Bolloré Group Awarded €66 Million Compensation for Autolib’ Failure
Paris, France – The Bolloré Group has been awarded €66 million in compensation by the Paris metropolitan municipalities that used the Autolib’ car-sharing service, the Paris Administrative Court of Appeals ruled on Friday.
Autolib’, launched in 2011, was initially projected to generate €56 million in annual profits with thousands of small electric "Bluecars" deployed throughout the Île-de-France region. However, Bolloré swiftly announced minor losses, which later escalated to significant deficits despite amassing 150,000 subscribers.
In 2018, Autolib’ notified the mixed syndicate Autolib Vélib Métropole (SAVM) of the concession’s lack of economic viability and requested €233.7 million in financial compensation. SAVM refused and terminated the contract on June 25, 2018.
Bolloré Group subsequently challenged the decision in court, seeking €235 million in damages, but their claim was dismissed in 2023 in the first instance.
On Friday, the Court of Appeal sided with Bolloré Group, confirming the applicability of clauses in the Autolib’ contract that required SAVM to cover operating losses exceeding €60 million.
The Court noted that "Autolib’s failures did not cause the concession’s lack of economic viability, which was primarily due to an excessively optimistic revenue forecast at its inception." However, it also found that "both Autolib’ and SAVM were slow to react to the difficulties faced by the concession."
The Court ruled that Autolib’ should have notified SAVM of the car-sharing service’s economic deficit by "no later than November 30, 2013," which would have allowed for the concession to be terminated "as early as December 31, 2013."
Consequently, the Court determined that Autolib’ could claim compensation for the accumulated deficit exceeding €60 million until the end of 2013 only. SAVM is therefore obligated to pay €44.9 million in compensation for these losses, approximately €13 million for vehicle charging stations, and €8.2 million for termination costs incurred by Autolib’.
Analysis
The ruling represents a major legal victory for Bolloré Group, which has long argued that Autolib’s failure was not its fault but rather due to unrealistic expectations and poor management by SAVM.
The Court’s decision also sheds light on the challenges faced by shared mobility providers in meeting financial targets and managing operating costs while providing affordable and convenient services to the public.
The case also highlights the importance of clear contractual language and the need for both parties to promptly address emerging problems to mitigate potential losses.
Impact
The compensation awarded to Bolloré Group is expected to have a significant impact on the company’s finances and may encourage other shared mobility providers to seek legal recourse in similar situations.
It is also likely to raise questions about the future of Autolib’ and other car-sharing services in the Île-de-France region, as municipalities may become more hesitant to invest in such ventures due to potential financial risks.
Overall, the ruling is a landmark decision in the realm of shared mobility and may have broader implications for the industry as a whole.
