Bird

Bird electric scooter rental service using the app of the same name shows where the previous tenant left the vehicle. Users can rent scooters for up to two days. On a single charge, the devices offered by the company can travel up to 24 km. In the first six months after the launch of the service, 50 thousand people used its services a total of 250 thousand times.

The rental price is $1, and for every minute of the trip you need to pay 15 cents. To rent a scooter, you need to link your driver's license and bank card to the application.

Bird was founded by Travis VanderZanden, who until September 2016 worked as vice president of development at Uber, and before that collaborated with another taxi ordering service - Lyft.

History

2023

Bankruptcy declaration

On December 20, 2023, the American company Bird, which produces electric scooters, announced that it was forced to initiate voluntary bankruptcy proceedings due to the deterioration of its financial situation. The corresponding application was sent to the federal court of Florida.

Bird electric scooters are touted as an environmentally friendly alternative to personal cars and different types of public. transport The popularity of electric scooters grew rapidly before the start of the pandemic, and in COVID-19 2019 the company raised more than $275 million for the development and expansion of the business. As a result, Bird's market value reached approximately $2.5 billion. However, then the situation began to deteriorate against the background of self-isolation of citizens and restrictions imposed around the world in response to the spread of coronavirus infection.

Bird forced to initiate voluntary bankruptcy proceedings as financial situation deteriorates

In September 2023, the New York Stock Exchange delisted Bird due to the fact that the company was unable to raise market capitalization above $15 million for 30 consecutive days. After that, Bird shares began to trade in the OTC market, and as of December 20, 2023, their value was less than $1.

As a result, Bird entered the financial restructuring process, which takes place in accordance with Chapter 11 of the US Bankruptcy Code. The company intends to use this procedure under the supervision of the court to facilitate the sale of a number of its assets. It says that during this process, Bird will operate as usual, serving both ordinary consumers and partners. The procedure does not apply to Bird Canada and Bird Europe units.

This solution represents an important milestone in Bird's transformation. We strive for profitability and expect to accelerate progress by adjusting the capital structure through restructuring, the company said in a statement.[1]

Delisting from the New York Exchange

On September 22, 2023, electric scooter company Bird announced that the New York Exchange would suspend trading in the company's shares after Bird's capitalization was less than $15 million within a month.

The company plans to continue trading shares off the exchange by transacting through broker networks.

Bird shares no longer traded on New York Stock Exchange

The e-scooter sharing market became a popular alternative to public transport in American cities shortly before the COVID-19 coronavirus pandemic. In 2019, Bird raised more than $500 million in investments and was estimated at $2.5 billion. During the pandemic, business development stopped and continued already in 2021, but not at such a sharp pace.

In 2020, Bird became a public company through a merger with SPAC, but the company continued to be unprofitable - in 2022, Bird announced a loss of $359 million, which is 140 million more than the year before. Revenue for the year increased to $245 million.

In 2023, the company's shares fell by 90%, on September 22, trading closed at a price of 90 cents per share, the value of the company at such a price was about $11 million. At the same time, in the same week, Bird acquired another startup Spin for $19 million, 10 of which were paid in cash.

Bird's problems are not limited to exchange trading - the company could not buy the domain bird.com and it had to register the bird.co.

In June, founder Travis VanderZanden, formerly of Uber and Lyft and considered the "king of electric scooters," left the company. The interim director is currently Michael Washinushi. Following news of the delisting, he issued a statement seeking to reassure shareholders.

We believe that the current performance does not reflect the real value of the company. We are upset, but the change in our status on the exchange does not change our obligations to our shareholders, Bird and Spin employees, our partners, as well as the cities and institutions with which we work, Vashinushi said.[2]

2018

The company raised $300 million and received a valuation of $2 billion

At the end of June 2018, Bird raised $300 million in investments and received a market value estimate of $2 billion. Thus, the American company remains the most expensive in the electric scooter market, and Reuters calls it dominant in its field.

In just a month, the startup rose in price by $1 billion: at the end of May, its capitalization was estimated by investors at $1 billion.

Electric scooter manufacturer Bird was estimated at $2 billion. Record in the market

Bird's new funding round, which became its third in 2018, was led by venture capital firm x Capital. Investors also included Accel, B Capital, CRV, Sound Ventures, Greycroft and e.ventures. Sequoia Capital partner Roelof Botha will join Bird's board of directors.

In a conversation with Reuters, a Bird spokeswoman noted that for all the time the company has been operating (since 2016), it has managed to raise a total of $418 million, which is unusually fast for startups at an early stage of development. In February and March 2018, $15 million and $100 million were invested in Bird, respectively.

Competition in the electric scooter market is intensifying. In addition to Bird, services such as Lime, Spin, Skip and Ofo work here. In addition, ride-hailing services companies Uber and Lyft filed applications earlier in June 2018 to launch scooter rental services.

Earlier, Lime raised $250 million, and Skip - $25 million. Saar Gur (Saar Gur,) of CRV, which was involved in investing in Bird, says there have been more than 20 companies in recent years tackling the so-called last-mile problem (pedestrian infrastructure development).

We see billions of dollars worth of opportunities in this market that can have a big impact on the world. We are deeply convinced that Bird has an original product and a good executive team to build something truly valuable. In investing, we focus on long-term, not short-term, profit, "said Gur.[3]

Value estimate of $1 billion - for the first time in the electric scooter market

On May 30, 2018, it became known that Bird became the first electric scooter rental service, which achieved a cost of $1 billion. The company is actively attracting investments for business development.

According to Bloomberg news agency, as part of a funding round led by investment fund Sequoia Capital, $150 million was invested in Bird. Moreover, these investments are not final. Prior to this transaction, the company was valued at $300 million.

The first e-scooter rental service reached a cost of $1 billion

One of Bird's main competitors - the Lime service - by May 2018 had collected about $132 million in investments and is close to closing another financial transaction. Lime's market value is also expected to exceed $1 billion.

The publication notes that the activity of investors in the electric scooter market occurs against the background of how the city authorities are trying to regulate this market against the background of numerous complaints from residents. The main discontent is due to the fact that users of electric scooters quickly drive along the sidewalks and leave vehicles in inappropriate places.^[4]

Notes