Electric scooter company Bird continues to downsize as they have announced that their machines will be exported in some regions in an attempt to maintain popularity.
The the company claims that it will “quit completely” (opens in a new tab) Germany, Sweden and Norway as well as a number of “small and medium-sized markets” across the US, Europe, the Middle East and Africa, although it doesn’t mention any exact locations. However, we do know one thing: Atchison, Kansas, recently revealed (opens in a new tab) that Bird is suspending all activities in the city indefinitely. The city went on to say that Bird did not see Atchison as a good location “to support [its] short-term requirements to build a long-term business. This rationale is consistent with the company’s official statement about downsizing.
Low support
Bird said the reason for the exit was due to the “lack of a strong regulatory framework” in local areas. The company claims 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 went on to blame the high traffic in these areas for “overcrowded streets,” along with stiff competition from rivals as other reasons for the store’s closure.
From here, the company will begin to phase out cities it deems uninhabitable to focus instead on cities with “the right regulatory framework and business environment.” Unfortunately, this downsizing will affect Bird employees in these regions. Though he didn’t say it outright in the announcement, Bird hinted that these people lost their jobs.
Absence from the announcement is any mention of fleet managers. According to Bird (opens in a new tab), these are local businesses and entrepreneurs who manage the company’s fleet of e-scooters in their local area. Managers pay a fee to the company and in return they can earn an income from the machine. Presumably, they also lost their jobs, which could take them the heaviest blow from anyone. The fleet management program has been criticized in the past (opens in a new tab) for putting people in debt thousands of dollars for machines they will never actually own. It is likely that something similar could happen to fleet managers who lose their business overnight.
We’ve reached out to Bird to see if they’d like to make a statement. A spokesperson for the company got back to us and basically reiterates what Bird said in its announcement: that it will focus “on the cities and countries that have put in place the legal framework in place.” appropriate business management and environment…”
Recent Trends
Sadly, Bird’s downsizing continues this year’s trend of layoffs at tech companies. In reality, back in june (opens in a new tab), the company laid off 23% of its employees as a way to cut costs. Something similar is happening at Microsoft to the company laid off some of its employees, though it doesn’t say how much. (An anonymous source claims that around 1,000 jobs will be affected.) Likewise, companies like Meta have enacted hiring freezes as a way to survive during these difficult times.
What’s particularly unfortunate about Bird’s size reduction is that it’s hitting customers hard because people are losing their shipping methods. If you see Bird scooters disappearing in your area, we recommend you check it out TechRadar’s best e-car list for 2022 for ideas for a more permanent solution.
