Uber unloads Jump on Lime in $170M investment. Unknown when bikes and scooters will return
Those looking to get around without a car in Sacramento will have to look to Lime after Uber announced it was offloading its Jump bikes and scooters operation as it refocuses its business, which has been pummeled by the coronavirus pandemic, as part of an investment in the rival.
In mid-March, Jump bikes and scooters were shut down in Sacramento by its then-parent company, San Francisco-based ride-hailing company Uber. The Jump service was suspended to reduce the spread of coronavirus, which causes the respiratory disease COVID-19.
Previously, customers used the Uber app to rent the iconic candy red bikes and scooters, which have been popular in Sacramento since the electric-boosted bikes debuted in 2018. The scooters came a year later.
Lime, the shareable bike and e-scooter company, also announced in mid-March it was suspending service in California and four of its other markets heavily impacted by the coronavirus pandemic. In addition to Sacramento, Lime’s heaviest presence is in the Bay Area.
As part of an investment package, Lime will take over the Jump service. That means, riders will be able to use either the Uber or Lime app to access a Jump bike or scooter when the service returns. There was no indication, however, when that will happen in Sacramento.
The companies said they expected more technology mashups between them in the future, too. “In the coming weeks, riders will receive an email from Uber with relevant information about the integration,” Lime spokesman Alex Youn said Friday.
“Today’s announcement means that riders around the world will have even more integrated micromobility options at their fingertips, making car-free travel easier than ever before,” according to a statement from Lime released Thursday. “In almost all markets where Lime and Uber operate, users will be able to turn to both the Lime and Uber app to unlock world-class products and services.”
The swap is part of Lime’s latest round of funding worth $170 million. Uber – with participation from Alphabet, Bain Capital Ventures, GV and others – is leading the investment and Lime acquired Jump’s business operations as part of the deal, officials said.
“Lime has the operational expertise and undivided focus needed to build a scaled, sustainable micromobility business,” Uber CEO Dara Khosrowshahi said in the Lime statement. “We’re glad that our customers will continue to have access to bikes and scooters in both our apps because we believe micromobility is a critical part of the urban landscape, now more than ever.”
In the first quarter of this year Uber lost $2.9 billion, according to announcement to investors posted on its website Thursday. The company also announced it was laying off 3,700 employees, around 14 percent of its workforce. At the end of April, Lime also laid off roughly the same percentage of workers, amounting to 80 employees without jobs.
“Our company went from being on the eve of accomplishing an unprecedented milestone — the first next-generation micro-mobility company to reach profitability — to one where we had to pause operations in 99 percent of our markets worldwide to support cities’ efforts at social distancing,” outgoing CEO Brad Bao wrote at the time. Bao, a co-founder of the company, shifted to the company’s board chairman and been replaced by Wayne Ting.
For its part, Uber’s move helps lower its operating costs and refocus the company on growing lines of revenue, such as its Uber Eats delivery service.
“While our rides business has been hit hard by the ongoing pandemic, we have taken quick action to preserve the strength of our balance sheet, focus additional resources on Uber Eats, and prepare us for any recovery scenario,” Khosrowshahi said in the Uber announcement. “Along with the surge in food delivery, we are encouraged by the early signs we are seeing in markets that are beginning to open back up.”
This story was originally published May 8, 2020 at 4:14 PM.
