Donkey Republic is awarded long term contract in Hannover and expands foothold in the strategic German growth market
Company Announcement no. 25-2023
*Contains insider information*
Donkey Republic is awarded a contract by the GVH – Großraum-Verkehr Hannover GmbH to operate a bike share system with a minimum total contract value of approx. 8.8M DKK (1.2M EUR) for a 3 year duration with the potential of further extensions of 2 year periods.
The minimum total contract value is 8.8M DKK (1.2M EUR) consisting of 1,000 pedal bikes. In addition, Donkey Republic will collect the rider revenue, potential proceeds from sponsoring deals and other corporate partners.
The contract is a result of executing the company’s B2G (business-to-government) driven strategy to secure sustainable long term contracts that support the pursuit of profitable growth. This contract is of strategic importance as Germany is a core focus market and significant future growth driver for the company. With the Hannover contract, Donkey Republic expands its presence in Germany further south by adding to its portfolio of current operations in the Kiel Region and Schleswig/Flensburg in the Northern part of Germany.
CEO, Niels Henrik Rasmussen comments “We are very pleased to have been awarded this contract which is strategically important as it increases our foothold in Germany - a market we see a lot of potential in. We look forward to becoming a city partner to help improve urban and green living for citizens in Hannover.”
Contract highlights
- Duration: 3 year minimum + 2 year extension(s)
- Minimum total contract value: 8.8M DKK (1.2M EUR)
- Launch: Q2 2024
- Contracting authority: GVH – Großraum-Verkehr Hannover GmbH
The contract does not impact guidance for 2023 or 2024.