Their e-scooter sharing program will launch in cities across the US, Europe and Asia, starting with Austin, Texas.
OjO Electric has scheduled the inaugural launch of the service for the week of January 21 in Austin, Texas. The program is set to be supported by CalAmp through its telematics technology and Premier Wireless Solutions, with the companies supplying real-time location service and other diagnostics.
Through their solutions, the companies are hoping for a collaborative development with local municipalities to ensure OjO e-scooters are safe for riders, as well pedestrians, with speed reduction alerts and fleet management capabilities.
Further, the companies are hoping for a strategic deployment in dense areas or during special events to reduce traffic volume.
“City governments play a huge role in determining who the winners and losers will be in the race for the future of micro-mobility,” Max Smith, CEO of OjO Electric, said in the release. “We’re cooperating with cities to provide a transit solution that reduces urban litter, keeps citizens safe on the roads and reduces traffic congestion.”
The companies noted that although scooter companies are operating in at least 60 cities across the US, telematics-enabled compliance with laws and regulations are required to prevent users from riding on sidewalks.
“Unlike other alternative transportation solutions, OjO’s e-scooter sharing service is evolving mobility-as-a-service by coordinating with local municipalities and leveraging advanced telematics to reinvent the business model,” Michael Burdiek, CEO of CalAmp, said in the release.
Although the initial launch is in Austin, Texas, OjO Electric plans to expand the service across other cities of US, Europe and Asia.
In a report published by Grand View Research in December 2018, it is estimated the global e-scooter market will witness a compound annual growth rate (CAGR) of 7.6 percent between 2018 to 2030. The firm said that the growing need for fuel-efficient vehicles with an increasing concern of carbon and greenhouse emissions will lead to an uptake in the adoption of electric scooters.
Meanwhile, a Research and Markets report from November 2018 highlighted that the trend of micro mobility, including e-scooter sharing, is growing rapidly in countries like China and India. The firm noted that the global on-demand transportation market size is expected to touch US$304.97 billion by 2025 and growing at a CAGR of 19.8 percent between 2018 to 2025.
Following the announcement on Tuesday, shares of CalAmp were up 1.87 percent to close the trading session at US$14.14. The stock has a “Moderate Buy” ranking on TipRanks with an analyst target price of US$20.88 representing a 47.67 percent increase from its current price.
However, the stock has a “Sell” ranking on TradingView with nine verticals against, 10 in neutral and nine in favor.
Image courtesy of OjO Electric.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.