The Poppy car-sharing network, a subsidiary of the D’Ieteren group, is coming to Liège. Its overall fleet has increased from 1,000 to 3,000 vehicles.
Poppy, the start-up that develops mobility in the broad sense with shared cars and, depending on the city, bicycles and scooters, presses the accelerator. After Antwerp, Brussels, Ghent, Lier, Mechelen and the airports of Zaventem and Charleroi, she landed in Liège with 80 vehicles, including six utilities.
“These vehicles are an additional link in the chain of more flexible mobility that is accessible to everyone,” says Gilles Foret, Alderman for Mobility in Liège. However, the fleet seems limited (80 vehicles vs nearly 500 in Antwerp or Brussels). “It depends on the agreements concluded with the authorities”, specifies Sylvain Niset, CEO of Poppy. Antwerp and Brussels do not impose caps, unlike other citiesdepending on their goals.
Poppy has announced that it will triple its total fleet, from 1,000 to 3,000 vehicles. This investment is the consequence of the good results of the start-up. “Last year we had tripled the turnover on a monthly basis”, continues Sylvain Niset. The company has “become positive to Ebitda, it generates cash”.
Economies of scale
Admittedly, it does not yet generate net profitability since Ebitda is profitability before depreciation, taxes and interest. But it is a model viability indicator. The increase in the number of automobiles is intended to generate economies of scale on platform costs.
How does this service work? Customers use an app to locate, reserve and then open the chosen car. When they arrive at their destination, they park the vehicle in one of the areas negotiated with the municipalities where it is permitted (free floating) and complete the trip on the app. Billing is calculated per minute.
“How far can we go? We do not know”
Poppy’s main competitor, Cambio, is present in dozens of localities. Its model is different: the rental is paid by the hour and the cars must be picked up and returned to fixed stations. THE free floating à la Poppy is more practical but is especially suitable for large cities. The encouraging results are now pushing the company to target smaller towns.
Poppy proceeds by trial and error. “How far can we go? We don’t know,” admits Sylvain Niset. The model allows you to play on a certain flexibility by modifying the areas covered, by adding or removing vehicles. Moreover, D’Ieteren wishes not be limited to large cities because the group is active everywhere in Belgium.
