Micromobility companies rode through rough times last year. What’s ahead for 2024?

For some private-sector providers of shared bikes and scooters, 2023 was a year of reckoning, leaving them to face the harsh reality of financial losses, venture funding drying up and bad decisions by both the companies and the cities they contracted with, industry experts told Smart Cities Dive.

“A lot of these companies have received tremendous amounts of funding and very high valuations,” said Kersten Heineke, a partner at McKinsey & Co. who co-leads the McKinsey Center for Future Mobility.But the funding environment changed last year, with venture deals at a six-year low and funding down 42% year over year, according to CB Insights, a technology business analytics firm. As a result, some micromobility companies resorted to layoffs or pulled out of certain markets, Heineke said. Bird experienced the most high-profile turmoil, with the company filing for Chapter 11 bankruptcy in December.

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