Spin, the e-scooter company owned by Ford, announced on Friday a major restructuring that will pull it out of “almost all open approval markets”. Specifically, Spin is beginning to exit “some” US markets, Germany and Portugal, and “project” a closure in Spain as early as February.
Going forward, Spin says it will focus on “limited supplier markets” where only a certain number of scooter companies in one location in the US, Canada and the UK are allowed to compete. According to Ben Bear, CEO of Spin, Spin sees “double sales per vehicle” in limited supplier markets.
“The decision to restructure affects around a quarter of our employees”
“This reorganization decision affects about a quarter of our employees,” said Bear, which appears to mean a layoff. Bear said Spin will offer severance packages to “affected employees”, along with “an additional grant that can be allocated for outplacement services”. He added that employees who have been issued company laptops will be allowed to keep them.
Bear complained about “open admission markets” that allow multiple scooter companies to operate in one market. They apparently turned out to be tough competition for spin. Bear said market dynamics “make it difficult to identify a clear path to profitability”.
Spin was acquired by Ford in 2018. The company announced an aggressive expansion plan in 2019 and expanded into Europe in 2020. However, following Friday’s announcement, it appears the company is shifting its focus to the immediate future.