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Why Bird's Business Model is so successful?

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Bird’s Company Overview


Bird Rides Inc., commonly known as Bird, is an American micro-mobility company based in Santa Monica, California. Founded by Travis VanderZanden in 2017, Bird specializes in electronic scooter sharing and aims to provide a solution to the last-mile transportation problem in urban areas. The company is dedicated to reducing car usage, traffic, and carbon emissions by offering a sustainable alternative for short-distance travel. Bird operates in over 100 cities globally and has an impressive fleet of electric scooters that are accessible via a user-friendly mobile app.

Business Model:

Bird's business model is centered around the shared economy concept, specifically focusing on shared mobility. The company offers dockless electric scooters that users can rent on a short-term basis. The scooters are unlocked and paid for using the Bird mobile app, which charges users per minute of use. The model is designed to be convenient and efficient, allowing users to pick up a scooter from any location and leave it at their destination. Bird also operates a platform called Bird Platform, which allows independent operators to use Bird's technology to manage their own fleet of scooters.

Revenue Model:

Bird's primary source of revenue comes from the per-minute charges it levails on the users for renting its electric scooters. The company charges an initial fixed cost to unlock the scooter, followed by a variable cost based on the duration of use. Additionally, Bird generates revenue through its Bird Platform by charging a service fee to independent operators who use Bird's technology to manage their own scooter fleets. In some cities, Bird also sells its scooters directly to consumers, providing another stream of revenue for the company.

https://www.bird.co/

Headquater: Santa Monica, California, US

Foundations date: 2017

Company Type: Private

Sector: Transportation

Category: Mobility

Digital Maturity: Digirati


Bird’s Related Competitors



Bird’s Business Model Canvas


Bird’s Key Partners
  • Angel investors
  • Venture capital firms
  • Local entrepreneurs
  • City governments
  • Uber
  • Lyft
  • Investors
Bird’s Key Activities
  • Product development
  • Software development
  • Network deployment
  • Operations
  • Maintenance
  • Charging
  • Legal
  • Marketing
Bird’s Key Resources
  • Electric scooters
  • App
  • Platform
  • Charging service
  • Network of chargers
  • Partnerships
  • Scooter fleet
  • 24/7 customer service
  • Safety features
  • Employees
  • Technology
  • Data
  • Big Data
  • AI
  • Machine Learning
  • Cloud computing
  • Internet of Things
  • Analytics
  • Its own operating system
Bird’s Value Propositions
  • It’s a fun and exhilarating way to get around the city
  • Bird is an environmentally friendly last mile transportation solution
  • Birds are charged overnight and placed back out in the community every morning
  • They're a convenient and affordable way to travel short distances
  • Birds are available in your city day and night
  • Birds are trackable via GPS
Bird’s Customer Relationships
  • App-based
  • On-demand
  • Self-service
  • Community
  • Brand awareness
  • Social responsibility
Bird’s Customer Segments
  • Urban commuters
  • City dwellers
  • Tourists
Bird’s Channels
  • App Store
  • Google Play
  • Social media
  • Website
  • Blog
Bird’s Cost Structure
  • Byrd pays for maintenance and repairs
  • Operation
  • Insurance
  • Legal
  • Fleet management
  • Staff
  • Customer service
  • IT infrastructure
  • Product development
  • Marketing
Bird’s Revenue Streams
  • It charges $1 to start a ride and an additional $0.15 per minute traveled
  • Charging and maintenance services
  • It pays $5 to $20 per scooter per day to charge them

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Bird’s Revenue Model


Bird makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Pay as you go
  • Access over ownership
  • Collaborative consumption
  • On-demand economy
  • Sharing economy
  • Transportation as a Service (TaaS)
  • Digital transformation
  • Mobile first behavior
  • Technology trends
  • Self-service
  • Customer data
  • Sustainability-focused
  • Combining data within and across industries
Analytics


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Bird’s Case Study


Bird's CASE STUDY

Bird's CASE STUDY

Introduction

Since its founding in 2017, Bird Rides Inc. has emerged as a trailblazer in the micro-mobility sector. Born out of a need to address the persistent issue of last-mile transportation in urban landscapes, Bird has not only provided a convenient and eco-friendly solution but also disrupted the traditional transportation model. With its headquarters in Santa Monica, California, Bird's journey from a startup to a leader operating in over 100 cities globally presents a compelling case study in innovative business strategy and execution.

