Comodule, the Guardian of Micromobility Connectivity

The Business of Mobility is a series of articles featuring business leaders in sustainable mobility.  

Q&A with Teet Praks (Co-Founder and CEO at Comodule) and Ross Douglas (Founder at Autonomy)  

Comodule, an Estonian startup, was founded in 2014 by Kristjan Maruste, Teet Praks and Heigo Varik. Within a few short years they have become a leading IoT provider for micromobility. Today they help to connect around half-a-million vehicles worldwide to cloud services. Their ambition is to be the ‘android of LEVs’, i.e. the go-to ‘connectivity as a service’ platform for the LEV industry. Their new product, Guardian, offers e-bike and e-scooter manufacturers a simple, cost-effective IoT solution. Comodule employs around 170 people; its headquarters and its factory (where it does all its own production) is in Tallinn; and it has a sales office in Nuremburg.   

Ross: Comodule grew rapidly with the boom in e-scooter sharing, but now it seems you’re shifting gears with new offerings.  

Teet: Tech these days is about building platforms as opposed to simply building products. We are one of the only companies in the world focused on this weird funny niche of connecting micromobility devices. We’ve connected a lot of vehicles for shared fleet operators, but there is now huge potential to deliver IoT for manufacturers.  

Ross: Is this what Guardian is about?

Teet: Guardian is specifically designed for your traditional e-bike manufacturer; those who need a simple, almost ‘off-the-shelf’ system they can easily install as part of their production line.  

Ross: Well hidden of course. 

Teet: Yes, there are three basic configurations for installation, e.g. inside the frame or by the e-motor. 

Ross: And you provide the software? 

Teet: Our offering includes software. Some companies like to have their own consumer-facing app, in which case we give them the development tools to build it. Or we do it for them with our Comodule Companion App. 

Ross: Why should micromobility manufacturers want to install IoT in their vehicles?

Teet: When you have a platform, the opportunities for improved functionality are endless. Look at how the smart phone platform spawned millions of applications. So, IoT will soon become a must-have for LEVs. But for now one of the main value propositions is security and safety of the user, and of the asset, allowing us to bundle the offering with insurance. This offers real value to the consumer; knowing their bike can be traced if it is stolen. If the retrieval company cannot return your bike in 24 hours, then the insurer pays out. 

Ross: Which is much like a tracking device in a motor-vehicle; decreasing risk for the insurer, while lowering premiums for the consumer. 

Teet: Yes, and there’s plenty more uses. Manufacturers can stay close to their customers, pushing helpful services and new functionalities. They’re also gathering data which is invaluable for product development. So, IoT connectivity is becoming really important for marketing and product development. For users, it offers a range of functions, from route navigation through to battery monitoring, safety configuration and performance monitoring. But our offering is more about the manufacturer; think of the savings should they need to run an update on their entire fleet of batteries to prevent damage.

Ross: What’s the demand like for your IoT solutions?

Teet: We’ve seen an uptick in demand for connectivity from a range of different micromobility brands; it has grown three-fold over the past year both in terms of revenue and units shipped. 

Ross: Any ambitions to go beyond LEVs and look at IoT for other forms of mobility?

Teet: No; the future of cities is not cars, it’s micromobility. All trips under … say … 15 or 20 kms should be taken with micromobility. Our mission is very focused in terms of promoting micromobility as the solution for shorter commutes. Besides, we’ve calculated that the business potential—in terms of being the LEV tech platform incumbent—is the prize of a billion Euro revenue within the next ten years. 

Ross: For now, how do you drive profitability? 

Teet: Our revenue model includes a one-time fee for the hardware, and then a recurring subscription. But the model varies from one company to the next depending on their needs. For example, sometimes we will simply have a lump sum payment upfront that includes services for two to five years for the user. However, as the platform grows, the network effect will mean new revenue streams.  

Ross: What is it about Estonia that it produces such exciting tech startups?

Teet: The Skype story back in 2003 was big for Estonia. VC players took notice of us, and it led to funding. I think the attitude here is somewhat different to other places, in that startups are resilient, they’re not just chasing large evaluations, they’re sticking with their concept and building sustainable businesses. 

Ross: How do you see Comodule sustaining itself in the decades to come?

Teet: We are a vertically integrated company with a tight-knit team of bright minds who offer diverse skills and a clear purpose to decarbonise—and decongest—urban mobility. We’re having a lot of fun, but we’re also very focussed on the end-goal; which is to grow from providing IoT, to creating a full tech platform for LEVs including battery technology, motor control, data infrastructure, and software and services.