Melbourne-based e-bike subscription provider Lug+Carrie has secured $5 million in bridge funding, as it prepares for expansion into the US and other new markets.
“Lug+Carrie have major plans to expand their business and will be launching in the United States via a soon-to-be-announced joint venture with one of their investment partners.”
Lug+Carrie says the bridge funding, secured from private investors ahead of a planned Series A, will allow the company to “secure more stock to capitalise on local growth opportunities and break into new markets”.
“Lug+Carrie have major plans to expand their business and will be launching in the United States via a soon-to-be-announced joint venture with one of their investment partners,” the premium e-cargo bike subscription business announced in a statement late last month.
The statement says Lug+Carrie will also break into the commercial micrologistics market by expanding their proposition of providing e-cargo bike fleets to companies seeking to replace vans or traditional e-bikes for employees.
Established in 2019 by brothers Ben and Dan Carr, Lug+Carrie was Australia’s first e-bike subscription service and has successfully tapped into families seeking to replace regular car journeys with active transport. In particular, the company has been highly successful in attracting women to cycling, at levels far beyond the general participation rate.
It expanded beyond the Melbourne market earlier this year, establishing an office in Sydney, and is continuing to build upon that momentum.
Dan Carr said the bridge funding, , held in collaboration with investment advisor Ecotone Partners, would help Lug+Carrie meet strong demand in its existing markets, while expanding into new cities. The business introduced its service to Brisbane last month and plans to be operational in Canberra by the end of this year.
“This funding is a reflection of our recent success and growth. We are beyond excited to keep growing and continue to drive change in cities around Australia, who are looking for cheaper, more convenient, more sustainable commutes,” Dan said.
Working with premium brands Tern Bicycles and Bosch e-Bike Systems, Lug+Carrie has positioned itself as a go-to solution for families and businesses looking to replace car and van trips with e-cargo bikes designed specifically to safely carry heavy loads and passengers.
Ecotone Partners co-founder and director Amanda Goodman said investors were drawn to the Lug+Carrie’s “attractive unit economics and impressive month-on-month growth”.
“In just two short years, Lug+Carrie has grown rapidly across Melbourne and Sydney and, at the same time, demonstrated strong operating performance, which resonated with investors seeking to invest beyond the j-curve in growth businesses with profitable operating models.”
Lug+Carrie’s subscription business model removes a major barrier to people getting into riding – avoiding a large initial outlay. Its weekly subscription fees also include all bike servicing, roadside assistance and insurance.
Lug+Carrie is a Gold Sponsor of the 2022 Micromobility Conference & Expo, being held in Sydney on the 25th and 26th November. See this month’s article on its exhibit at the inaugural Micromobility Conference, including its collaboration with local government to introduce people to e-mobility.