Ride-sharing has been hit hard by the epidemic, and Bird, an electric scooter start-up, has announced about 30 percent job cuts
The novel Coronavirus pandemic has brought great uncertainty to the economy and the ridesharing industry has clearly felt the epidemic deeply.Start-ups that share and rent electric scooters, such as Bird, have announced job cuts in response to the financial crisis.Of course, after the initial layoff of about 30 per cent of staff, further action may follow.The news comes after a number of start-ups in the industry said they would reduce or cancel services in most markets.
Bird’s chief executive Travis VanderZanden said in a memo that the cuts were aimed at ensuring solvency through 2021.
The laid-off workers will receive severance pay equivalent to four weeks' salary, three months 'health insurance and an additional 12 months of exercisable stock options.
After many governments issued the "shelter in place" directive, most people cut back on non-essential social gatherings and travel, causing the ride-sharing industry to suffer an instant winter.
Besides Bird, Lime, a major competitor in electric scooter-sharing, couldn't think of a better response.In January, the company had cut 14% of its workforce and introduced 12 markets.
A recent Bloomberg report says Lime is cutting 70 employees as a result of the outbreak.Another start-up, Wheels, recently laid off 6% of its staff.