Venture capitalists, fearful of missing out on the next major consumer tech hit, have dumped hundreds of millions of dollars into electric scooter startups.
Bird, arguably the leader in the e-scooter industry, has raised $415 million at a $2 billion valuation---an impressive feat given the startup launched just last year.
With gobs of venture capital comes the expectation of growth. And for startups like Bird, and its rivals LimeBike and Spin, that means expanding into as many cities as they can.
But not every city is welcoming this new transportation technology, and Milwaukee currently stands at the forefront of the fight against electric scooters.
On July 6, the Milwaukee City Attorney's office filed a lawsuit against Bird, alleging the startup broke Wisconsin state law by renting unregistered scooters in Milwaukee. The city's lawsuit has now moved to a federal court as Milwaukee orders the company to take its scooters off public streets and sidewalks. The suit also requires Bird to pay a $200 fine for every ride taken on one of its scooters in Milwaukee since June 27. Bird said it has rented its scooters more than 6,900 times, which means the startup would owe the city more than $1.3 million, according to the Milwaukee Business Journal. A date for the case, which will be tried in the U.S. District Court for the Eastern District of Wisconsin, has not yet been decided.
The case is expected to be the first time a complaint against Bird will be argued in court, and it may potentially put in place the legal framework for how Bird could enter new cities going forward.
Milwaukee isn't the only city tapping the breaks on motorized scooters. Nashville impounded all Bird scooters and sued the company in June, though it has since dropped its lawsuit and is working with the startup to regulate the scooters, according to the AP. San Francisco banned electric scooters last month and has required Bird, LimeBike and others to apply for permits in order to operate in the city.
Cities like Milwaukee are worried about how electric scooters will coexist with pedestrians and motor vehicles, as well as the impact of their "dockless" nature. Since the scooters don't have to be locked to bike racks or other structures, some cities have struggled to deal with the clutter that comes from scooters and dockless bikes that are haphazardly left on sidewalks and other public walkways.
Milwaukee Alderman Robert Bauman told the AP that he would consider scooter regulations if the Wisconsin state law could be changed to legalize and register the vehicles, as well as keep them off sidewalks and only operate on city streets.
Time will tell if and how Milwaukee and other cities ultimately decide to embrace electric scooters. But you can bet that, with hundreds of millions in VC dollars behind it, Bird will do everything it can to operate in as many U.S. markets as possible.
