Electric scooter firm Lime has raised $170 million in a spherical of funding led by Uber, with participation from Alphabet, Alphabet’s VC arm GV, and Bain Capital, amongst others. As a part of the deal, Uber is transferring its electrical bike service Jump over to Lime, which can “further expand” its integration with Uber’s cell app.
The announcement comes after a turbulent couple of months for city transportation. The pandemic-driven international lockdown has meant that demand for scooters and ride-hailing providers has plummeted, with Lime pulling its platform from main markets again in March and Uber suspending its carpool providing. In the 2 months since, Uber has tried to adapt by placing its huge transport community to other uses, whereas each Uber and Lime have laid off vital parts of their workforce.
Reports emerged earlier this week that Uber was trying to put money into Lime at a $510 million valuation — 79% decrease than its earlier valuation — with an possibility to purchase the corporate outright for a set value someday within the subsequent few years. Neither firm has confirmed Lime’s valuation at this spherical, but it surely has virtually definitely misplaced its unicorn standing.
Combining Jump and Lime offers each micromobility platforms higher attain and breadth, whereas Uber’s sheer scale will assist promote the providers extra prominently inside its app.
Many cities around the world are planning to show streets over to pedestrians, bikes, and different cleaner types of transport as soon as lockdowns carry after many feared individuals would use their vehicles extra ceaselessly to keep away from public transportation, thereby rising air pollution. Today’s information not solely offers Uber a higher stake in Lime — which it had invested in beforehand — it additionally permits the transportation behemoth to double down on cleaner choices that assist individuals adhere to social distancing measures.
Earlier this week, information emerged that Intel was planning to pay $900 million to buy transit platform Moovit, which has additionally been impacted by the decline in city visitors. It later emerged that Moovit had been trying to increase extra capital, however when the pandemic hit promoting to Intel evidently made sense.
These two offers within the house of only a few days are early indicators that we will possible anticipate to see fairly a bit extra M&A exercise within the months forward.