Taiwan’s Gogoro on track to become ‘Android of electric scooters

台灣 Gogoro 有望成為“電動機車的安卓系統”

Company’s planned IPO on Nasdaq expected by end of Q1

TAIPEI (Taiwan News) — Taiwanese electric scooter maker and battery infrastructure provider Gogoro is poised to succeed in large untapped markets throughout Asia, according to U.S. investment firm Engine No. 1.

Gogoro’s products directly help avoid carbon emissions that are produced by traditional two-wheelers, while its technology is a key enabler in helping to decarbonize a difficult sector in the transportation industry, Edward Sun, portfolio manager at Engine No. 1, said during a group interview on Wednesday (Feb. 16). Engine No. 1 recently became a private investment in public equity (PIPE) investor in Gogoro last month.

The company has been able to develop a fully integrated solution that provides hardware, software, and a battery swapping infrastructure to consumers, according to Sun. But it was after Gogoro made a strategic shift from making “fantastic hardware” to selling energy through its Gogoro Network that it really caught the eye of Engine No. 1.

The strategic partnerships that Gogoro has been able to enter into with companies like India’s Hero MotoCorp or Chinese vehicle makers Yadea and Dachangjiang have made it into an “Android of electric scooters” by leveraging their capabilities and being agnostic in terms of letting other manufacturers use their technology, Sun added.

Gogoro’s decision to capture subscription revenue through the Gogoro Network was also seen by Engine No. 1 as an important factor leading to its PIPE investment due to the high margin nature of the subscription model compared to focusing on hardware. As Gogoro’s business model shifts toward subscription revenue, “that’s where the real opportunity is,” Sun stressed.

The company has significant growth opportunities in Asia, with the two-wheeler markets in India, China, and Southeast Asia combined around 80 times bigger than the one in Taiwan, Sun said. Success in just one of these new markets “would be a massive victory for the company and the environment,” he added.

The two-wheeler market in the U.S. stands at around 3% of all vehicles, while in India two-wheelers account for 82% of all vehicles and in Indonesia, that figure is even higher at 90%, according to Sun.

As Gogoro continues to expand its international footprint, the company will look to utilize partnerships with “well-established” local manufacturing brands, said Gogoro Chief Financial Officer Bruce Aitken. “They have a retail presence, they have government relationships, they have brand recognition, they have in-house manufacturing and design capability.”

Aitken also pointed out the importance of the company’s partnership with Taiwanese electronics giant Foxconn, which has factories in India, China, and Southeast Asia that Gogoro can utilize as well. The company will also be able to tap into Foxconn’s expertise in supply chain management, localization, and manufacturing.

As for Gogoro’s plans to list on the Nasdaq, Aitken said that the company is currently going through the initial public offering process and that it expects to close the deal at the end of Q1. It will be listed under the symbol GGR.

Gogoro previously said that the funds raised through the IPO would be used to fuel research and development, regional expansion, and global operations.