Source: CNBC
Summary
Bird, a scooter and bike-share company, is seeking $100 million in funding to help pay down around $1 billion in liabilities, according to the company. The nine-year-old company has been struggling financially, and the funding is necessary to avoid bankruptcy.
Our Reading
The announcement sounds ambitious. Bird’s financial struggles are nothing new, and it’s surprising it’s taken this long for the company to seek additional funding. The $100 million is a drop in the bucket compared to the company’s $1 billion in liabilities. This is just another example of a company burning through cash without a clear path to profitability. The fact that Bird has been around for nine years and still can’t seem to get its finances in order is a pretty good indication that the scooter-sharing market isn’t as lucrative as investors thought.
Author: Evan Null
