Micromobility startup Bird plans to go public via SPAC

US-based electric scooter and Moped startup Bird is reported going public via SPAC. Many micromobility startups are following the lead of EV companies by going public via mergers with SPACs (special purpose acquisition companies).

Bird Rides is planning to merge with Dallas-based blank-check company Switchback II Corporation. Switchback was founded in 2019 and led by former executives at oil and gas driller RSP Permian, Scott McNeill and Jim Mutrie.

Bird is the second scooter company in 2021 to opt for the trendy SPAC tool. Helbiz, a micromobility startup operating in Europe and the U.S., became a public company via SPAC in a merger with GreenVision Acquisition Corp. It is expected that more such companies will take the SPAC route as many micromobility companies faced a ridership fall during the pandemic. This way they can easily get access to capital faster, without the time or expense of a traditional IPO process. 

Bird has been raising US$ 100 million since last year in convertible debt from its existing investors. The debt could be converted into stock, but the company hasn’t confirmed the deal yet. Bird was valued at US$ 2.85 billion at the beginning of 2020. During the pandemic, its revenue dropped to US$ 95 million in 2020. Moreover, the company had to lay off 406 employees (about 30% of its workforce) to cut costs.

With this merger, Bird is likely to use the capital to pay off its debts as well as fund its European expansion. It will reportedly spend US$ 150 million to double its European operations by expanding to 50 new cities. 

The pitch deck of Bird revealed that it expects to achieve profitability by 2023 after covering this year’s losses to US$ 96 million. It will need to make US$ 815 million in revenue in 2023 to be profitable. Bird is expecting to earn a revenue of US$ 188 million this year. 

About Bird

Founded in 2017 by Travis VanderZanden, Bird designs a vehicle sharing platform that provides affordable transportation solutions to people worldwide. Bird’s platform coordinates with cities to provide shared personal electric vehicles that can be picked up and dropped off anywhere. It aims to enable users to receive sustainable and environment-friendly local transport. The company recently won a permit to operate in New York City’s pilot e-scooter program. Bird Rides is headquartered in San Francisco, U.S.

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