The still relatively-new electric scooter, or e-scooter, market continues to draw strong investor interest. As the ride-sharing market continues to expand beyond the typical Uber or Lyft drive, e-scooters have taken the reigns as another solution to the last-mile commute. Silicon Valley and Southern California have embraced the e-scooter crazy, which has streets lined with scooters from popular companies like Bird and Lime.
However, it appears the e-scooter market it just getting started. According to Grand View Research, the global electric scooter market is estimated to be worth $41.98 billion by 2030. This represents a compound annual growth rate (CAGR) of 7.6%. The market research firm sees growing interest in green energy, electric transportation, and other renewable energy project across the Middle East, Europe and Asia. Grand View Research sees governments (especially in Asia) continuing to warm up to e-scooters as a method to reduce traffic congestion and meet environment initiatives.
Axios: Bird Raises $300 Million In Series C Extension, Led By Fidelity
A special report from Axios recently disclosed that Bird is raising another $300 million in an extension to its Series C funding round. The funding holds Bird with its existing pre-money valuation of $2 billion. Furthermore, Fidelity Investments was among the top investors in the latest funding raise. Bird representatives did not provide further comment on the report.
This represents the first investment in Bird made by Fidelity, which joins other major private equity/venture capital firms: Sequoia Capital, Accel, CRV, Greycroft, Index Ventures, Craft Ventures, Tusk Ventures, Upfront Ventures, and more. Bird is based out of Santa Monica, California.
Lime Said To Be Looking for $400 Million Investment At $3 Billion Valuation
Bird’s top competitor, Lime, is also reportedly looking for additional funding. The San Francisco-based e-scooter company is reportedly looking to raise $400 million at a $3 billion valuation. Lime has been working on expanding its micro-mobility offers to include bikes and LimePods, “a line of shareable vehicles available in Seattle,” according to TechCrunch.
Lime has done a great job with establishing its services around the world. Bird’s footprint is primarily across North America with only eight international locations. Lime not only has a strong North American presence, but also has locations around the world. The SF-based micro-mobility company also currently has a larger university location offering than Bird.
Overall, Bird and Lime have both been around for only two years, yet have continued to raise funds at increasingly high valuations. With that said, the e-scooter industry has suffered some issues with regards to batteries and overall dependability. While both companies are actively looking to expanding its suite of services and locations, improving dependability and battery durability will have to be a key focus moving forward. These issues are not to be unexpected for early-stage companies growing at such swift pace. With major investors like Fidelity gaining interest in the industry, e-scooter companies continue to see validation.