Annapolis Bird scooters to keep going

Company to remain in operation despite bankruptcy announcement, city says

Electric scooter company Bird Global announced Wednesday that it has filed for bankruptcy protection in an attempt to stabilize its wobbly finances.

The move marks a sobering comedown for a formerly high-flying startup that was trying to make it easier to get around big cities in an environmentally friendly way with its fleet of electric scooters. The concept attracted about $500 million in investments from prominent Silicon Valley venture capital firms such as Sequoia Capital and Accel Partners before becoming a publicly traded company in 2021.

In May 2022, the company became the city of Annapolis’s official scooter. The launch was tied to a strategic mobility plan implemented after the old Hillman Garage was demolished, and the city lost several hundred downtown parking spaces for more than a year.

Although some of those transportation alternatives have wound down, Bird has remained in operation. In a July press release, the city described its relationship with the company as “financially self-sustaining’ and said the service “will remain in operation.”

In the wake of the announcement, Bird representatives have assured the city that this will not impact the operations of the city’s fleet, Mitchelle Stephenson, city spokesperson, said Thursday.

“Bird will operate as usual during this process, maintaining the same service for its riders and upholding its commitments to partner cities,” the company announced in a news release, with a spokesperson adding, “I can confirm this is true for Annapolis, and Bird looks forward to continuing to serve the city and residents of Annapolis.”

Mayor Gavin Buckley has remained a strong supporter of the scooters, which have been a source of frustration for some residents, for example, when riders abandon them in the middle of sidewalks. Riders, in turn, have complained about geofencing settings that prevent the Bird vehicles from operating near the U.S. Naval Academy and other sensitive areas of Annapolis.

In Baltimore, Bird scooters had to fly the coop in August after the city declined to offer a permit renewal, citing four citations the company received. Micromobility rivals Spin and Superpedestrian received the nods instead.

Now, the Miami-based company finds itself struggling to survive after losing more than $430 million since the end of 2021.

Bird has lined up $25 million in financing from MidCap Financial, a division of Apollo Global Management, as it tries to reorganize under Chapter 11 bankruptcy protection in

Florida.

Michael Washinushi, Bird’s interim CEO, predicted the company will be able to bounce back and continue its “mission to make cities more livable” by providing vehicles that don’t clog the roads nor burn fuel. But investors seemed doubtful as Bird’s stock lost nearly 80% of its remaining value Wednesday to close at 8 cents per share, a far cry from its price of about $154 at the end of 2021.