Grin: Chronicle of a Micro-Mobility Startup

Grin is a micro-mobility company with a business model based on renting electric scooters to move around certain areas. The company is part of Grow Mobility, a holding that merged Grin and Brazilian bike-rental company, Yellow. Due to lockdown measures implemented to prevent COVID-19 contagions, the company has gone through a roller coaster to innovate its business model.

"Due to the COVID-19 crisis, we are observing a transformation in several segments to adapt to the necessary isolation. Despite all the negative impacts of the crisis on health and the economy, some positive consequences can already be seen, such as the looming years of digital transformation in companies," wrote Bruna Motta, Grow Mobility Global Marketing Director. 

According to Forbes Mexico, in early March, Grow Mobility sold a majority stake to Chilean investor Felipe Henríquez related to the e-commerce platform Peixe. "The micro-mobility sector has a great potential and we believe in the experience and high level services of Grow Mobility to lead this movement," told Henríquez to msn dinero. 

A few days later, contxto reported Grin employees were "taking control" of one of Grin's warehouse facilities in Mexico City on the same day (March 25) that the company announced it was suspending its service in Mexico. "We are going through a special situation wherein operations have been halted due to coronavirus in nearly every country and maintaining the same level of operations on the streets is not sustainable," told Grin's Co-Founder, Sergio Romo to contxto.

The situation with employees both at operational and corporate level worsened amid the pandemic. El CEO reported that by the end of May the company and the Attorney's Office for Workers' Defense (PROFEDET) finally reached an agreement with the 130 workers Grin laid off in March.

During that same month, the CEO of Grow Holdings in Mexico resigned leaving global Grow Mobility CFO Eurico Cruvinel in charge. But the employees' situation at the corporate level in Grow Mobility and Grin still remains. According to Forbes México, the last payment employees' received was on April 29. Workers quoted by the same news site affirmed that there was a "substantial" reduction in the company's employer base going from 335 to 220.  Employees explain that after the company notified them there would be no payment in May, no updates had been received.

On May 11, Grin announced it was heading back to Mexico City with a business model that would adapt to the user's needs amid social-distancing measures. The new service consists in a monthly rent of MX$800 (US$35) for an individual electric scoter. "If successful, we will maintain this option, besides regular operations which are still suspended," told Grow Mobility's Public Affairs Director, Beriana Mendoza to el CEO.

The next challenge for Grin will come when its permissions to operate expire in July. The company is authorized to operate 1,750 electric scoters in Mexico City. "We would like to talk with them (Mexico City Minister of Mobility) to extend our permissions given the weeks we have not operated," said Mendoza. Local regulations have costed the company MX$24.5 million (US$1 million) in permits, according to Forbes.