AAA Bird swoops in for Scoot

Bird swoops in for Scoot

Scoot, the US-based electric vehicle rental service backed by automotive conglomerate Mahindra Group’s corporate venturing division, Mahindra Partners, has been acquired by peer Bird for an undisclosed sum.

The amount Bird paid was not disclosed, but people familiar with the matter told the Wall Street Journal the deal consisted of about $25m in cash and stock. Scoot was reportedly valued at about $70m in 2017.

Founded in 2011, Scoot operates urban fleets of small electric vehicles such as mopeds, kick scooters and e-bikes that can be hired through its mobile app. It is currently active in San Francisco and in the Spanish cities of Barcelona and Santiago, whereas Bird operates in more than 100 cities across North America, Europe and the Middle East.

Bird’s vehicles include electric-powered kick scooters, as well as a two-seated scooter marketed as a cross between an e-bike and a moped. Scoot’s service will remain distinct while it operates as a wholly owned Bird subsidiary, and the pair plan to expand their range of micro-mobility vehicles and target an increased number of markets.

Scoot had raised a total of $47m prior to the acquisition, according to TechCrunch. Mahindra Partners and investment firm Vision Ridge Capital co-led a 2016 round of undisclosed size that included angel investor Tom Dinwoodie and unnamed existing backers, after $3.6m in equity and converted debt secured two years before, according to a securities filing.

Scoot had received $550,000 in seed capital from angel investors including Tim Young and Jerry Fiddler in 2012, after raising $225,000 from incubator Greenstart and Athos Aramis at an undisclosed date, TechCrunch reported.

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