As Bird acquires several regional competitors, the startup will work towards revolutionising the e-mobility industry.
Bird has announced that it will acquire Circ, a leading electric scooter rental business in Europe and the Middle East. The acquisition is the latest sign of consolidation among e-scooter companies, after Bird acquired their West Coast rival Scoot, after shutting down in San Francisco in 2017. As part of the deal, the company’s total valuation rounds up to $350 million.
Circ currently operates in 40 cities across 14 European countries, in addition to United Arab Emirates. As a result to this deal, the companylaid off dozens of workers at its headquarters and regional locations, citing a shift to focus onoperational efficiency and excellence.
As part of the deal, Bird will take on 300 of Circ’s employees, many of whom are based in Berlin. Without disclosing the specific amount of the transaction, Bird also announced a $75 million extension to its Series D funding round.
Still, Bird’s announcement of an additional $75 million in funding could pose as an indicatorthat venture capital firms aren’t done investingmoney into e-scooter companies, despite reports of majorcash losses and rampantmisuse andvandalism of the scooters.
Bird’s ability to impress investors emphasizes the profitability of their proven business model, while considering the lifespan of each scooter, the number of trips and areas it covers and the cost of each vehicle.
With major operators like Lime, Uber’s Jump, Spin, and Lyft discharging employeesand withdrawingfrommarkets. as they become laser-focused on making their business profitable, the recent merger accounts as a step in the right direction of becoming a highly profitable business model.
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