Electric Scooter Startup Bird Raises $275 Million In Latest Funding Round
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Bird, an electric scooter rental company, said on Thursday it had raised $275 million in a funding round led by Canadian pension fund CDPQ and Sequoia Capital, as it looks to take a bigger share of a rapidly growing transportation sector.
The deal values the firm at $2.5 billion before the investment, Chief Executive Officer Travis VanderZanden told a tech conference in San Francisco.
VanderZanden said Bird has been working hard to improve its financials, deflecting criticism that the company has been chasing growth at all costs.
The company has designed its own rugged scooters, which last about 15 months on average, compared with the three-month life span it got from retail scooters, he said.
Bird, known for its dockless scooters that riders can locate and unlock through a smartphone app, has enjoyed a stratospheric rise, while also causing mayhem in cities such as San Diego and San Francisco.
It has raised the ire of regulators and residents because the scooters, which can be left anywhere, have littered sidewalks and parks and blocked driveways and doorways. Scooter riders on crowded sidewalks have also caused problems.
A dozen electric scooter companies have received more than $1.5 billion in investments in total, according to a report issued earlier this year by Boston Consulting Group.
Questions & Answers
Q.Which entities led this latest funding round for Bird?
Which entities led this latest funding round for Bird?
The recent funding round for Bird was led by the Canadian pension fund CDPQ and Sequoia Capital. This investment contributes to their efforts in expanding their presence within the rapidly growing transportation sector.
Q.What is Bird's valuation before this new investment?
What is Bird's valuation before this new investment?
Before this latest investment, Bird was valued at $2.5 billion. Chief Executive Officer Travis VanderZanden shared this figure at a tech conference in San Francisco, indicating the company's financial standing.
Q.How long do Bird's custom-designed scooters last compared to retail ones?
How long do Bird's custom-designed scooters last compared to retail ones?
Bird's custom-designed scooters last approximately 15 months on average. This is a significant improvement compared to the three-month lifespan the company experienced when using retail scooters for their service.
Q.What issues have Bird's scooters caused in cities?
What issues have Bird's scooters caused in cities?
Bird's dockless scooters have caused issues in cities like San Diego and San Francisco, including littering sidewalks and parks, and blocking driveways and doorways. Riders on crowded pavements have also created problems.
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