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Joko almost died during launch. It's now a lifeline and lucrative business for e-bike couriers.

TechBrunchBy TechBrunchNovember 30, 20248 Mins Read
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On a morning in September 2024, two Jonathan Cohens, one from the Rockaways, Queens, the other from London, stand in an empty 15,000-square-foot parking lot near New York City's Hudson Yards. was. As they walked along the chipped yellow line, they explained how the space will help Joco, a shared e-bike startup for delivery workers, continue to expand.

“We're going to get rid of all our cars and focus completely on electric two-wheelers, three-wheelers, four-wheelers and small electric vehicles for charging,” said Cohen, New York, Joko's chief growth officer. he told TechCrunch with a big smile. .

They roamed the cavernous grounds, interrupting each other like a married couple telling a story to a friend, setting the stage for a place that was as much about community as it was about practicality. In the back was a mechanic's workshop and several rooms with charging cabinets. Riders can change the electric bike's battery, docking station, and two bathrooms.

Mr. Cohen, Joco's CEO in London, pointed to an area not far from the reception designated for Joco's concierge service, where delivery drivers can check in, pick up supplies and take a break from the chaos of the city. .

“Think of it like a gas station.” [for delivery riders]” added Mr. Cohen (New York). “We want people to use it as a place to relax and take a break.”

The concept of providing gig workers with a pit stop (a place to use the restroom, charge their phones, or even pray) isn't new to Joco, which has already partnered with Grubhub in two locations, Alphabet City and Midtown. West providing leverage services. And even after nearly going out of business several times in the first year, this kind of consideration for customers is a big reason why Joco continues to exist today.

Joco co-founders Jonathan Cohen (CEO) and Jonathan A. Cohen (CGO) stand in what will be an electric bike hub and warehouse in New York City in September 2024. Image credit: Rebecca Bellan

Joco (named after its two co-founders, who met at Columbia Business School in 2017) will launch in New York in 2021 with a mission to compete with Lyft-owned Citi Bike with docked, shared electric bikes. It was launched in The Cohens believed that by installing Jocko's docking station on private property, they could avoid Citi Bike territory and city regulations. they were wrong. The New York City Department of Transportation quickly sued Jocko for operating a bike share without prior permission from the agency, forcing the startup to pivot from consumer ride-hailing to last-mile delivery. Ta.

Currently, Joco serves both gig workers who rent e-bikes on a daily or weekly basis, and corporate customers who order dedicated vehicles from the startup. Joco has approximately 18 corporate customers across New York, Chicago and Miami, including Grubhub, Leaf, Fresh Direct and other major logistics companies. Joco also offers fleet management technology, service and maintenance, docking stations, and even battery charging cabinets as part of its B2B package.

Jocko said the cabinets were approved by the FDNY, especially in New York City, where battery fires due to unsafe charging methods are rampant and many buildings have banned the use of e-bikes and e-scooters. This is an area of ​​continued growth for the startup. Joco has sold about 100 battery cabinets to residential buildings owned by affiliates across the country and to last-mile logistics companies such as Travis Kalanick's Cloud Kitchens, and plans to expand internationally.

From giving up to expanding cash flow

Gig delivery drivers can rent e-bikes, take a break, charge their phones, and use the restroom at this Joco and Grubhub concierge in New York City. Image credit: Rebecca Bellan

The Coens believe DOT's opposition was a “hidden boon” that helped them make money, even though they had only raised $7.5 million in venture capital funding, and may be making money on EBITDA. They claim that they are making a “net, net, net profit” based on their “real salary.” While other similar Hardware-as-a-Service startups have raised millions or even billions of dollars in venture capital, many similarly The company went bankrupt due to the nature of its business, which was low.

“It forces us to focus,” Cohen told TechCrunch. “This is one of the lessons we inadvertently understood sooner than we should have. Another lesson we learned is to really pay attention to the customer. Just this Sunday, there was a guy in Queens whose bike broke down, so I rented a car there, picked up his bike, and took him back to another station in Manhattan.

