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Electric scooter company Bird continues to downsize as it has announced its machines will be leaving several regions in a bid to stay afloat.
The company states it will “completely shut down” (opens in new tab) Germany, Sweden and Norway, as well as several “small to medium markets” in the United States, Europe, the Middle East, and Africa, although exact locations were not stated. However, we know of one: Atchison, Kansas, which recently revealed: (opens in new tab) that Bird will suspend all operations in the city indefinitely. The city goes on to say that Bird did not see Atchison as a good location to “support” [its] short-term requirements for building a sustainable business.” This reasoning ties in with the company’s official statement about the downsizing.
Low support
Bird says the reason for his departure is due to a “lack of robust regulatory framework” in local regions. The company claims that some locations are not as conducive to its e-scooter business model as others. Support is available in some cities, but not others. Bird then blames the high number of vehicles in these regions leading to “crowded streets,” along with fierce competition from rivals as other reasons for closing.
From here, the company will begin wiping out cities it deems unviable to focus instead on cities with the “right regulatory framework and business environment”. Unfortunately, this downsizing affects Bird employees in these regions. While it’s not outright in the announcement, Bird alludes to these people losing their jobs.
Absent from the announcement is any mention of fleet managers. according to Bird (opens in new tab), these are the local businesses and entrepreneurs who manage the fleets of the company’s e-scooters in their area. Managers pay a fee to the company and in return they can earn an income on the machines. Presumably they also lose their jobs, which could lead to them taking the hardest blow out of anyone. The fleet manager program has been criticized in the past (opens in new tab) to put people thousands of dollars in debt for machines they will never actually own. It’s possible that something similar could happen if fleet managers lose their business overnight.
We contacted Bird to see if they wanted to make a statement. A spokesperson for the company reached out to us, essentially reiterating what Bird said in its announcement: that it will target “cities and countries that have created the right regulatory framework and business environment…”
Recent trend
Unfortunately, Bird’s downsizing continues this year’s trend of tech companies to lay off workers. In reality, back in June (opens in new tab), the company laid off 23 percent of its employees to cut costs. At Microsoft, something similar happens to the company lay off some of its employeesalthough it doesn’t say how much. (One unnamed source claims about 1,000 jobs will be axed.) In a similar vein, companies like Meta have introduced hiring freezes as a way to keep their heads above water during these trying times.
The particularly unfortunate thing about Bird’s downsizing is that it affects the customer just as much as people lose a mode of transportation. If you see Bird scooters disappearing in your area, we recommend that you check out TechRadar’s Best E-Scooter List for 2022 to get an idea for a more permanent solution.