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Micromobility operator Spin, a subsidiary of Tier Mobility, will exit 10 markets to improve its financial prospects, a company spokesperson confirmed in an email Wednesday. TechCrunch first reported the news on Monday.
Markets affected include Atlanta. Bakersfield, California. Cleveland; Detroit; Fort Pierce, Florida; Los Angeles; Kansas City, Missouri; Omaha, Nebraska. Miami and Wichita, Kansas.In a letter to employees obtained by TechCrunchSpin CEO Philip Reinckens said the company has decided to exit these markets due to low consumer demand, regulatory concerns and unsustainable operating costs.
“Unfortunately, our analysis showed that these markets are not conducive to running a sustainable business today. We can focus on growth markets that offer the best financial prospects for the company,” a company spokesperson said in an email.
Spin pulled out of the Canadian and Seattle markets in October, laying off about a few people. 10% of employees.
Several other micromobility companies including bird When level, withdrew from the US market this year. Bird, Lime, Spin and others say that broader economic concerns such as changing travel behavior, new restrictions on the use of micromobility, market competition, inflation and less available venture capital funding will affect their economies. accused of being a major cause of financial difficulties.Bard, Superpedestrian, Voi, etc. lay off staff keep costs down.
Micromobility service operators may see improved financial performance. Passenger numbers approach pre-pandemic levelsBut according to Spin, it’s too early to know.
“It is impossible to predict the future in such a new industry,” said a company spokesperson.