Bird cracked the last-mile problem with perfect timing. Lithium batteries dropped 89%, smartphones were ubiquitous, and Uber trained people to use apps for transport. They hit 1 million rides in eight months.
What Changed
The math never worked. Scooters lasted 29 days instead of 200+, losing $450 per unit. Vandalism, theft, and injuries piled up. Cities banned them. COVID crushed ridership. Then accounting scandals revealed $31M in overstated revenue from unpaid rides.
Where it Landed
Chapter 11 bankruptcy. Assets sold for $145M — 94% below peak valuation. Investors lost over $1 billion. Zero profitable quarters ever. New owners slashing costs by 66%.
The Principles
1.
Unit economics aren't optional. You can't outrun math with scale — Bird lost money on every scooter and growth only multiplied the losses.
2.
Take chips off the table when times are hot. Travis sold shares early and walked away wealthy despite the company collapsing — paper gains vanish fast.
3.
Slow down to speed up. Lime invested in durable scooters and exited bad markets while Bird burned cash chasing growth — Lime hit profitability, Bird hit bankruptcy.
Builder's Takeaway
3 warning signs your growth is actually a death spiral:
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You're losing money per transaction but saying 'scale will fix it'
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Growth metrics look amazing but cash burn keeps accelerating
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You're fighting regulators instead of building sustainable unit economics
