Two years after Redwood City contracted with Bird Global Inc., a micromobility service that offers electric scooters and bikes for rent per minute, the company filed for bankruptcy.
Yet, the company plans to continue to provide uninterrupted service, and the city said Bird has been a responsive partner for its micromobility program that aims to provide first and last-mile connections to destinations by offering alternative modes of transportation for short trips within the city.
Malahat Owrang, Redwood City’s senior transportation planner, said the city’s contract is up in May, but the partnership will likely continue unless the company decides otherwise.
“The city values shared alternative modes of transportation, to support shorter trips instead of driving, especially with large development projects that are around downtown, the scooters can be a resource,” Owrang said.
The average trip in Redwood City is about a mile, generally used from downtown to the nearby neighborhoods. Ridership peaks in the summertime and averages around 5,000 rides per month in the city. During the winter season, when rides are rare, scooter usage declines to around 1,500 uses per month, according to Bird’s data provided by Owrang.
Bird Global Inc. filed for Chapter 11 Bankruptcy in the U.S. Bankruptcy Court for the Southern District of Florida on Dec. 20, 2023. The move comes two years after a quarterly fiscal report showed the company’s revenue reached $60 million, a 36% increase above its expectations, according to Bird’s website.
"We are making progress toward profitability and aim to accelerate that progress by right-sizing our capital structure through this restructuring,” said Michael Washinushi, Bird Interim CEO, in a press release.
The company plans to maintain its services and will be able to do so after it enters a comprehensive restructuring support agreement, giving it access to $25 million in new debtor-in-possession financing from MidCap Financial and the company’s existing second-lien lenders, according to the release.
The company has partnered with more than 350 cities worldwide, according to its website.
Compared to similar-sized cities, Redwood City’s daily use per scooter is nearly twice the national average, according to Bird’s data provided by Owrang.
The contract between Bird and the city began in July of 2022, part of the city’s effort to manage traffic congestion and support equitable and sustainable transportation around the city, according to the city’s website.
“We have regulations that they need to follow such as rebalancing the scooters, addressing public requests, keeping a maximize fleet size of 400 scooters that the city set,” Owrang said. “From the city’s standpoint, it has been a very good vendor.”
The company also collects stray scooters that may be obstructing walking and vehicle traffic, she added.
How it works
Riders can download the Bird app on their smart devices to find the nearest scooter, which can be reserved up to 30 minutes in advance. To start a ride, users will need to scan a QR code on the scooter, and will be able to pay for the ride through the app, according to Bird’s website.
