Uber leads $170m investment round in scooter startup Lime
Bike and scooter-sharing startup Lime today said it has secured a $170m (£138m) in a fresh funding round led by Uber.
Google owner Alphabet, its investment arm GV and Bain Capital are also among the backers taking part in the investment round, the company said.
As part of the cash injection, Lime will take control of electric bike-sharing service Jump, which was acquired by Uber in 2018.
Lime also said it had promoted its global head of operations Wayne Ting to chief executive.
The latest funding comes after San Francisco-based Lime secured $335m in 2018 from a group of backers including Uber and Alphabet. Lime’s valuation was not disclosed.
The move provided a boost for Uber shares, which were up almost eight per cent in afternoon trading in New York.
It comes at a challenging time for the ride-hailing giant, which is set to publish its first-quarter results after markets close tonight.
But despite the squeeze on ride-hailing apps such as Uber and rival Lyft, bike and scooter-sharing firms may be set for a boom.
As countries around the world begin to ease their lockdown measures, fears about catching coronavirus from public transport have led to a surge in bike sales and ride-to-work schemes.
Uber yesterday said it will slash 3,700 jobs — largely from its customer support and recruitment teams — in a bid to save cash.
Chief executive Dara Khosrowshahi will also forgo his salary for the rest of the year amid a slump in demand for Uber’s services during the Covid-19 crisis.
Main image credit: Lime