?? The Rise and Fall of Gogoro, Taiwan’s EV Unicorn
A Deep Dive Into Taiwan E-scooter Pioneer Gogoro’s Fall from Grace
A decade ago, Gogoro was hailed as a symbol of Taiwan’s innovation, winning widespread support as it revolutionized electric scooters. Today, however, the company finds itself under investigation for using Chinese-made parts, leading to CEO Horace Luke’s ousting. How did the company that once inspired a nation reach this point?
On September 13, Gogoro held an emergency press conference where it was announced that founder and CEO Horace Luke would step down, replaced temporarily by Taiwan GM Henry Chiang, signaling a shake-up at the leadership level.
The company gave no clear reason for Luke’s departure, only referencing “personal career planning.” It avoided addressing the brewing scandal over using Chinese components to obtain government subsidies. However, filings with the U.S. Securities and Exchange Commission (SEC) told a different story.
According to the SEC filings, Gogoro admitted that certain vehicles “inadvertently” used imported parts, violating Taiwanese regulations, which require core electric scooter components to be produced locally for customers to qualify for government subsidies. The company promised to cooperate fully with authorities and continue its own internal investigation, signaling that Luke’s resignation was meant to demonstrate Gogoro’s commitment to transparency.
The Subsidy Scandal and Supply Chain Missteps
In a written response to CommonWealth dated Sept. 16, Gogoro first admitted to using imported parts in its JEGO scooter model, marking a significant turning point in the ongoing investigation. The company has pledged to replace the parts at no cost to consumers, but the scandal’s roots run deeper.
As far back as 2021, Taiwan’s Ministry of Economic Affairs began investigating the use of Chinese-made parts in Gogoro’s VIVA model, and recent revelations have only intensified scrutiny. Chiang has acknowledged that the company is working to address internal weaknesses and management processes.
Founded in 2011, Gogoro burst onto the global scene in 2015, unveiling its first smart scooter at the Consumer Electronics Show (CES) in Las Vegas, along with the world’s first battery-swapping network. The product launch drew massive attention, and many saw the company as a future tech unicorn for Taiwan.?
At its peak in 2019, Gogoro recorded 145,000 new scooter registrations in a single year. However, the company’s momentum has since stalled, and its domestic dominance has been slowly eroding.
The abrupt departure of Horace Luke came as a shock to many, not least because he had been the public face of the company for over a decade. Gogoro’s largest shareholder, Ruentex Group’s Chairman Samuel Yin, who had supported the company for 13 years, has now taken a more hands-on approach by installing a legal team to lead the company through this turbulent period. This suggests that legal and profitability concerns now outweigh the innovative zeal that initially drove Gogoro forward.
Read the full article:
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