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In a recent rather unbelievable development, one of the leading electric scooter rental companies from Finland known as Nordic Carbide Oy has shut its operation saying it has filed for bankruptcy. It was commonly recognized as the Move on East and until the year 2004, it was present in many small and medium-sized towns of Finland. This development has shifted the Finnish micromobility scene in a certain direction.
Bankruptcy Details
Originally the Finnish Tax Administration declared bankruptcy, starting the bankruptcy proceeding in April 2024 over €10,000 invoice of unpaid taxes. There is no doubt that during the past year, the company undertook several attempts to reestablish its financial position. Still, unfortunately, Nordic Carbide could not manage the task to avoid the existing problem. Formerly worried about overcapacity, the 5-year-old company from Joensuu had expanded its rental electric scooter services into ten locations, namely Joensuu, Kuopio, Kajaani, Kemi, Rovaniemi, Iisalmi, Siilinjärvi, Varkaus, Sotkamo, Forssa, and Porvoo.
Impact on the Market
The absence of Nordic Carbide in the market is conspicuous especially when viewed from the context of electric scooter rental in Finland where the company operated before it declared bankruptcy. For instance, the company had a fleet of 750 electric scooters; these are now part of assets sold to satisfy the debt. Its implementation should result in a reduction of the number of available rental scooters in the towns in which Move on East has distributed its scooters and made them a dominant form of transport.
Industry Challenges
The recent shutdown of Nordic Carbide Company offers a glimpse into the problems affecting the electric scooter rental businesses. As in many other countries, firms in this sector have also faced problems related to the sustainability of operational finance in Finland. I evaluated the case of Nordic Carbide which can be matched with the recent bankrupt firms like Bird which was also a global firm that had gone through many such financial problems shortly after starting out.
Future of Micromobility in Finland
Currently, after the withdrawal of Nordic Carbide, there is said to be only one more Finnish domestic seller of rental scooters. They pointed to the potential of such consolidation to decrease competition and even cause prices to increase for consumers. At the same time, it has opened new opportunities for the other players, who would be able to widen their market share and develop the wanted services of sustainable urban mobility.
Conclusion
The experience of Nordic Carbide Oy’s bankruptcy can be considered a turning point in the development of the Finnish electric scooter rental business. That said, the remaining players of the company and the future of micromobility in Finland will depend on how it will look like in the near future. For now, the streets of many Finnish towns will not see the black and yellow Move on East scooters that have become rather common means of transportation.
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