Spin Scooters: New CEO, E-bikes & Ford's City Strategy

Spin Announces New Leadership and Expansion Plans

Spin, the micromobility company owned by Ford, has recently appointed a new Chief Executive Officer and unveiled a revised strategy aimed at increasing its market presence. Furthermore, the company intends to re-enter the bike-sharing sector, this time focusing on electric bikes.

Leadership Transition and Market Strategy

These developments indicate that Spin is actively seeking the most effective approach to surpass competitors and achieve profitability. Effective Thursday, co-founder Derrick Ko will transition to a strategic advisory position, alongside fellow co-founders Zaizhuang Cheng and Euwyn Poon. Ben Bear, formerly Spin’s Chief Business Officer (CBO), has been named the new CEO.

Alongside this leadership change, Spin is initiating the deployment of e-bikes, expanding its operations to numerous cities across the U.S. and Europe. The company is also integrating new technologies and positioning itself to challenge Bird for the position of the second-largest e-scooter provider in the nation, trailing Lime.

Increasing Pressure for Profitability

The demand for micromobility operators to demonstrate profitability is growing. Consequently, Spin is emphasizing its strong record of compliance to secure valuable vendor permits. The ultimate objective is to establish more exclusive, and potentially more profitable, partnerships with municipalities.

Reports suggest that Ford is considering separating Spin as an independent entity, potentially through a sale or spin-off. This raises questions about the direction the new CEO will take the company.

Growth and Focus on Limited Vendor Permits

“We are aggressively expanding our hiring efforts and have ambitious growth objectives for this year, extending into 2022 and beyond,” Bear stated to TechCrunch. “We believe the market is reaching a critical point where cities are increasingly adopting limited vendor permit systems, which aligns perfectly with our historical focus.”

(Spin declined to comment on the reports regarding a potential divestment by Ford.)

Evolving City Regulations

Many cities have transitioned from unregulated to open markets, and increasingly, are implementing limited vendor permits, as seen in Atlanta and Washington, D.C. Spin anticipates this trend will continue, leading to exclusive vendor agreements, similar to the arrangement Lyft-owned Citi Bike has with New York City.

This could involve targeting mid-sized cities offering lower fees, or even providing financial incentives for Spin to operate within their boundaries.

Securing Funding and Partnerships

“In Bakersfield, we recently secured a $1.1 million state grant for infrastructure development and program implementation, supplemented by $257,000 from the city to ensure project support and affordable rides for residents,” Bear explained.

In Grand Rapids, Spin is collaborating with non-profit organizations to integrate scooters into the public transportation network. Similarly, in Pittsburgh, the company has integrated its services with the city’s public transit app to create a seamless multi-modal transportation experience.

“We view ourselves as an integral part of the broader transportation ecosystem, including public transit,” Bear added.

Market Performance and Expansion

Spin reports an 85% success rate in securing new U.S. markets and a 93% renewal rate. However, the company has experienced setbacks, losing permit bids in major cities like New York City and Paris. Currently, the majority of Spin’s nearly 100 U.S. markets consist of mid-tier cities and university campuses.

The company plans to expand into up to 25 additional U.S. markets this year, with further expansion planned for Portugal and Ireland.

Exclusive Partnerships and Fleet Diversification

According to Bear, over 70% of Spin’s nearly 100 markets in the U.S. and Europe operate under exclusive vendor agreements. He attributes this success to Spin’s reputation for prioritizing safety, compliance, and equitable service, making it a trusted partner for cities.

To achieve a dominant position in urban micromobility, Spin recognizes the need for a diverse fleet. This has led to the introduction of electric bikes.

Rollout of Electric Bikes

Spin announced plans to deploy up to 5,000 e-bikes this year, beginning on June 14th in Providence, Rhode Island. E-bikes, alongside e-scooters, will also be introduced to recently secured markets, including Fort Collins, Colorado; Bakersfield, California; and Penn State University – all of which are exclusive partnerships.

From Bike Share to E-Scooters and Beyond

Spin initially launched as a pedal bike-sharing service in 2017, pivoting to e-scooters the following year. The company is somewhat late to the e-bike market compared to other major micromobility players. Bear explained that Spin deliberately delayed the introduction of e-bikes until the technology matured and offered a compelling user experience comparable to its e-scooters.

However, this cautious approach could potentially hinder the success of its e-bike program if the initial offerings do not meet expectations, given that competing e-bikes have undergone multiple iterations of real-world testing.

Technological Innovations

Beyond e-bikes, Spin is investing in technological advancements. The company has partnered with computer vision startup Drover AI to launch Spin Insight Level 2, a system utilizing sensors, cameras, and onboard computing to detect sidewalk and bike lane riding and verify proper parking.

This new capability was first deployed on Wednesday with 100 Drover-tech equipped e-scooters in Milwaukee, with plans to expand to Miami, Seattle, and Santa Monica. Notably, last month, Bird was removed by the Santa Monica City Council in favor of Spin, Veo, and Lyft, and will be required to remove all of its scooters from its hometown by July.

Introducing the S-200 Adaptive Scooter

Seattle and Santa Monica, along with Boise, Idaho, will also be testing Spin’s new S-200, a three-wheeled, adaptive sit-down scooter. This vehicle was developed in collaboration with mobility startup Tortoise, whose repositioning software enables remote operators to move vehicles off sidewalks and into designated parking areas, as well as rebalance the fleet.

This article has been updated to reflect the uncertainty of which micromobility company, Bird or Lime, retains the top position in the United States.