The City of Santa Monica has $300,000 more in its coffer thanks to a legal settlement with scooter-share startup Bird.
Bird: The Scooter-Share Startup
In September 2017, Bird — a startup that recently enjoyed a $15 million fundraising round — hit Santa Monica’s scene. Similar to bike- and car-share operations, folks can rent a motorized scooter from a designated station for $1 plus 15 cents a mile. The only requirements: A valid driver’s license and a helmet.
The Legal Conflict: Santa Monica v. Startup Bird
Legal tangos are a ubiquitous part of the startup experience, and Bird found itself dancing with the City of Santa Monica.
According to reports, Bird neglected to secure the proper Santa Monica business licenses. Moreover, the city accused the startup of flouting citations.
To shorten a long story: Santa Monica filed an action against Bird, lawyers negotiated, and the parties settled. Ultimately, Bird agreed to pay the City of Santa Monica $300,000 in penalties.
The city’s deputy attorney explained:
“With this agreement, Bird and [CEO Travis] VanderZanden acknowledge that they failed to comply with the City of Santa Monica’s business licensing requirements, which are designed to protect the safety of the public. Bringing this new business into compliance with local law achieves a fair and positive outcome for the people of Santa Monica.”
For its part, a Bird spokesperson enthused:
“We are pleased that Bird and the city of Santa Monica were able to work out our differences regarding licensure. Bird now starts fresh with the city, and we look forward to continuing to provide a safe, environmentally friendly transportation solution to the people of Santa Monica.”
Connect With A Santa Monica Startup Lawyer
Are you a startup in Santa Monica, or a business planning to expand into Santa Monica? If you’re in search of an attorney, we’re here to help. Our team will make sure you secure all the necessary licenses and are legally compliant on all fronts — from marketing rules to online regulations to intellectual property protection.
Get in touch with our Santa Monica startup firm today. Let’s explore your options, and make sure you’re operating on the right side of the law.Connect With A Santa Monica Startup Lawyer ❯