Investors have provided nearly $3 billion of capital to scooter companies Bird and Lime, which are now (apparently) valued at approximately $2.5 billion each. An article in the WSJ reports that these companies are facing pressure to turn a profit as investors lose patience with startups that consistently burn cash. Per the article, weak infrastructure, the consequence of aggressive growth, will pose a challenge:
“Lime and Bird’s ambitious expansions outpaced operations set up essentially on the fly, according to more than a dozen current and former employees. The spotty logistics of their networks have weighed on the companies’ efforts to become profitable and led to safety concerns that this could endanger riders, these people allege.”
The article provides some interesting anecdotes citing challenges with respect to hiring, securing spare parts and maintenance issues.