Fri. Jan 21st, 2022

Ford e-scooter company Spin is leaving the market 'free for all' and 25% of workers are being laid off.Pictures: Eva Humbach / AFP (Getty Images)

Ford’s e-scooter company has decided to restructure the spin and leave some U.S. cities and European countries where there are apparently too many scooters, making it difficult to make a profit. The move means the company will be separated from its significant number of employees.

In one Announcement On Friday, Spin CEO Ben Bear said the company is starting to move out of almost all open permit markets for e-scooters, or where multiple companies are allowed to operate, to accelerate the “path to profitability”. As a result, it has started to close Operations in Germany and Portugal and expects it to leave Spain in early February. Bear said Spin would also leave some U.S. markets, but did not provide specific details.

The CEO said that the markets in the region lack “reasonable rules,Which In the end Affects Ability to provide a high-quality service to riders and cities.

“These places have market dynamics that make it difficult to identify a clear path to profitability,” Bear said. “We’ve found that free markets create an uncertain management environment for all of these – frequent changes in the competitive landscape, no cap on fleet size, and characterized by low pricing races.”

About 25% of spin employees will be laid off in the restructuring of the company. They will be given an additional stipend for separation package, outplacement services and will be allowed to keep laptops issued by their company.

After the restructuring of the company, Spin will focus on a completely limited vendor market, Where the city or campus Select e-scooters that can operate in an area through a bidding process. Beer said the company gets double the revenue per car This is when compared to the open permit market.

In the last two years, spin has changed significantly. It has shifted its focus to the limited seller market, which now represents more than 75% of its portfolio, from 35%. Last June, it removed the company’s co-founder CEO and replaced Beer as head. At this time the beer said TechCrunch That spin Was recruited “at full speed” and had “ambitious growth plans”. These plans are clearly closed for now.

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