[Funding alert] Uber leads $170M investment in bike-sharing startup Lime

Scooter and bike-sharing startup Lime on Thursday announced that it has raised $170 million investment round led by Uber with participation from Alphabet, Bain Capital Ventures, GV, and other existing and new investors. 

As part of the deal, Lime is also acquiring Uber’s micromobility subsidiary Jump, and will further expand its mobile app integration with the ride-hailing giant.

"Today's announcement means riders around the world will have even more integrated micro-mobility options at their fingertips, making car-free travel easier than ever before," the two firms said in a joint statement. "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 statement said.

Dara Khosrowshahi, CEO, Uber, said, Lime has the operational expertise and undivided focus needed to build a scaled, sustainable, and micromobility business, and with this tie-up 'our customers will continue to have access to bikes and scooters in both our apps’.

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“This investment reaffirms Lime’s market strength and positions the company to build a long-lasting business that empowers people with sustainable, safe, and affordable transportation options,” the statement added.

In addition, Lime has promoted Wayne Ting as the Chief Executive Officer. Wayne joined Lime in October 2018 as the Global Head of Operations and Strategy. The current CEO Brad Bao will continue as Chairman of the Board.

According to Lime CEO Wayne Ting, “Micromobility will be vital to the new world affected by COVID-19, and we are already seeing this as cities begin to move again.”

“Lime has pioneered and become the global leader in micromobility, powering over 130 million rides in a few short years with the vision of making our cities greener and more livable,” said Brad Bao, Co-founder and Chairman of the Board, Lime.

On Wednesday, Uber announced a massive layoff of 3,700 employees, representing around 14 percent of the taxi-hailing company’s total workforce, as the COVID-19 pandemic decimates its business. 

On April 30, Lime also laid off 13 percent of its workforce, the figure amounts to about 80 employees.

“Almost overnight, our company went from being on the eve of accomplishing an unprecedented milestone -- the first next-generation micromobility 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,” the company’s CEO wrote at the time.