Bird says it will spend $ 150 million on a major expansion in Europe. The Santa Monica-based scooter-sharing company has announced it will bring battery-powered two-wheelers to 50 new cities on the continent in the coming months, in addition to expanding its fleet into its current markets. The move comes as the share of scooters continues to perform strongly in Europe amid the ongoing COVID-19 pandemic.
To oversee this new initiative, Bird promotes two employees to its executive team: Renaud Fages is named head of global operations; and Brendan O’Driscoll will be head of product, growth and data, overseeing both Bird’s global product strategy and its implementation.
“Europe is playing a leading role not only in embracing micro-EVs, but also in redesigning cities to promote their safe use,” said Travis VanderZanden, founder and CEO of Bird.
Bird said portions of its $ 150 million investment will be spent on ‘implementing next-generation vehicle recycling and second-life applications, investing in leading-edge equity programs and acquiring partnerships across the region designed to transport for to improve all Europeans. ‘
Since first arriving in Paris in 2019, Bird has seen great potential for growth in Europe, with its more robust network of cycling lanes and a culture less dependent on privately owned vehicles. Bird acquired Circ, a leading electric scooter rental company in Europe and the Middle East, in January 2020. And the company now operates in more than 50 cities on the continent, meaning this new investment will be a doubling of Bird’s current footprint.
But the company has also experienced a number of setbacks. Bird has ultimately not won any of the coveted licenses for the use of scooters in Paris, nor does it look like it’s on its way to getting a license in London as well.
Bird has become increasingly dependent on revenue from its franchise program, in which the company sells its older scooters to small businesses and reduces each ride. The program, called Bird Platform, has led some operators into deep debt, OneZero reported last year. The company has since launched Bird Platform in countries such as Switzerland and Estonia and has encouraged investors hoping it will reduce Bird’s labor and capital expenditures.
In January, The information reports that Bird is 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 stock, would help Bird sell shares at a lower price than in previous fundraising rounds.
The company also doubled sales directly to the consumer, who announced its $ 599 Bird Air last year.