As cars lined up for gasoline in short supply at several stations in Harrisonburg, Va., stemming from the massive Colonial Pipeline ransomware attack, a young rider whizzed by one long gas line unimpeded on an electric Bird e-scooter.
The irony of that scene in a college town last week might partly explain why Bird has flourished over the last four years. Based in Santa Monica, California, Bird has grown to 200 cities globally.
Now Bird is planning to go public on NYSE through a merger with a blank check company, Switchback II. The combination is valued at $2.3 billion or 2.8 times estimated revenues for 2023, according to a statement.
“This is the next significant step on our journey to provide the world with safe, eco-friendly transportation,” Bird Cities founder and CEO Travis VanderZanden said in a blog.
Obviously, scooters can’t travel long highway distances or carry heavy loads, but they can make the short trips that comprise much of city traffic and contribute to greenhouse emissions. The green theme is a big draw for some scooter riders, but also for investors.
Switchback II is a special purpose acquisition company (SPAC) run by oil and gas executives who want a clean energy combination. It raised $275 million in January, targeting a company excelling in decarbonization innovation “to achieve a worldwide objective of net-zero emissions.”
With Bird, Switchback will access $428 million from private investors and $160 million from Fidelity Management & Research Co. and others. Bird also has access to $40 million in financing from specialty finance company Apollo Investment and MidCap Financial Trust.
The SPAC is led by co-CEOS and directors Scott McNeill and Jim Mutrie. McNeill was CFO at energy firm RSP Permian when it merged with Concho Resource in a $9.5 billion deal in 2018.
Mutrie most recently was vice president and general counsel of RSP.
Aside from the economics of investing in green technology like e-scooters, cities see value in supporting micromobility services such as scooters and electric bikes.
Many urban residents do not own a car, partly because of the expense of parking one as well as the maintenance and insurance they require.
“We are seeing strong growth in e-scooter ridership in our micromobility program,” said Rick Usher, assistant city manager for Kansas City, Missouri, in an email to Fierce Electronics.
Bird recently upgraded its KCMO fleet to the Bird Two model and the city has entered into a new agreement to continue the program, Usher added.
“We definitely see the value of e-scooters in the regional transit system and we are continuing to work with Bird and Spin to make micromobility available to low-income residents who rely more on public transit to education, employment and shopping,” Usher added. ”We have also been constructing more protected bike lanes and microbility hubs.”
Kansas City’s streetcar route is in the process of being extended south of the urban core to the University of Missouri Kansas City where micromobility will eventually be a factor in moving students to classroom buildings a short distance away. In reverse, a trip from the campus to downtown could be convenient way to reach work, using a scooter to access the streetcar station.
Bird recently announced it was selected to participate in New York City’s first e-scooter pilot launching in the Bronx.
The global market for e-scooters reached more than $18 billion in 2019 according to Grand View Research market analysis. “The rising need for fuel-efficient vehicles, backed by increasing concerns over carbon and greenhouse gas emissions, is expected to drive the adoption of e-scooters,” the firm said.
More than half of electric scooters run on voltage greater than 48 volts, the segment expected to grow the most in coming years at11% annually, Grand View said. Sealed Lead Acid batteries dominated the market in 2019 due to their robustness, but they are bulky and discharge rapidly. Lithium-ion batteries are expected to grow 10% annually, and the price is expected to drop by 70% by 2030, which will decrease the cost of electric scooters.
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