Bird Scooter Rental Company Goes Bankrupt

Bird, a pioneer in electric scooter rental, has filed for bankruptcy in the United States but continues its European operations.

In a statement, Bird announced that it has entered “a process of financial restructuring aimed at strengthening its balance sheet and better positioning the company for sustainable long-term growth.” The company stated that it would continue to “operate as usual” during the process by maintaining service and commitments to partner cities, fleet managers, and employees.

Founded in 2017 by Travis VanderZanden, a former executive at Lyft and Uber, Bird operates in approximately 350 cities worldwide, mostly in the United States. In 2021, Bird went public, but its market capitalization plummeted by more than $2 billion during its debut on the New York Stock Exchange, reaching only $70 million a year later. In September, its stock was delisted from the New York Stock Exchange, foreshadowing a series of layoffs. This bankruptcy provides Bird with an opportunity to restructure its finances without disrupting its daily operations. The next step is now a recapitalization or sale within 3 to 4 months… or liquidation.

The evolution of the European ecosystem has, of course, dealt a blow to the company. Between Paris, which outright banned free-floating electric scooter services, and Madrid and other cities that have restricted their scope, the mood is no longer to party.

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