Several dozen small to mid-sized cities in the US, Europe, the Middle East, and Africa are among the places Bird is leaving. The company said it would be laying off an undisclosed number of employees in the affected markets, but wouldn't say which cities it would be leaving.
Bird said the plan to achieve financial self-sustainability was behind the decision to exit these markets. Bird would close shop in cities that don't have a regulatory framework necessary to facilitate the development of an innovative, competitive, self-sustaining micro mobility industry.
It has become clear that some markets lack such a framework, resulting in an oversupply of vehicles that has led to overcrowded streets and a high but frequently rotating number of competitors. All this invariably leads to sizable losses for operators who, as a result, cannot afford to invest and continue to make micromobility safer and more sustainable.
Bird said the decision was difficult but that it remained optimistic about the prospects of future growth and that it would double its efforts in cities with mature regulatory systems in place.
The company isn't saying which small to mid-sized markets in the US and other countries have been affected.
The shakeup at Bird saw the company's founder and CEO replaced by a new president and COO. VandeZanden is still chair of the board. Several executives have left the company in the last few months. Bird was warned by the New York Stock Exchange that it was at risk of being de listed if it continued to trade under $1.
Bird has a market cap of $110 million and is just 4% of its valuation in January 2020. Since the beginning of the year, the company has laid off 23 percent of its staff and closed its retail scooter and bike business.
It is ironic that Bird would cite the lack of regulations as the reason for leaving certain cities, since it was one of the first companies to take advantage of the lack of rules for dockless vehicles.
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