Scooter rental service Bird has acquired its competitor, Scoot, the two companies announced on Wednesday.
Scoot is one of two companies that has been permitted to rent scooters in the city of San Francisco under a pilot program.
Scoot was last valued at $71.5 million.
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On-demand scooter service Bird has acquired Scoot, the two companies announced on Wednesday. Scoot has been one of the only scooter rental companies allowed to operate in San Francisco after the city began cracking down on usage of the rentable two-wheeled vehicles last year.
The companies did not disclose the terms of the deal, but Scoot was valued at $71.5 million in October 2017, according to Pitchbook. Scoot will continue to operate as a wholly owned subsidiary of Bird. The news comes after TechCrunch reported earlier this month that Bird was in talks to acquire the scooter startup.
The rental scooter trend has boomed over the last year, with startups like Bird and Lime as well as transportation titans like Uber and Lyft offering services that allow users to rent two-wheeled vehicles with their smartphones. The acquisition will give Bird a bigger presence in San Francisco, considering Scoot is one of two scooter rental firms allowed to operate in the city.
The San Francisco Municipal Transportation Agency launched a pilot program last October that put more than 1,200 electric scooters from Scoot and rival Spin in the city. The program came after the city cracked down on scooter usage following complaints about the vehicles blocking sidewalks and renters riding in the public’s right-of-way. While companies such as Uber, Lyft, and Bird all applied for permits to rent electric scooters in the city, only Scoot and Spin were chosen.
Bird has since worked around this obstacle by renting out its …read more
Source:: Business Insider