Spin, the Ford-owned electric scooter company, announced a major restructuring on Friday in which it will pull out of “almost all open license markets.” Specifically, Spin is starting to exit “a few” US, German and Portuguese markets, and it “plans” to close in Spain as early as February.
Going forward, Spin says it will focus on “limited supplier markets,” where only a designated number of scooter companies are allowed to compete in one location, in the United States, Canada and the UK. United. Spin sees ‘doubling revenue per vehicle’ in limited supplier markets, according to Ben Bear, CEO of Spin.
“This decision to restructure is impacting about a quarter of our staff,” Bear said, which appears to mean they will be laid off. Bear said Spin would offer severance benefits to “affected employees”, as well as “an additional allowance that could be allocated to outplacement services.” He added that staff who received laptops from the company will be allowed to keep them.
Bear complained about “open license markets”, which allow several scooter companies to operate in a market. They apparently turned out to be tough competition for Spin. Bear said market dynamics “make it difficult to identify a clear path to profitability.”
Spin was acquired by Ford in 2018. The company announced an aggressive expansion plan in 2019 and expanded to Europe in 2020. After Friday’s announcement, however, it appears the company is focusing on l immediate future.