French author Voltaire’s renowned adage, “with great power comes great responsibility,” served as the inspiration behind the launch of sustainable urban mobility start-up Eco Way in Dubai by serial investor and Ukrainian entrepreneur Ivan Kroshnyi.
Specialising in last-mile delivery services, Eco Way aims to popularise carbon emissions-free electric delivery bikes in the Emirates, aligning with the UAE government’s target of achieving zero emissions by 2050.
Established in December last year, Eco Way targets an annual production of 30,000 electric bikes for the UAE market. This initiative could potentially decrease carbon emissions in the Emirates by an average of 117,000 tonnes per year, according to the start-up. On average, an electric scooter emits only 0.1 tonne of carbon dioxide annually.
“At the age of 34, as an entrepreneur, my aim is to contribute positively to the world by leading a project like Eco Way, which has the potential to make a lasting impact on numerous lives. It has the potential to bring about significant disruptive changes and benefits for both humanity and the environment in the coming years,” says Mr Kroshnyi.
The global electric two-wheeler market is witnessing substantial growth, according to The National News.
The company has partnered with leading firms offering delivery and courier services, including Talabat, Pizza Hut, Hardee’s, Amazon, Deliveroo, Uplift, KFC, and Emirates Post Group.
Our goal is to complete a successful testing phase with all stakeholders in the market to ensure that we provide precisely the service they require,” explains Mr Kroshnyi.
Currently, Mr Kroshnyi’s business portfolio encompasses 34 companies across 19 countries. His entrepreneurial journey commenced at the age of 16 when he established a company in Ukraine, focusing on selling computer and office equipment. Later, he ventured into trading, starting with the forex market.
In January 2021, he relocated to Dubai, with a business portfolio that included the Gerchik trading company in Ukraine and an investment firm in the Czech Republic.
In Dubai, he co-launched the coffee retail chain Roasters Specialty Coffee House with his partners.
Mr Kroshnyi underscores that the inception of Eco Way was fuelled by a desire to effect real change and create a business model tailored for the UAE market.
“We are highly motivated by the UAE government’s eco-friendly policies. This is an opportune time to be in this space in the region,” he adds.
The UAE is intensifying its efforts to make its transportation sector more environmentally friendly. It has introduced various green initiatives such as the UAE Green Agenda 2015-2030, the National Climate Change Plan of the UAE 2017-2050, and the UAE Air Quality Strategy 2031.
In December, Dubai’s Roads and Transport Authority (RTA) unveiled plans to encourage delivery companies to transition to electric bikes. The new initiative, aimed at reducing carbon emissions in the emirate, also includes the establishment of charging stations across the city.
The RTA also intends to revise licensing and registration requirements to incentivise delivery companies to adopt greener modes of transport.
As a bootstrapped start-up, Eco Way aims to expand its fleet to “several thousand” eco-friendly bikes in the coming years. Currently, Eco Way operates 45 delivery bikes on roads in the UAE.
“We are not yet profitable as our focus is currently on testing and refining our products and operations rather than engaging in commercial activities. We are in the midst of successful testing periods to ensure the viability and effectiveness of our services,” says Mr Kroshnyi.
Eco Way, which is actively seeking external funding opportunities, adopts a cautious approach when collaborating with external investors.
“We approach this matter with careful consideration, prioritising individuals who possess a profound understanding of the industry and share our commitment to advancing environmental initiatives.
“We seek partners who bring more than just financial resources to the table, as their additional assets can inject fresh momentum into the project’s growth trajectory,” explains Mr Kroshnyi.
Eco Way is striving to establish its presence in the UAE’s electric bike market and faces its own set of challenges.
One of its key challenges revolves around customising the design and specifications of existing electric bikes to meet the specific requirements of couriers in the Emirates. While its initial models operated smoothly within the 55kph to 85kph speed range, ensuring the vehicle’s stability at 110kph required additional adjustments.
Eco Way achieved this by extending the wheelbase, introducing metal-coated brake pads to enhance braking performance, and implementing more design iterations to ensure a comfortable highway experience, according to Mr Kroshnyi.
Eco Way has developed three different variants of its delivery bike, with each model equipped with a GPS tracker for real-time tracking.
Under optimal conditions, a gasoline-powered bike would require AED6.65 ($1.8) to cover 100km. In contrast, Eco Way’s electric bikes require AED3.5 for a full charge, enabling them to cover nearly 130km on a single charge.
Eco Way asserts that courier companies can independently swap batteries in less than one minute at its battery swap stations, eliminating the need to wait for charging.
Presently, it has a partnership with a China-based company from which it imports the bikes. However, it plans to manufacture them internally in the future.
The company also intends to swiftly expand into new markets, with its immediate focus on entering India, Indonesia, and Turkey.
Mr Kroshnyi reveals that the company has already commenced groundwork in these new markets and has forged local partnerships to facilitate its expansion.
It also has its sights set on Latin American markets such as Brazil, Chile, and Mexico, as well as European countries like Italy, Spain, and France, where the demand for two-wheeled transport is robust.
“Simultaneously with our expansion efforts, we are actively exploring projects related to four-wheeled transport. Currently, discussions are not public, but we will make announcements soon,” notes Mr Kroshnyi.