Bird said it would “exit Germany, Sweden and Norway entirely, as well as settlement operations in ‘several dozen more markets, most commonly small to medium-sized’ in the United States, Europe, the Middle East and Africa, according to the Bird did not respond to TechCrunch’s requests for more information, so it’s unclear which cities Bird will be leaving from. However, the only market in the Middle East that Bird finds itself in is Israel, and Bird does not appear to be in an African country. .
The company’s downsizing comes months after Bird laid off 23% of its staff in a bid to become more financially self-sufficient and achieve profitability. More importantly, Bird wants to increase its percentage value before it is removed from the New York Stock Exchange. In June, Bird earned a reprimand from the New York Stock Exchange for trading too low. The company has until its annual meeting of shareholders in June to return to compliance, which means maintaining an average value of at least $1 for 30 consecutive business days and having a percentage cost of more than $1 on the last trading day of that month. If inventory is still below $1, Bird would continue with an opposite split with percentage approval, according to Bird CEO Shane Torchiana.
When Bird won the warning, it was trading at $0. 56. Today, Bird is trading at $0. 37 after hours, which, to be fair, is up 1. 01%.
In a blog post, Bird blamed much of the bumps in the road to profitability in cities that lack a “robust regulatory framework. “They have too much competition, an oversupply of cars and crowded streets.
It’s unclear what this will mean for Bird’s army of fleet managers who will be affected by the change, and Bird didn’t respond in time to TechCrunch’s request for comment.
Bird’s fleet managers are necessarily subcontractors who pay upfront fees to manage scooter fleets for Bird. Basically, they pay to rent Bird’s scooters so they can implement them and earn revenue, but they are guilty of maintaining, storing, and maintaining them. Insurance coverage good enough. The program has been criticized for potentially attracting green contractors in debt for scooters they will never have.
Information related to Bird’s warning to the New York Stock Exchange has been clarified in this article.