It looks like the city’s last-mile mobility race may be ramping up again. On 12th June, 2019, Bird has bought its way back into the city by purchasing Scoot; one of the two scooter companies that did get permits to operate in SF.
This confirmed TechCrunch’s previous report that the two companies were in acquisition talks.
What the announcement said –
Bird and Scoot today announced that Bird is acquiring Scoot, the San Francisco-based electric vehicle pioneer. The acquisition is a strategic decision from two like-minded companies. Together, Bird and Scoot will offer riders more vehicles featuring the latest technology advancements for the sharing market; and provide service in more communities; while helping cities meet their ambitious goals of reducing both automobile traffic and climate-changing carbon emissions. Scoot will continue to operate as Scoot, a wholly owned subsidiary of Bird.
“We are thrilled to welcome Scoot to the Bird ecosystem and look forward to working with the Scoot team as we further scale our complementary missions; to replace car trips with micro-mobility options for all,” said Travis VanderZanden, founder and CEO of Bird. “Together we will make a bigger impact on our riders’ daily lives and the cities we serve.”
“Since we launched the first electric vehicle service you access with your smartphone, we have pursued our mission of Electric Vehicles for Everyone and showed cities that shared, electric mobility is a convenient, fun, and affordable way for citizens to get where they need to go,” said Michael Keating, Scoot’s founder and President. “With Bird, our mission remains the same, but the scale at which we will pursue it, and the vehicles we will offer will be so much better for our riders and the cities we serve.”
More Insight –
Deal between Bird and Scoot –
Prior to the acquisition, Scoot was valued at around $71 million with $47 million in funding. Scoot first launched way back in 2011 with its fleet of electric mopeds. Scoot has since deployed electric bikes and scooters.
Bird and Scoot did not disclose the terms of the deal; but the WSJ reports the deal was around $25 million in a combination of cash and stock. TechCrunch’s Kate Clark has since confirmed the deal was worth less than $25 million.
This acquisition means Bird may finally get to operate shared electric scooters in San Francisco. This would be in addition to its monthly rental service in the city, though; The Information reports Scoot will need a separate approval to continue operating under a new owner.