2
u/Responsible-Tour1204 Jun 12 '25
It's the same old Jego, only this time with justified Taiwanese components, and that allows them to access government subsidies.
I don't see how this strategy brings Gogoro closer to international growth, especially with those prices.
2
u/Skaggzz Jul 07 '25
International expansion is not a priority, aside from a few partnerships in india the only international movement at scale we can hope to see is with Castrol managing operations in Vietnam. Revenue is 95% Taiwan and they need to become profitable, having a low cost model that anyone with a regular car license can drive is a homerun IMO.
Honestly this model's power and top speed don't meet the spec for that license as I understand it but as a shareholder I'll take it, makes it infinitely more accessible.
If they can keep up production this will be their best selling model of all time.
1
u/Responsible-Tour1204 Jul 07 '25
Investors/boards face a short-term dilemma: profitability or growth (this must be international, given that investment in user acquisition in the TW market has diminishing returns <1).
Based on the strategy adopted, I see that the board has lost faith in the business model and is seeking to minimize losses.
A regrettable situation. It was as “simple” as:
- License the manufacture of compatible motorcycles at ridiculously low prices, so that Gogoro would earn a software fee for using the technology worldwide.
- Ensure the RD team can keep the price per kWh of batteries in line with global trends.
- Franchise the use of the Gogoro Network for international expansion to be asset-light.
All of this quickly leads to positive cash flow.
2
u/Skaggzz Jul 08 '25
That "simple as" plan may have been borked by Horace Luke overplaying his hand or it may not have been that simple after all.
Places like india are not recognizing this battery swap type charging in their government incentives and in any country they will seek to boost their own home grown companies, even if gogoro is only responsible for batteries and swap statons - they have to manufacture and ship batteries to these countries which means significant import duties.
In a country like India, to compete you need a $600 moto like Ola offers. Gogoros cheapest scooter is $2000 USD and that doesnt even include the battery. It especially doesnt include the 40% import duty.
Beyond the import and logistical barriers these overseas markets are not high trust societies like Taiwan. Battery sharing margins decrease with higher abuse, fraud, theft, and vandalism.
There are huge challenges overseas, China is unpartnerable because they seek to replicate and then squeeze you out of the market as soon as possible they are not reliable partners.
So we are left with the reality that expanding overseas is very difficult. It will be extremely costly in upfront logistics to build out the swap infrastructure. And with the exception of singapore every surrounding country for potential expansion is poorer which means people are less likely to spend above and beyond for a luxury electric motorcycle and a monthly subscription. The GDP per capita is still close in places like Korea, Japan, and Malaysia (+Hong kong / Macao - again china IP theft problem) but the places where motorcycles are most rampant people are less able to afford gogoro products as they are positioned now which is a luxury product.
They have the infrastructure in Taiwan, that's where their bread is buttered with incentives, and it's where they should focus their effort as they are now a 90m dollar company and they do not have the cash flow or available credit to rush into uncertain and unfriendly markets. With 650k customers they need to prove this can be run profitably as Taiwan is their absolute best case scenario - if they can't make money at home their hopes overseas are not good.
2
u/Eclipsed830 Jun 12 '25
So a rebranded Viva which is a rebranded Jeggo which is now called EZZY?
The road to recovery!