Allbirds originally won with one simple idea: ultra-comfortable, minimalist wool sneakers. But that edge faded as it became more of a fad than a lasting staple. Plus new products and categories (running shoes, apparel) didn’t resonate, while some customers complained about quality and durability. Meanwhile, competitors like Hoka and On Running offered better performance and fresher designs. After peaking at a $4B valuation in the public market, they sold their core assets for $39M in 2026 and attempted a pivot to AI infrastructure to survive.
