Micromobility operator Spin, a subsidiary of Tier Mobility, will exit 10 markets to improve its financial outlook, a company spokesperson confirmed in an email Wednesday. TechCrunch first reported the news Monday.
The affected markets 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 TechCrunch, Spin CEO Philip Reinckens said the company decided to exit those markets due to low consumer demand, regulatory concerns and unsustainable operating costs.
“Unfortunately, our analysis showed that these markets are not currently conducive for us to operate a sustainable business. Discontinuing operations in these locations will allow us to focus our efforts on growing markets that provide the best financial outlook for the company in 2023,” the company spokesperson said in an email.
Spin left the Canada and Seattle markets in October, laying off about 10% of its workforce.
Several other micromobility companies, including Bird and Revel, have exited U.S. markets this year. Bird, Lime, Spin and others have largely blamed changing travel behaviors, new restrictions on micromobility use, market competition and broader economic concerns, such as inflation and less available venture capital funding, for their financial struggles. Bird, Superpedestrian, Voi and others have also laid off staff to rein in costs.
Micromobility service operators may see their financial performance improve as ridership approaches pre-pandemic levels. But, according to Spin, it’s too early to know.
“It’s impossible for us to predict the future in such a new industry,” the company spokesperson said.
