Spin electric scooter service suspended in Sacramento, other U.S. markets. Here’s why
Spin electric scooters notified riders that it is suspending services starting Thursday in Sacramento and nearly all its open permit markets as part of a company strategy to make the service more profitable.
The accounts of Spin e-scooter riders will remain active while the service is suspended, according to an email to riders from Spin, which is based in San Francisco and owned by the Ford Motor Company. Spin riders were asked to reply to the email if they would like to request a refund, but company officials said “we look forward to serving your transportation needs at any of our active markets.”
Spin e-scooters served markets in more than 70 cities and college campuses, including West Sacramento and Sacramento State University. The company’s CEO says Spin is shutting down operations in a few U.S. markets and all of its markets in Germany and Portugal, followed by an expected closure of operations in Spain next month.
In January 2020, Sacramento State announced a partnership with Spin, making the university at the time the second California campus, and the first in the California State University system, to offer the scooters to riders. The partnership deployed up to 200 Spin scooters on campus.
On Thursday, company officials said it was working with its partners to wind down Spin operations in an orderly manner. Spin spokeswoman Sara Dodrill said they are shutting down operations in Sacramento, West Sacramento and at Sacramento State University.
Spin riders with active accounts can view their balance by opening the Spin app on their digital device and clicking the menu button on the upper-left corner of the screen. It was unclear if, where and when the e-scooter service will be restored.
“We’ve enjoyed serving your community and hope to be back in the future,” Spin officials wrote in the email to riders.
Spin employees were notified last week that the company was beginning to exit nearly all open permit markets globally to accelerate its “path to profitability,” Spin CEO Ben Bear wrote in an announcement posted online Jan. 7.
The decision to restructure the company impacts roughly a quarter of Spin employees, who were offered severance packages and an additional stipend that may be allocated for outplacement services. Employees issued company laptops were allowed to keep them to help them find their next job opportunity, Bear said.
In an email to The Sacramento Bee, Spin company officials said they are working closely with city officials “to ensure an orderly wind down of operations and will provide refunds to riders.”
This story was originally published January 13, 2022 at 12:31 PM.