The Vision and Inception

Founded by Travis VanderZanden, a former executive at Lyft and Uber, Bird was conceived to bridge the gap between public transportation and final destinations. VanderZanden was inspired by the observation that many urban residents were struggling with the "last mile" problem—the final stretch from a public transit stop to their actual destination. By offering dockless electric scooters accessed via a user-friendly mobile app, Bird proposed a solution that was not only efficient and fun but also environmentally sustainable. According to VanderZanden, Bird's mission is to reduce car usage, traffic congestion, and carbon emissions, providing a greener alternative for short-distance city travel (Bird, 2023).

Bird's Unique Business Model

Bird operates on a shared economy model focused on shared mobility. Imagine leaving your car at home and scooting through city streets without worrying about parking. Bird's electric scooters can be picked up and dropped off at any location, making it as effortless as finding the next nearest Bird scooter using the mobile app. Initially, a $1 fee unlocks the scooter, and subsequent usage costs $0.15 per minute. What further distinguishes Bird is the Bird Platform, enabling independent operators to manage their fleets using Bird's technology. This not only scales operations but also diversifies revenue streams. Bird charges these independent operators a service fee to use the platform, thus generating income beyond the per-minute ride charges.

Revenue Streams and Financial Power

Bird's primary stream of revenue—rider fees—has shown substantial promise. Despite initial skepticism around the profitability of such micro-mobility solutions, Bird reported $95 million in revenue in 2019, demonstrating the viability of their business model (Roy, 2021). Moreover, the Bird Platform has allowed numerous entrepreneurs to contribute to Bird’s revenue and operational efficiency, thereby adding another dimension to its earning sources.

Impact and Innovation

Bird's innovative approach isn't just limited to economic models. By focusing on environmental sustainability, Bird has made significant strides in reducing urban carbon footprints. For instance, Bird scooters have collectively saved 1.1 million tons of CO2 emissions since inception (Bird, 2023). People in cities like Los Angeles, Paris, and Tel Aviv have turned to Bird as a convenient solution, also appreciating the positive environmental impact.

Tackling Operational Challenges

The deployment and management of thousands of electric scooters in urban areas come with its own set of challenges. Operationally, Bird ensures that their fleet is charged, maintained, and strategically placed every morning. By employing "chargers"—people who collect and charge scooters overnight in exchange for payment—Bird effectively handles the logistics of keeping the scooters operational. The maintenance team also steps in for repairs to guarantee safety and reliability, contributing significantly to brand trust and user satisfaction. Legal compliance and partnerships with city governments have also been critical. Through continuous dialogue with local authorities and compliance with regulations, Bird has managed to not only operate efficiently but also contribute positively to the urban transportation ecosystem.

Lessons and Insights

The story of Bird is not merely a narrative of rapid expansion and operational success; it is a case study ripe with lessons for budding entrepreneurs and established businesses alike. 1. Diversify Revenue Streams: Bird’s introduction of the Bird Platform exemplifies how businesses can create multiple income avenues, better safeguarding against market unpredictability. 2. Focus on Sustainability: In today's environment-conscious world, Bird's commitment to reducing carbon emissions has resonated with a broad audience, generating both goodwill and customer loyalty. 3. Embrace Technological Innovation: With a tech-driven approach, leveraging AI, big data, and cloud computing, Bird maintains a robust operational framework, essential for scaling efficiently. 4. Community and Government Collaboration: By cooperating closely with city administrations, Bird has been able to navigate regulatory landscapes effectively, ensuring sustainable operations that benefit both the company and the community.

Conclusion

From its cutting-edge technology to its sustainability-focused mission, Bird exemplifies what it means to innovate within an established industry. This case study serves as a testament to how visionary thinking, coupled with robust execution, can transform urban mobility. As Bird continues to soar, it paves the way for a greener, smarter future in urban transportation.

References

- Bird. (2023). Company Overview - Bird. Retrieved from https://www.bird.co/ - Roy, A. (2021). How Bird Scooters Can Make Money Despite Early Losses. Forbes.


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