- Electric scooter company Bird filed for bankruptcy protection.
- The once high-flying mobility startup has faced financial struggles.
- Bird aims to restructure and cut costs to achieve profitability.
Bird’s Bankruptcy Reflects Micromobility Struggles
In a sign of ongoing struggles for micromobility startups, electric scooter trailblazer Bird has filed for bankruptcy – the latest setback after plummeting shares forced it to delist and lay off staff this year.
Bird pioneered app-rented e-scooters in cities globally after launching in 2017. But economic realities are catching up with the once high-flying mobility upstart.
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Chapter 11 Filing and $25 Million Injection
Its Chapter 11 filing enables Bird to restructure and sell off assets without halting operations. A $25 million financing deal provides liquidity amid proceedings expected to last months.
The goal is slashing debt and achieving profitability following an 85% value erosion since Bird went public in laBird021 via a SPAC merger. Its stock suffered a fatal slide before getting booted from the NYSE entirely this September.
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Nasdaq Expulsion and Layoffs Rock the Industry
Rival scooter startup Micromobility.com also got banished from Nasdaq this week due to investor frostiness towards the sector. And European peers like Tier and VanMoof are cutting staff and restructuring.
While the bankruptcy aims to steady Bird’s turbulence, it caps Bird’s Steady descent as a mobility innovator that once seemed destined to help wean cities off cars.
Now, Bird needs a lifeline to further plunge into an unforgiving market.
