Bird files for Bankruptcy

The electric scooter company file Chapter 11 Bankruptcy

Bird, the electric scooter company, has initiated Chapter 11 bankruptcy proceedings, concluding a tumultuous year for the firm. In an official statement released today, Bird acknowledged its entry into a "financial restructuring process designed to fortify its balance sheet," assuring stakeholders that the company will maintain normal operations while actively pursuing "long-term, sustainable growth."

Established in 2017 by former Lyft and Uber executive Travis VanderZanden, Bird was among several startups globally that introduced dockless micromobility platforms, enabling urban residents to access electric scooters or bikes for short-term use. Despite its initial public offering in late 2021 through a SPAC merger, Bird faced challenges in a competitive market with questionable economic dynamics. Over the subsequent 12 months, its stock witnessed a persistent decline, plummeting from a market capitalization exceeding $2 billion at the New York Stock Exchange (NYSE) debut to a mere $70 million. The NYSE issued a warning about the low share price, and the situation did not improve, resulting in CEO VanderZanden's departure in June and eventual delisting from the NYSE in September.

Simultaneously, Bird announced layoffs after acquiring rival Spin for $19 million. Interim CEO Michael Washinushi is set to continue in his role throughout and after the restructuring, according to the company's announcement.

Washinushi commented on the development, stating, "This announcement represents a significant milestone in Bird’s transformation, which began with the appointment of new leadership early this year. 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 livable by using micromobility to reduce car usage, traffic, and carbon emissions."

It is noteworthy that Bird's operations in Canada and Europe remain unaffected by the bankruptcy filing and will "continue to operate as normal," the company assured.

This announcement follows the recent delisting of competitor Micromobility.com from the Nasdaq due to a declining stock price, three years after its own public debut via a SPAC merger. Additionally, in Europe, Tier, a dockless scooter startup, recently laid off 22% of its workforce, following the bankruptcy proceedings of Dutch e-bike startup VanMoof.

Amidst these industry challenges, a disheartening story surfaced from an Oklahoma woman who contracted for Bird since 2019. Engaged first as a charger and later in the fleet manager program, she requested time off this summer due to her father's hospice care. However, she claims she was removed from the program two days before his death in July because her productivity score declined. Expressing her distress, she stated, "I've worked all kinds of jobs. I've never in my life felt so disposable."