US micromobility company Bird pulls out of Germany, Sweden, and Norway: Know more

California-based Bird, a shared micromobility company, announced on Tuesday that it is exiting three European countries, Germany, Sweden, and Norway, and several dozen small- to mid-sized cities across the US and EMEA region.

The company will also lay off employees in the affected markets, but didn’t disclose exact numbers. According to Bird, the primary motivation for exiting these markets was to achieve financial self-sustainability.

As part of this plan, the US micromobility company would cease operations in markets that lack the regulatory framework necessary to facilitate the development of an innovative, competitive, self-sustaining micromobility industry. 

“It has become clear that some markets lack such a framework, resulting in an oversupply of vehicles that have 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,” says the company in the blog post. 

“In the short-term, the current macroeconomic conditions have created an environment that requires us to increase our level of financial discipline and make a clear distinction between markets where we see a near-term path to fully self-sustainable operations, and those which appear to be longer-term riskier investments.”

Moving forward, Bird plans to focus on cities and countries with the right regulatory framework and business environment in Europe, the US, and the rest of the world. 

Bird: Previous developments

The announcement comes a few weeks after a significant overhaul of its C-Suite, appointing President Shane Torchiana to Chief Executive Officer, replacing founder Travis VanderZanden, who will remain Chairman of the Board.

The Board has appointed Ben Lu as Chief Financial Officer, succeeding Yibo Ling. Additionally, Lance Bradley, currently Senior Vice President, Engineering, has been promoted to Chief Technology Officer.

In June, Bird received a delisting warning from NYSE (New York Stock Exchange) since it was trading below $1 over a consecutive 30 trading-day period. 

Bird went public through a SPAC deal last year and began trading at $8.40 per share. 

In July, the company said it would notify NYSE that it intends to cure the stock price deficiency and to return to compliance with the NYSE’s continued listing standard.

“Under the NYSE’s rules, if the Company determines that it will cure the stock price deficiency by taking an action that will require stockholder approval at its next annual meeting of stockholders, the price condition will be deemed cured if the price promptly exceeds $1.00 per share, and the price remains above that level for at least the following 30 trading days,” says the company.