Spin withdraws from Europe, lays off a quarter of workers

Image of the article titled Ford E-Scooter Company Spin is leaving markets

Photo: Eva Hambach / AFP (Getty Images)

Ford e-scooters Spin has decided to restructure and leave some US cities and European countries where there are apparently too many scooters, making it difficult to turn a profit. This move means that the company will be separated from a large number of its employees.

in a advertisement Spin CEO Ben Beer said Friday that the company is beginning to exit nearly all open permit markets, or those in which many businesses are allowed to operate, for e-scooters to accelerate its “path to profitability.” As a result, it has begun to shut down Operations in Germany and Portugal are expected to withdraw from Spain as early as February. Beer said Spin will also leave some US markets but did not provide details.

The CEO said that markets in these areas “lack reasonable regulations,” Which finally impact Its ability to provide high quality service to passengers and cities.

“These places have market dynamics that make it difficult to set a clear path to profitability,” Beer said. “We have found that these free-to-all markets create an uncertain operating environment – ​​characterized by frequent changes in the competitive landscape, no restrictions on fleet sizes, and the race to the lowest prices.”

Nearly 25% of Spin’s employees will be laid off during the company’s restructuring. They will be offered severance packages, an additional bonus for external services, and permission to keep their company-issued laptops.

After the company’s restructuring, Spin will focus entirely on the limited seller markets, where cities or campuses Select e-scooters that can operate in an area through the bidding process. Bear said the company gets double the revenue per vehicle in these markets when compared to open permit markets.

Over the past two years, Spin has made big changes. It shifted its focus to limited sellers markets, which now account for more than 75% of its portfolio, up from 35%. Last June, it removed the company’s founding CEO and appointed Bear as president. Bear said at the time Take Crunch to spin She was hiring “at full speed” and had “ambitious growth plans”. Obviously, those plans are on hold for now.

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