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‘Ford takes a Spin with US e-scooter company’
Posted on Thursday, 08 November 2018 10:16
According to recent media reports, Ford Motor Company has agreed to pick up two-year-old San Francisco-based electric scooter businesses Spin.
First to cited multiple sources with knowledge of the matter was Axios. The newsletter originally noted the deal was worth USD 40.00 million; however, the article was updated to note that two new insiders suggested the acquisition was valued at closer to USD 100.00 million.
Spin operates e-scooters in states including Washington, Michigan, Florida and California, as well as placing its products in specific cities and having a presence on five college campuses.
The company is one of three businesses that deployed such transportation products in San Francisco back in March, alongside Bird, said to be worth about USD 2.00 billion, and Lime, a start-up that recently entered into a partnership with Uber.
Reuters also picked up on the potential deal, citing a person familiar with the situation as saying Ford will invest about USD 200.00 million in Spin.
However, while the transaction is a significant one for both parties, it is dwarfed by other similar investments in the industry as Bird has attracted USD 400.00 million in funding, while Lime has sounded out USD 450.00 million at a valuation of around USD 4.00 billion.
Ford is said to be adding Spin to its range of future transportation services, which already include autonomous vehicles and on-demand shuttles, which it gained through the purchases of Chariot and TransLoc.
The car manufacturer has plans to expand the target over the next 18 months from 32 markets to more than 100 locations across North America, according to recent media reports that cited Sundeep Madra, head of the automaker’s Ford X start-up incubator.
A Spin scooter costs a single dollar to rent and 15.00 cents per mile and was launched in a bid to tackle the congestion of traffic in some of the majority cities across the US.
Ford is the first vehicle manufacturer to enter the market, commonly known as micro-mobility, due to the smaller size of transportation.
© Zephus Ltd