Ford’s e-scooter Spin Company has decided to renovate and relocate some US cities and European countries where there are more scooters, making it more difficult to make a profit. This move means that the company will be separated from its many employees.
Mu a to announce On Friday, CEO of Spin Ben Bear said the company is starting to roll out almost all open markets, or where several companies are allowed to operate, for e-scooters to advance the “profit margin.” As a result, it has begun to close operates in Germany and Portugal and is expected to be released in Spain in early February. Bear said Spin would also leave several US markets but did not comment further.
The CEO said the markets in these areas “do not have clear rules,”Which in the end it affects its ability to provide superior services to riders and cities.
“This area has market-leading powers that make it difficult to know how to make a profit,” said Bear. “We found that these free markets result in uncertain working environments, characterized by frequent changes in competitive environments, inadequate ship size, and very low prices.”
About 25% of employees at Spin will be laid off by reorganizing the company. They will be provided with separate packages, additional financing for external activities, and permission to store laptops provided by the company.
When the company restructures, Spin will focus on smaller markets, where cities or schools select e-scooters that can work in the area through the advertising process. Bear said the company earns twice as much per car in these markets compared to open markets.
Over the past two years, Spin has undergone significant changes. It shifted its focus to small retail markets, which now represent more than 75% of its history, from 35%. Last June, it removed the CEO of the company and installed Bear as head. At the time, Bear said TechCrunch results to Spin he was hiring “quickly” and had “greater goals.” That plan obviously stands right now.
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