Evaluating only ROAM Electric Motorcycles’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
FUNDING
CRISIS
SHUTDOWN
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Documented cause
ROAM (formerly Opibus) converted traditional motorcycle taxis (boda-bodas) to electric in Kenya, building battery swap stations where riders could exchange depleted batteries for charged ones. The concept was sound — Kenya has 1.5M boda-bodas and petrol costs were high. But battery swap station infrastructure required enormous capex before network effects kicked in. Riders wanted swap stations every 30km; each station cost $50,000 to build. The company raised $24M but the math on station density vs rider adoption created a chicken-and-egg trap that capital alone could not solve.
Lesson
“Battery swap networks must partner with infrastructure funds or utilities from day one — VC alone cannot finance grid-density requirements.”