Ford divests its e-scooter business to a SoftBank-backed European competitor.

• The carmaker stated that the merger is necessary to gain the scale needed in the competitive micro-mobility industry.
• In November, Tier acquired the German bike-sharing platform NextBike, and in December, it bought the Italian subsidiary of Wind Mobility, Vento Mobility.
• Tier, led by CEO Lawrence Leuschner, is now the largest multimodal micromobility operator globally in terms of cities and vehicles, according to CNBC.

Spin is exchanging its e-scooter business for equity with its German competitor, Tier.

The carmaker stated that the merger is necessary to gain the scale needed in the competitive micro-mobility industry.

In November, Tier acquired the German bike-sharing platform NextBike, and in December, it bought the Italian subsidiary of Wind Mobility, Vento Mobility.

Tier, led by CEO Lawrence Leuschner, is the world's largest "multimodal micromobility operator" with a fleet of 250,000 vehicles in 410 cities, surpassing US rivals Bird and Lime.

Ford Motor Company's VP of new businesses, Franck Louis-Victor, stated that the company is pleased to remain as a strategic investor in Tier and looks forward to their continued growth.

Tier, a Berlin-based company, aims to expand its presence in North America and increase its vehicle count to 300,000 with the acquisition of Spin. Its global reach is expected to grow to over 500 cities in approximately 20 countries.

Ford's wholly-owned subsidiary, Spin, holds approximately 70 licenses to operate its vehicles throughout the United States.

According to Leuschner, the U.S. market is the largest micromobility market worldwide, and there will be a significant resurgence after Covid. He considers the deal a significant victory for Tier.

Micromobility companies will find the U.S. market more attractive in the future due to President Biden's new infrastructure plan and the growing interest of U.S. cities in going green.

In October, the business was valued at $2 billion during a series D round, with investors including Goldman Sachs and SoftBank contributing a total of $660 million.

If Tier requires additional funding, Leuschner stated that the company will consider raising capital again if it continues to grow at its current rate. He added that there are currently no plans for an IPO.

Amid industry consolidation, Spin's sale marks a turning point for micromobility companies, many of which are still struggling to achieve profitability.

Amid industry consolidation, Spin's sale marks a turning point for micromobility companies still struggling to profit.

According to Leuschner, there is a reasonable possibility that Tier will be profitable next year on an EBITDA basis. EBITDA represents earnings before interest, taxes, depreciation, and amortization. However, Leuschner did not disclose the company's revenue for the previous year.