The Vmoto Ltd (ASX: VMT) share price is surging higher today after the company announced it has secured a significant order from Greenmo Group.
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Based in Europe, Greenmo Group provides electric vehicles to rent for food and parcel delivery companies. The business has seen explosive growth in the environmentally friendly vehicle market.
During early afternoon trade, the Vmoto share price is up 15.8% to 47.5 cents.
What’s pushing the Vmoto share price higher?
Vmoto advised it has received an order of 5,904 electric scooters to manufacture for Greenmo. The contract, valued at $13 million, reflects the growing demand for environmentally friendly transport across Europe, which Greenmo aims to capture.
The rollout of the electric scooters is expected to complement Greenmo’s subsidiary, Go Sharing, which is a company that offers electric scooters rental services through its ride-sharing mobile application. The app allows users to locate, ride and return electric scooters to a number of locations.
The delivery of all 5,904 units is due to be completed within the first quarter of the financial year. The purchase represents a repeat order from Greenmo and Vmoto anticipates additional contracts will flow throughout FY21.
The company highlighted that it is progressing its international B2B sales strategy, which it considers as a large market opportunity. Vmoto revealed that its currently in negotiations with several existing and potential B2B customers to supply samples and complete trials.
Because of its zero carbon emissions, the company highlights that its strategy is supported by a number of initiatives from European governments that aim to boost electric vehicle adoption. It also noted that COVID-19 has heavily impacted public transportation, and sees its services as a way forward, post-pandemic.
Vmoto managing director Mr Charles Chen welcomed the deal, saying:
We are very delighted to have secured this further significant order of 5,904 units from Greenmo Group. Greenmo Group, including GO Sharing, continues to grow from strength to strength in the Netherlands and beyond, having entered Turkey, Belgium, Germany and Austria as part of their aggressive global expansion plans.
Greenmo Group has been Vmoto’s partner for more than five years and we are excited to participate in Greenmo Group’s significant growth as their preferred electric scooter supplier for their ride-share and rental delivery offerings. We look forward to growing hand in hand together with Greenmo Group and expect to receive further significant orders from Greenmo in 2021 and beyond.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.