Bird Shifts Focus From Blitzscaling to Scooter Unit Economics
Bird CEO Travis VanderZanden discusses the company's transition from rapid expansion to improving unit economics with its custom Bird Zero scooters, while also addressing concerns about seasonal revenue drops.
Bird showcases its electric scooters at the Upfront Summit in Malibu, where founder and CEO Travis VanderZanden participates in a fireside chat with investor Mark Suster. The discussion highlights Bird's rapid growth, as the startup reportedly brings in over $250 million in a 12-month period and pursues a new $300 million funding round at a $2.3 billion valuation.
VanderZanden acknowledges that the early Alibaba-imported scooters are fragile and lack sustainable unit economics, but explains this was a necessary test under the "Blitzscaling" philosophy to beat copycats. Now, the company focuses on profitability with the Bird Zero, a custom scooter featuring a digital screen, a tougher exterior, and improved battery life that delivers dramatically better unit economics.
Regarding weather-dependent revenue concerns, VanderZanden expresses no worry about seasonality and claims Bird maintains a $100 million revenue run rate even during the winter. He emphasizes that 2018 is about scaling the business, while 2019 is about really focusing on the unit economics of the operation.