Shared micromobility startup Bird has faced a series of challenges since going public in 2021, including its recent delisting from the New York Stock Exchange. However, Bird is aiming to bounce back with its acquisition of e-scooter company Spin from German operator Tier. This strategic move is projected to provide Bird with the lift it needs to achieve long-term sustainable profitability.
Key Takeaway
Bird’s acquisition of Spin presents a potential turning point for the company as it seeks to achieve sustainable profitability. With access to new markets and additional revenue streams, Bird aims to recover from recent setbacks and regain investor trust. The success of this strategic move will depend on effectively leveraging Spin’s resources and expanding its micromobility services.
Delisting and the Spin Acquisition
After failing to maintain a market capitalization above $15 million for 30 consecutive days, Bird’s delisting from the NYSE materialized. This unfortunate development coincided with the recent purchase of Spin. Consequently, Bird now finds itself trading on the over-the-counter marketplace while it appeals the NYSE’s decision.
Bird’s decision to acquire Spin highlights its commitment to securing a profitable future. The company believes that the addition of Spin’s fleet of scooters and access to “key cities” will generate additional revenue and have an immediate positive impact on earnings.
Unlocking New Markets and Growth Potential
With Spin currently operating in approximately 50 cities and university campuses across North America, Bird’s acquisition opens up new markets and expansion opportunities. The two companies have minimal overlapping operations, allowing Bird to gain access to cities such as Baltimore, Salt Lake City, Washington D.C., and even its home turf of San Francisco, from which it was recently banned.
By leveraging Spin’s established presence in these cities, Bird aims to regain investor confidence and revive its market performance. The acquisition provides Bird with a fresh avenue for growth, as it can tap into Spin’s customer base and operational expertise to fuel its recovery.
