Bird says he will spend $ 150 million on a major expansion in Europe. The Santa Monica-based scooter-sharing company has announced that it will take its battery-powered two-wheelers to 50 new cities on the continent in the coming months, in addition to increasing its fleet in its current markets. The shift comes as scooter sharing continues to perform strongly in Europe amid the ongoing COVID-19 pandemic.
To help oversee this new initiative, Bird is promoting two employees to its executive team: Renaud Fages is appointed head of global operations; and Brendan O’Driscoll will be the head of product, growth and data, overseeing Bird’s global product strategy and implementation.
“Europe is playing a leadership role not only in adopting micro-EVs, but in redesigning cities to promote their safe use,” said Travis VanderZanden, Bird’s founder and CEO, in a statement.
Bird said that part of his $ 150 million investment will be spent on “implementing the next generation of recycling and second life vehicle applications, investing in industry-leading capital programs and securing partnerships across the region designed to improve transportation. for all Europeans “.
Since arriving in Paris in 2019, Bird has seen enormous growth potential in Europe, with its more robust network of cycle paths and a culture that is less dependent on personal vehicles. Bird acquired Circ, a leading rental company for electric scooters in Europe and the Middle East, in January 2020. And the company now operates in more than 50 cities on the continent, which means that this new investment will represent a doubling of Bird’s current footprint.
But the company has also seen a number of setbacks. Ultimately, Bird has not won one of the coveted licenses to operate its scooters in Paris, nor does it appear to be on track to obtain a license in London.
Bird has become increasingly dependent on revenue from its franchise program, in which the company sells its older scooters to small operators and keeps a portion of each trip. The program, called Bird Platform, caused some operators to go deeply into debt, OneZero reported last year. Since then, the company has launched the Bird Platform in countries like Switzerland and Estonia, encouraging investors who hope it will reduce Bird’s capital and labor expenses.
In January, The information reported that Bird was approaching an agreement to raise more than $ 100 million in convertible debt from some of its existing investors. The debt, which could eventually be converted into shares, would help Bird avoid selling shares at a lower price than in previous fundraising rounds.
The company is also doubling direct consumer sales, launching its $ 599 Bird Air last year.