Ford’s e-scooter share start-up, Spin, is pulling out of Germany, Portugal and Spain, as well as a number of US markets, citing, “an uncertain operating environment.” CEO Ben Bear said it was hard to see how to attain profitability in open permit markets where multiple firms can operate with no cap on fleet sizes.
Writing on Spin’s website, Bear said that the decision would affect around a quarter of staff.
“Spin will no longer compete in open permit markets that lack sensible regulations,” he said.
“These places have permit market dynamics that make it difficult to identify a clear path to profitability. We found that these free-for-all markets create an uncertain operating environment — marked by frequent changes in competitive landscape, no caps on fleet sizes, and race to the bottom pricing.”
Spin will now focus on limited vendor markets, including the UK where it currently operates schemes in Basildon, Braintree, Brentwood, Chelmsford, Colchester and Milton Keynes.
“After this restructure, 100% of our focus will be on markets where cities or campus officials select partners through a competitive procurement process,” said bear. “We see double the revenue per vehicle in limited vendor markets compared to open permit markets and are able to offer a better quality service to riders and cities.”
- Spin launches remotely controlled three-wheeled e-scooters in bid to combat parking issues
- Spin to use Thunderbirds-style e-cargo bikes to manage e-scooter operations