Bird Exports Its Scooter Business By Licensing To Local Entrepreneurs

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Limited risk, but limited profits: Entrepreneurs in Canada, New Zealand and Latin America can buy Bird scooters to build out their own scooter businesses.

People ride Bird scooters in Santa Monica, California, on July 13, 2018. In the scooter gold rush, Bird doesn’t want to just be the one that strikes gold—it also wants to be the one to sell the picks and shovels to other entrepreneurs looking to strike it rich, too.

On Thursday, the $2 billion company is announcing that it has expanded the Bird Platform to Canada, New Zealand and Latin America. It’s the next step in Bird’s vision to bring scooter-sharing to the world, but it’s a safer route that limits risks and future profits. VanderZanden says the 16-month-old company simply can’t expand into every geographic area at once, so it’s come up with a different strategy to enter foreign markets: partner with local operators and take a share of their success.

Bird’s strategy means scooter businesses in local markets get operated by entrepreneurs who know the city and its regulations. In some areas, riders will still use the Bird app to access the scooters. Other businesses will run their own app or renting schemes, VanderZanden said. To get started, operators have to buy the scooters from Bird, but by doing so, they get to take advantage of the lower prices Bird gets because of the scale of its business.

 

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