SoCal-based EV startup Canoo continues to claw its way out of the pit of near bankruptcy, announcing yet another large commitment of orders for its all-electric Lifestyle Delivery Vehicle (LDV) and Lifestyle Vehicle (LV). Fellow Los Angeles local Zeeba has committed to purchase nearly 5,500 EVs from Canoo, 3,000 of which are part of an initial binding agreement.
Canoo ($GOEV) is an LA-based EV startup founded in 2017 that has taken a few spins on the rollercoaster ride of financial ups and downs that EV startup world often delves out. Although it originally debuted several different EVs to come, Canoo’s immediate focused has honed in on the production of its Lifestyle Delivery Vehicle.
Canoo’s Q1 2022 report, however, posted a $125M net loss and “substantial doubt” the startup could continue. That said, the startup worked to lean out its business, re-adjusting its production strategy while continuing to test its LDV for road certification as it moves its toward scaled production.
Since then, a modified version of the LDV was chosen to transport future astronauts on the Artemis Missions to the launch pad under a contract recently awarded by NASA, and Walmart signed a contract in July to order up to 10,000 LDVs beginning with prioritized deliveries in Q1 of 2023.
Still, Canoo’s Q2 report included another large net loss, leaving the startup with even less financial runway to work with. With over $1 billion is its sales pipeline, however, Canoo continues to fight on with the resources it has remaining, and just may pull it off.
Today, the company has announced its latest customer is Zeeba, who has committed to a slew of EV orders for Canoo’s LDV and LV electric vehicles.
Zeeba orders at least 3,000 Canoo EVs through 2024
Canoo shared details of its latest purchase agreement in a press release today, sharing that Los Angeles-based fleet lease provider Zeeba has signed an agreement to purchase 5,450 EVs.
The binding-terms of the agreement includes 3,000 units committed to be built in the US by Canoo through 2024. Canoo chairman and CEO Tony Aquila spoke to the latest order and what it means for the future of the startup moving forward (spoiler alert: it’s a tad vague for now):
We have a large committed, growing order book, are finalizing our multi-year allocations for 2023 customer deliveries and will share our manufacturing plan with the broader market shortly. This order is another milestone validating our product and strategy. Small & medium sized business (SMB) are the backbone of our communities, employing about half of all working Americans1 and they are Zeeba’s target customers. We put technology first and combined class leading ergonomics, a small vehicle footprint-to-cargo ratio and platform versatility while achieving a lower carbon footprint and higher return on investment for the operator, all of which will help SMBs compete.
Zeeba is working to electrify at least 50% of its fleet vehicles by Q1 of 2024 and hopes its orders from Canoo can help. The fleet solutions company intends to offer Canoo’s LDV and LV EVs to small and medium businesses to alleviate stress brought on by purchasing and managing mobility vehicles – especially EVs which require charging infrastructure.
Thanks to the modularity of Canoo’s designs, Zeeba intends to customize the configurations of the EVs to meet the preferences of its clients, who will use them for everything from last-mile logistics, to ride-hailing, mobile shops, and food deliveries. Zeeba can then repurpose those same vehicles with new configurations when they are returned. Rinse and repeat. Zeeba’s chief strategy officer, Mike Paletz, elaborated:
The LDV & LV are going to be a game changer for businesses we serve. Canoo technology will allow our SMB customers to effectively and efficiently operate their businesses while reducing their carbon footprint. Zeeba has very ambitious electrification goals and we want to achieve leadership in fleet technology.
With the third quarter recently ending, we are sure to hear more about Canoo’s current status, including Zeeba’s orders, initial EV deliveries, and beyond. Check back with Electrek soon.
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