Bird Scooters Fly Back into Trash! Chapter 11 Filed

Bird, the once high-flying electric scooter company, has officially taken a nosedive into Chapter 11 bankruptcy, marking the culmination of a tumultuous year for the “micromobility” giant.

I think they were doomed the minute they started using the phrase ‘micromobility’.

In a press release that dropped this week, Bird confirmed its entry into a “financial restructuring process aimed at strengthening its balance sheet,” while assuring the public that day-to-day operations would continue in the pursuit of “long-term, sustainable growth.”

Founded in 2017 by Travis VanderZanden, a former executive at ride-hailing behemoths Lyft and Uber, Bird soared into the scene alongside a slew of startups introducing dockless micromobility platforms worldwide. This innovative model allowed urban dwellers to access electric scooters or bikes on a short-term basis.

Remember 2018?  When people all over the world were simply stuffing e-scooters into the the trash?

Gf just texted me what should undoubtedly be the file photo for San Francisco’s dockless scooter backlash pic.twitter.com/Gko2ToHmpd

— Graham Hancock (@grahamhancock) April 13, 2018

Bird was unceremoniously kicked out of San Francisco for dumping some 1,500 e-scooters all over the city without permission or regulation.  So when it came time for the city to issue permits for e-scooter rentals to operate legally in the city, Bird was left out.

Bird took its chances with a public offering in late 2021 through a SPAC merger. However, navigating a crowded market with questionable economics proved challenging, and Bird’s stock took a relentless dive. Within 12 months of its debut on the New York Stock Exchange (NYSE), the market cap plummeted from over $2 billion to a meager $70 million, prompting the NYSE to issue a warning about the rock-bottom share price.

SAN FRANCISCO, CALIFORNIA -: Bird Founder & CEO Travis VanderZanden speaks onstage during TechCrunch Disrupt San Francisco 2019 at Moscone Convention Center on October 03, 2019 in San Francisco, California. (Photo by Steve Jennings/Getty Images for TechCrunch)

The downward spiral continued unabated, leading to the departure of CEO VanderZanden in June and eventual delisting from the NYSE in September. Adding to the woes, Bird initiated a round of layoffs shortly after acquiring rival Spin for $19 million.

Opting for a Chapter 11 bankruptcy, Bird aims to restructure its financials.  The endgame involves selling Bird’s assets, to the highest bidder.

Interim CEO Michael 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.” He expressed optimism about progressing toward profitability and accelerating that journey by right-sizing the capital structure through the restructuring. The overarching mission, according to Washinushi, remains focused on making cities more livable by leveraging micromobility to reduce car usage, traffic, and carbon emissions.

It’s noteworthy that Bird’s Canadian and European operations remain unscathed by this bankruptcy filing and will “continue to operate as normal,” according to the company.

This development follows closely on the heels of Micromobility.com, a Bird competitor, being delisted from the Nasdaq due to its plummeting stock price, three years post its SPAC merger.  The whole ‘micromobility’ sector, seems to be currently driving into a ditch.