I expect we will see more of this across companies that provide short-term access scooters, bikes, etc. There will be more consolidation in the industry. There is also the question whether short-term access bikes and scooters are even a viable business model in cities. Even city governments who institute these type of public bike share programs have to spend millions in subsidies to keep the programs afloat. Electric scooter company Bird files for bankruptcy Micromobility startup was delisted from the NYSE in September https://techcrunch.com/2023/12/20/bird-bankruptcy/ Bird has filed for Chapter 11 bankruptcy, capping off a turbulent year for the electric scooter company. In a press release today, Bird confirmed that it had entered into a “financial restructuring process aimed at strengthening its balance sheet,” with the company continuing to operate as normal in pursuit of “long-term, sustainable growth.” Founded in 2017 by former Lyft and Uber executive Travis VanderZanden, Bird is one of numerous startups to introduce dockless micromobility platforms around the world, allowing city-dwellers to pay for short-term access to electric scooters or bikes. The company went public in late 2021 via a SPAC merger, but in a crowded market built on questionable economics, its stock went into a perennial nosedive, with its market cap dropping from more than $2 billion at its New York Stock Exchange (NYSE) debut to just $70 million 12 months later. This decline led the NYSE to issue a warning that Bird’s share price was too low. Things didn’t improve, and with its share price continuing to plummet, CEO VanderZanden departed in June with the company eventually delisted from the NYSE in September. Separately, Bird also announced a round of layoffs shortly after buying rival Spin for $19 million. Chapter 11 A Chapter 11 bankruptcy will enable Bird to restructure its financials without disrupting day-to-day operations, with Apollo Global Management division MidCap Financial among existing lenders providing $25 million in financing through the bankruptcy proceedings. The ultimate goal is to sell Bird’s assets, with a so-called “stalking horse” agreement kicking off a bidding process designed to get as much value out of Bird as possible, with its lenders setting a baseline bid before opening things up to external suitors over the next four months. Interim CEO Michael Washinushi will continue in his role before and after the restructuring, according to the statement. “This announcement represents a significant milestone in Bird’s transformation, which began with the appointment of new leadership early this year,” Washinushi said. “We are making progress toward profitability and aim to accelerate that progress by right-sizing our capital structure through this restructuring. We remain focused on our mission to make cities more liveable by using micromobility to reduce car usage, traffic, and carbon emissions.” It’s also worth noting that Bird’s Canadian and European operations are not part of this bankruptcy filing, and will “continue to operate as normal,” the company said. This latest news comes just a day after competitor Micromobility.com was delisted from the Nasdaq over its failing stock price, three years after it too went public via a SPAC merger. And in Europe, dockless scooter startup Tier recently laid off 22% of its workforce, which followed Dutch e-bike startup VanMoof’s bankruptcy proceedings. So all in all, it hasn’t been a great year for the micromobility realm.
Not surprised at all but I feel like you can't short this garbage. Between overt and/or covert govt support and irrational valuations it can take years to fail. Meanwhile scooters are just dumped randomly on the sidewalk, and on various properties.
I saw this coming. They say their scooters are "indestructable". But i cant tell you how many times ive seen a scooter in a dumpster, or even off the bottom of a bridge (I spearfish). Its inevitable this was bound to happen. Plus too many rules on when and where you can ride
I used Bolt scooters during the summer. The only advantage is that you don't have to wait for taxi/uber/bolt. But other than that, - they cost as much to travel, all kinds of limitations, penalties and etc. Mostly because of kids using them. Which they should not, cuz they drive like crazy. Got my own scooter and was like ,,da hell is wrong with this thing" (couldn't start it)
The supply is far greater than the demand. Those electric scooters are a nuisance and safety hazard. It knocks pedestrians down. It is fine if it burns the owner's house due to a battery fire. It might burn the neighbors' houses.
I used them in Paris and realized they ended up costing something like $20/hour! In Monaco they are limited at $1or 2/hour. These scooters or bikes are really great to go beyond the limits of walking. It becomes easy to visit all of Monaco in a day, or Paris in a couple of days. The problem was the abuse from kids, lack of regular maintenance, unclear local policies regarding their use (street or sidewalk, helmet or not) and the concerted negative reaction from displaced businesses like taxi/Uber, city transport, etc.