“Customers who see it are shocked and tell other people,” he continued. “We do unusual things for our customers, things they don't expect.'' Mr. Cohen (London) said that while some of these decisions are not necessarily “economically rational'' on the surface, He pointed out that it creates customer loyalty.

A concierge service is an example of a service that involves multiple staff members on hand to attend to the needs of the delivery person. Joco is also distributing free bicycle helmets, visibility vests, hand warmers, and, through a partnership with Grubhub, free temperature-controlled backpacks.

There are other startups that offer e-bike rentals to delivery companies. Whiz and Zoomo come to mind, which offer long-term rentals and require the delivery person to store the bike, lock it, and charge the battery. With Joco, gig workers have access to high-quality e-bikes at an affordable price and don't have to worry about locking their e-bikes or carrying them up stairs. Riders can use the app to lock and unlock their bikes. This is a small but effective convenience. We deliver all day long.

Mr. Cohen (London) said, “Because we use the same vehicle for multiple people and deliver 24 hours a day, we make much more money per bike than other companies who rent it for a month and take it home.'' ” he said. Keep in mind that new Segway bikes have a life cycle of 3 to 5 years.

There also seems to be a quiet community among Joco riders. Employees who pick up bikes from Alphabet City concierges can be seen chatting and fist-bumping, and they often wave and greet other Joco riders when they catch them on the street.

Joco's commitment to its customers is evident in its growth. That empty parking lot? Two months later, it's now nearly open for business, with 1,000 new Segway electric bikes lined up and another 1,000 on the way. The location is one of nearly 50 docking stations of all sizes accessible to delivery companies across the city. And the Cohens argue that's still not enough to meet demand for their services.

“All of our vehicles are used every day,” said Cohen, New York, noting that Joco has “spent $0 on marketing” since its launch. He says his team has been able to grow the company's gig workforce by double digits each month, primarily through word of mouth.

The Joco crew stands in front of their four-wheel electric cargo bike and battery charging cabinet. Left to right: Jonny Cohen (Co-Founder, CGO/Chief Growth Officer), Guman Gezici (Head of Operations, from Getir), Jonny Cohen (Co-Founder, CEO), Julia Rindenow (Partnerships and Marketing Associate) Images Credit: Jocko

This is one of the Coens' pieces of advice for early-stage founders. Don't throw money into marketing too early in an attempt to get attention and raise money. Keep your head down and focus on the execution. That's how the pair say they got to where they are today, where cash flow, rather than venture capital, funds expansion. “Founder mode” is essential for them. Because it means you're always ready to roll up your sleeves, whether it's Thanksgiving, Christmas, or even 3 a.m.

“It was an all-nighter, just like when I switched from my old Acton bike to a Segway bike,” said Cohen, New York.

Joco still runs a lean ship with about seven people on its corporate team. The company has approximately 50 total employees across maintenance, call center, operations, warehousing, software and supply chain. And many of those teams are outsourced to employees outside the United States, which the co-founders say saves them money as they work to grow the business. The company also employs a small number of employees, such as a CFO. This is a good strategy for early-stage startups that want to bring in experienced executives on a part-time basis.

That financial prudence will help Joko scale up in 2025. The founders said their near-term growth plans come from cash on hand and potentially some debt, but they do not intend to raise any more equity capital.

Next year's goal is to increase the number of Jocko gig workers from the current 3,000 to 10,000 by the end of 2025 and build new docking stations in Brooklyn and Queens. Joco also hopes to double its B2B footprint over the next 13 months by installing 1,000 battery charging cabinets in its buildings and adding more four-wheel cargo bikes to its lineup.

And Joko has some tailwinds, especially with New York City's congestion pricing plan set to go into effect in January.

“There will be more opportunities to get garage space at a better price,” said Mr. Cohen (New York). “You don’t need two-ton vehicles for short-distance delivery commutes, so the more we can do to build out the infrastructure and technology, the better it will be for riders.”



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