Bird, the electric scooter sharing company, has not gone out of business as of October 2023. However, the company has faced some challenges in recent years that have led some to speculate about its future.
What is Bird?
Bird is an electric scooter sharing company founded in 2017 in Santa Monica, California. The company operates a dockless electric scooter sharing system where users can locate and unlock scooters using a mobile app. Bird expanded rapidly after launch, operating in over 100 cities globally at its peak.
Bird’s scooters are dockless, meaning they do not have fixed docking stations. Instead, riders can pick up and drop off the scooters anywhere within a service area. This provides flexibility for riders to get from point A to point B without being constrained by dock locations.
Did Bird go bankrupt?
No, Bird has not declared bankruptcy as of October 2023. The company has raised over $1 billion in funding since its founding and was valued at $2.5 billion during its last funding round in 2020.
That said, Bird has faced financial struggles in recent years. The company laid off 23% of its workforce in 2020 in an effort to cut costs during the COVID-19 pandemic when rider demand plummeted. Bird also pulled out of some markets in the Middle East, Latin America, and Europe to refocus on core markets like the United States and Europe.
While these are signs of financial distress, Bird has not declared bankruptcy. The company is still operating and has maintained its position as a top electric scooter provider in the United States and Europe.
What challenges has Bird faced?
Bird has faced a few key challenges since its rapid expansion after launch:
- COVID-19 pandemic – The pandemic severely impacted demand for shared micromobility options like Bird as people stayed home more.
- Market saturation – Many cities became saturated with Bird and competitor scooters, damaging unit economics.
- Regulations – Cities have been working to regulate scooter sharing, in some cases banning the practice or not renewing licenses.
- Unit economics – The tricky unit economics of maintaining and charging a scattered scooter fleet have created challenges for profitability.
- Competition – Intense competition from rivals like Lime put pressure on Bird’s market share.
These interlocking challenges of low demand, increased costs, and competitive pressure have put a strain on Bird’s business. However, the company has shown resilience by raising additional capital and adapting its business model.
How has Bird adapted its business model?
In response to these challenges, Bird has made some key adaptations to its business model in hopes of achieving profitability:
- Focus on core markets – Bird consolidated its operations to its best-performing markets in the US, Europe, Middle East, and Asia Pacific.
- Added new vehicle types – Bird now offers e-bikes and mopeds in addition to scooters, diversifying its product lineup.
- Increased ride prices – Bird has been raising the per-ride cost for customers in order to improve unit economics.
- Fleet management tech – Bird developed fleet management technology to better distribute, maintain, charge, and repair its global fleet.
These moves aim to right-size Bird’s operations, reduce costs, improve margins, and adapt the business to be resilient against macroeconomic and competitive forces.
What is Bird’s current status?
While still facing challenges, here is Bird’s current status as of late 2022:
- Operational in over 200 cities globally
- Provides e-scooters, e-bikes, and mopeds for rent
- Has nearly 50 million registered riders
- Has raised $1.5 billion in total funding so far
- Valued at around $2.5 billion in latest funding round
- Still losing money overall but aiming to reach profitability
So in summary, Bird endured some hard times in 2020-2021 with the pandemic, but remains in business as a top electric scooter provider. While not yet profitable, Bird aims to reach profitability by optimizing operations in its best markets.
What does the future look like for Bird?
Bird’s future remains uncertain, but here are some potential directions:
- Achieve profitability – If Bird can optimize its unit economics, it may be able to finally reach profitability in its core markets.
- Get acquired – Bird could get acquired by a bigger transportation company looking to add electric vehicles.
- Go public – Bird may decide to go public via an IPO to access more capital for expansion.
- New vehicle types – Bird may continue expanding into new vehicle form factors beyond scooters and bikes.
- Tech licensing – Bird could license its fleet management tech stack to other micromobility operators.
Bird and the broader micromobility industry still face regulatory uncertainty in many cities. But if Bird can survive the next few years, there may be opportunity to thrive as electric urban mobility gains traction globally.
Conclusion
In summary, while Bird has faced financial and competitive struggles in recent years, the company is still operating and has not gone bankrupt. By optimizing operations, adding new vehicles, and focusing on core markets, Bird aims to achieve profitability. Its future remains uncertain but Bird retains pole position in the electric scooter industry with its large rider base and fleet. Reports of Bird’s demise have been greatly exaggerated – the iconic scooter company is still rolling along albeit with a more focused approach. With urban transportation in flux, Bird could still have room to glide into a more profitable future.