Ford Motor Company is acquiring Spin — which is a San Francisco-based dockless electric scooter company — for a reported $100 million as reported by Axios. And Spin CEO and founder Euwyn Poon said that Ford is planning to invest around $200 million in Spin to accelerate growth going forward. Preliminary reports estimated that the deal was valued at more than $40 million.
Spin provides customers an alternative for first- and last-mile transportation. And Ford said that this was a strategic move to build a mobility portfolio in helping customers get more places easier, quicker, and less expensively.
Earlier this year, Ford launched a division within Ford Smart Mobility called Ford X. Ford X is aiming to quickly build, acquire, and pilot new transportation products and services. And the most successful of the projects will become a part of Ford’s mobility offerings. For example, Jelly scooters were launched following a micro-mobility academic research project between Ford and Purdue University.
“Spin adds an exciting new offering to Ford’s mobility portfolio as we try to help our customers get places more easily, more quickly and less expensively. Using a Spin electric scooter costs $1 to rent and 15 cents per minute,” wrote Ford X Vice President Sunny Madra in a blog post. “Affordability, combined with ease of use and electrified power, also means scooters can help tackle challenges such as traffic congestion, parking availability and pollution. This presents a significant opportunity as research shows nearly half of all trips made in the U.S. are 3 miles or less, according to ‘The Micro-Mobility Revolution,’ a report by Populus.”
Ford is not the only Michigan-based automaker to be getting heavily involved in the electric bike market. General Motors said it is going to start selling two electric bicycles in 2019.
Currently, Spin is allowed across 13 US cities and campuses, including Charlotte, Coral Gables, Detroit, Denver, and Long Beach. And Spin is now aiming to hit 100 markets in the next 18 months.