Helbiz announces discontinuation of operations in non-profitable markets

Helbiz announced that it will be discontinuing operations in non-profitable or cash-positive markets by spring 2023. The decision was reached following a comprehensive review of the Company’s operations and a determination that certain markets do not possess the necessary conditions for profitability in the near term. The review revealed that these markets are characterized by a lack of robust regulatory frameworks, high levels of competition, an oversupply of vehicles, and overcrowded streets – all of which impede the Company’s ability to achieve profitable margins. Helbiz has already initiated the process of exiting these markets on a global level, with 90% of exits already completed. The current focus is on optimizing operations in more favorable operating environments and markets as an integral part of Helbiz’s main objective in achieving profitability. "We have conducted a thorough review of our operations and have determined that these markets do not have the necessary conditions to achieve profitability in the short term. We will be shifting vehicles from our under-performing markets to those with healthy margins and near-term growth prospects," said Salvatore Palella, CEO of Helbiz.