There was a December story I never got to cover properly, and that was my delight over Bird Scooter’s bankruptcy.
Electric scooter company Bird Global announced Wednesday that it has filed for bankruptcy protection in an attempt to stabilize its wobbly finances.
The move marks a sobering comedown for a formerly high-flying startup that was trying to make it easier to get around big cities in an environmentally friendly way with its fleet of electric scooters. The concept attracted about $500 million in investments from prominent Silicon Valley venture capital firms such as Sequoia Capital and Accel Partners before becoming a publicly traded company in 2021.
The things have been annoying ubiquitous in downtown Austin, from Bird and other firms like Lime.
Now, the Miami-based company finds itself struggling to survive after losing more than $430 million since the end of 2021.
Bird has lined up $25 million in financing from MidCap Financial, a division of Apollo Global Management, as it tries to reorganize under Chapter 11 bankruptcy protection in Florida.
Michael Washinushi, Bird’s interim CEO, predicted the company will be able to bounce back and continue its “mission to make cities more livable” by providing vehicles that don’t clog the roads nor burn fuel. But investors seemed doubtful as Bird’s stock lost nearly 80% of its remaining value Wednesday to close at 8 cents per share, a far cry from its price of about $154 at the end of 2021.
I have no objections to electric scooters themselves, or even renting electric scooters. What I object most strenuously to is the business model Bird and their ilk have pursued, which is: Just leave your scooters any damn place and we’ll pick them up later.
This is an abuse of both the commons and any patches of private property these scooter-renting Eloi happen to leave their discarded vehicles scattered onto. We have laws against littering, and they should apply equally to people who dump these things on lawns and sidewalks.
Bird and their ilk seem both a sneaky assault on private property, and an ill-considered investment scheme of companies trying to gin up a new market far in advance of real demand, much like WeWork. And this “ride sharing” idea already failed miserably in China with multiple non-electric bike startups going bust and leaving behind mountains of unused bikes.
Thanks to their abuse of the commons, Bird deserves to go bust.
And now a bonus Family Guy clip:
(Note: BlueHost is still going dog slow. I’ll try to chat with someone there tomorrow.)