”

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E-bike subscription service Dance closes $17.7M Series A, led by HV Holtzbrinck Ventures

Three months on since the former founders of SoundCloud launched their e-bike subscription service, Dance today is announcing the close of a $17.7 million (€15 million) Series A funding round led by one of the larger European VCs, HV Holtzbrinck Ventures.

Founded by Eric Quidenus-Wahlforss (ex-SoundCloud), Alexander Ljung (still at SoundCloud as chairman) and Christian Springub (ex-Jimdo), Dance has ambitions to offer its all-inclusive service subscription package into expanded markets across Europe and eventually the U.S. Dance is currently operating the invite-only pilot of its e-bike subscription in Berlin, with plans for a broader launch, expanded accessibility and availability and new cities next year.

Rainer Märkle, general partner at HV Holtzbrinck Ventures, said in a statement: “The mobility market is seeing a huge shift towards bikes, strongly fueled by the paradigm shift of vehicles going electric. Unfortunately, the majority of e-bikes on the market today have some combination of poor design, high upfront costs, and cumbersome maintenance. We analyzed the overall mobility market, evaluated all means of transport, and crunched the numbers on all types of business models for a few years before we found what we were looking for. Dance is by the far the most viable future of biking, bridging the gap between e-bike ownership and more ‘joyful’ accessibility to go places.”

E-bikes tend to be notoriously expensive to purchase and a hassle to repair. That said, startups like VanMoof and Cowboy have brought an Apple -esque business model to the market, which is fast bringing the cost of full ownership down.

Most commuters are put off cycling the average 10 kilometers (6.2 miles) commute but e-bikes make this distance a breeze. Dance sits in that half-way house between owning an expensive bike and having to hunt down a rentable e-bike or electric scooter close to your location.

Additionally, the COVID-19 pandemic has brought individual, socially distanced transport into sharp relief. U.K. sales of e-bikes have boomed, seeing a 230% surge in demand over the summer. This has happened at the same time as EU governments have put in more than 2300 km of bike lanes, with the U.K. alone pledging £250 million in investment.

Quidenus-Wahlforss said the startup has been “inundated with positive responses from around the world since we announced our invite-only pilot program.”

Dance’s subscription model includes a fully assembled e-bike delivered to a subscriber’s door within 24 hours. This comes with maintenance, theft replacement insurance, a dedicated smartphone app, concierge services, GPS location tracking and unlocking capabilities.

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Local governments are forcing the scooter industry to grow up fast

Gone are the days when tech companies can deploy their services in cities without any regard for rules and regulations. Before the rise of electric scooters, cities had already become hip to tech’s status quo (thanks to the likes of Uber and Lyft) and were ready to regulate. We explored some of this in “The uncertain future of shared scooters,” but since then, new challenges have emerged for scooter startups.

And for scooter startups, city regulations can make or break their businesses across nearly every aspect of operations, especially two major ones: ridership growth and ability to attract investor dollars. From issuing permits to determining how many scooters any one company can operate at any one time to enforcing low-income plans and impacting product roadmaps, the ball is really in the city’s court.

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