![[US] Micromobility provider Helbiz blames missed payroll on software ‘update’](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-Pisa-Italy--August------446379284_1200x.jpg?v=1649350095)
Helbiz, a shared electric scooter and bike provider operating in the US and Europe, failed to pay its US-based employees last week, The Verge reports.
In an email to employees, the company’s CEO reportedly blamed “an error in our payroll system” and promised each employee a $100 bonus.
“I personally apologize for this mistake and hope you know it does not reflect my knowledge of the value you all provide to the success of this company,” Helbiz CEO Salvatore Palella said in the email, obtained by The Verge.
In another email, head of communications Matt Rosenberg confirmed the missed payroll and said that it only affected the company’s US-based employees. Helbiz employees in other offices were paid on time, Mr Rosenberg said.
“On payroll, there was an update in our payroll system and it caused a delay to meet this cycle. Unfortunately, because it happened before the weekend, it will take a few days to rectify and our employees will be paid this week,” Mr Rosenberg’s email said. “We regret this happened and are working with employees who may need further assistance.”
Helbiz went public last year by merging with a special purpose acquisition company (SPAC) with the intention of raising enough money to expand into other services. After the merger, Helbiz reportedly said its valuation was $408 million, but the company’s stock has since dropped and its market cap now stands at around $92.7 million.
Helbiz has also encountered other hurdles. The company’s full earnings report from 2021, as well as the fourth-quarter report from that year, has been delayed until mid-April 2022; well after most public companies have released their own earnings reports. The US Securities and Exchange Commission stipulates that full-year reports be released no later than 60 days after the end of the fiscal year.
“We were unable to get necessary data from one of our third parties in time to complete our audit so we requested the delay,” Mr Rosenberg said. In addition, he denied any connection between the missed payroll and the delayed earnings report.
Helbiz is known primarily as a micromobility operator but since its SPAC merger, the company has attempted to expand into other offerings, including ghost kitchens and media streaming. In 2021 the company launched Helbiz Media, a new streaming service, striking a deal with Fox Networks Group to be the exclusive distributor of Italy’s Serie B soccer championship in the US and the Caribbean.
Following the news, Helbiz’s share price soared to 97 per cent before eventually sinking to its current price of around $3 a share.
The company has attracted other negative headlines too. Palella, Helbiz’s CEO, was sued last year by a group of investors who claimed they were defrauded into buying the HelbizCoin cryptocurrency as part of a “pump and dump” scheme.
The plaintiffs said Helbiz promised to use proceeds from its initial cryptocurrency offering, which was announced in 2018, to develop a platform allowing users to rent bikes, cars, scooters and flying drone taxis. Instead, Helbiz is alleged to have kept most of the money for itself and, in accepting other forms of currency, effectively killed its own cryptocurrency.
Helbiz’s lawyers say the case is “without merit,” according to reporting by Reuters. The case is still pending in New York district court.
Source: The Verge
(Links and quotes via original reporting)
Helbiz, a shared electric scooter and bike provider operating in the US and Europe, failed to pay its US-based employees last week, The Verge reports.
In an email to employees, the company’s CEO reportedly blamed “an error in our payroll system” and promised each employee a $100 bonus.
“I personally apologize for this mistake and hope you know it does not reflect my knowledge of the value you all provide to the success of this company,” Helbiz CEO Salvatore Palella said in the email, obtained by The Verge.
In another email, head of communications Matt Rosenberg confirmed the missed payroll and said that it only affected the company’s US-based employees. Helbiz employees in other offices were paid on time, Mr Rosenberg said.
“On payroll, there was an update in our payroll system and it caused a delay to meet this cycle. Unfortunately, because it happened before the weekend, it will take a few days to rectify and our employees will be paid this week,” Mr Rosenberg’s email said. “We regret this happened and are working with employees who may need further assistance.”
Helbiz went public last year by merging with a special purpose acquisition company (SPAC) with the intention of raising enough money to expand into other services. After the merger, Helbiz reportedly said its valuation was $408 million, but the company’s stock has since dropped and its market cap now stands at around $92.7 million.
Helbiz has also encountered other hurdles. The company’s full earnings report from 2021, as well as the fourth-quarter report from that year, has been delayed until mid-April 2022; well after most public companies have released their own earnings reports. The US Securities and Exchange Commission stipulates that full-year reports be released no later than 60 days after the end of the fiscal year.
“We were unable to get necessary data from one of our third parties in time to complete our audit so we requested the delay,” Mr Rosenberg said. In addition, he denied any connection between the missed payroll and the delayed earnings report.
Helbiz is known primarily as a micromobility operator but since its SPAC merger, the company has attempted to expand into other offerings, including ghost kitchens and media streaming. In 2021 the company launched Helbiz Media, a new streaming service, striking a deal with Fox Networks Group to be the exclusive distributor of Italy’s Serie B soccer championship in the US and the Caribbean.
Following the news, Helbiz’s share price soared to 97 per cent before eventually sinking to its current price of around $3 a share.
The company has attracted other negative headlines too. Palella, Helbiz’s CEO, was sued last year by a group of investors who claimed they were defrauded into buying the HelbizCoin cryptocurrency as part of a “pump and dump” scheme.
The plaintiffs said Helbiz promised to use proceeds from its initial cryptocurrency offering, which was announced in 2018, to develop a platform allowing users to rent bikes, cars, scooters and flying drone taxis. Instead, Helbiz is alleged to have kept most of the money for itself and, in accepting other forms of currency, effectively killed its own cryptocurrency.
Helbiz’s lawyers say the case is “without merit,” according to reporting by Reuters. The case is still pending in New York district court.
Source: The Verge
(Links and quotes via original reporting)