Hubless transportation is a space that I’ve been fascinated by since 2011, when I first met with Michael Keating at Scoot Networks. Michael pitched me on creating a network of electric Vespa-like scooters in SF, and has since built a very valuable service in the city. That early idea convinced me that hubless vehicle services (cars, bicycles, and other vehicles) could potentially be as disruptive as the invention of the automobile. It has been a long time since that first meeting in 2011, and I have been chasing this trend, trying to find the “right” opportunity for CRV. I am super excited today to announce that we are investing in Bird!
So why Bird?
An estimated half of all trips in the U.S. are under three miles, and these trips are not well served by existing transport options (walking, rideshare, driving, public transport) for cost and convenience reasons. However, when surveying the space in 2011, I didn’t have conviction on what form factor of vehicle could have a big impact on human transportation globally.
I closely followed the wave of shared pedal bikes that took China by storm in 2016, and watched as these companies launched in the U.S. last year. I met with many of them, and while I was intrigued by their early traction, I wasn’t confident that non-electric bikes were the best option for the U.S. consumer and the global markets.
In late 2017, we saw a new explosion of opportunities in the hubless vehicle space. I was excited by the emergence of electric bicycles (Jump) and scooters (Bird), as I knew that they would have broader appeal than pedal bikes. Both the electric component and the scooter form factor make for a much more approachable and enjoyable user experience, and also increase both the pool of potential consumers and the range of trips that the vehicles can be used for.
After spending time in Santa Monica after Bird’s initial launch, we were excited to see that the scooters were making a significant impact on consumer transport habits. Bird soon became a crucial part of the daily routine for a large group of commuters, many of whom use the product daily (if not more often). We also started to see users adopt Bird for fun trips with friends and family, contributing to the company’s viral word-of-mouth growth. “Birding” literally has become a verb. :-)
When we look at the value proposition of new consumer products, it’s rare to see something that is better, faster, and cheaper than existing options across a wide demographic. Bird has the unique ability to both take market share from existing transport options and expand the market by enabling trips that previously would have been infeasible or inconvenient.
It’s worth noting that there are also several teams going after this market and many have already copied Bird and launched their own scooter. Here at CRV, we invest in teams first, and we couldn’t be more excited to back the Bird team. We are very lucky to have worked with the Bird CEO, Travis VanderZanden when he was at Yammer (a CRV portfolio company). And we have been very inspired and impressed by their mission, their thoughtfulness about the space, their execution, and the organization that they are building. We feel very lucky to have the chance to work with Travis, Paige and the rest of the Bird team to build a hugely impactful company.
Let’s ride!
— Saar Gur
