The cooperative scooter operator Bird (BIRD) announced yesterday that it intends to stop its operations in several core markets around the world. According to documents submitted by Bird to US regulators – the cooperative scooter operator will cease to operate in Germany, Sweden, Norway and several “medium and small markets” as defined by the company.
Bird’s announcement also includes a reference to what it defines inclusively as “the Middle East”, although in practice Bird is active in only one country in this region: Israel. Bird Israel reported that the company’s operations continue as normal.
Bird itself was founded in 2017 by Travis van der Zanden, a former executive at Lyft and Uber, and since then has known quite a few ups and downs. The model on which the company’s activity is based is simple: renting scooters by the hour. But this model is not necessarily profitable in all cities of the world. According to the company’s main reports for the second half of 2022, Bird recorded revenues of $76.7 million – a 28% increase compared to the figures for the first half of 2021. Bird’s profits from ridesharing on its vehicles were $38.4 million – a 37% increase compared to the figures for 2021. However, According to Bird’s statements, its revenue from sharing scooter rides decreased relative to its revenue from the sale of ancillary products. According to the median company reports, the main problem lies in the destruction of the cooperative tools. According to Bird, in the first half of the year the company recorded operating expenses of 317.9 million dollars, which caused a loss of 310.4 million dollars (compared to a profit of 43.7 million dollars in the corresponding half last year). As a result, Bird announced last month “management changes” designed to push the company to long-term profitability, according to the organization’s statement.
The European market from which Bird withdrew is less focused on cooperative tool rentals and more on the use of tools owned by the user. What’s more, the use of Bird and similar tools in Europe is seasonally limited and subject to increased wear and tear. Alongside Bird’s announcement of withdrawing from European markets, the company is focusing on entering additional cities in the US.
Bird is active in Israel, mainly in Tel Aviv, alongside four other cooperative scooter operators. These days the companies are preparing for the publication of a new tender. Today, the number of cooperative scooters is limited to 1,800 tools per operator.