Uber has announced that it has acquired New York-based electric, dockless bike sharing service company Jump in a deal that is reportedly close to $200mn, according to TechCrunch. Terms of the deal were not disclosed but a report from last week said that an acquisition was worth over $100 million.
Fewer people are riding on public transportation in the United States, according to research, as commuters shift to ride-hailing services such as Uber and Lyft. About half of us states classify e-bikes as motor vehicles, requiring licensing, registration and even insurance, making them illegal to ride. "Now it's just about shifting mode and perception and getting people willing to try a bike instead of a vehicle".
The proceedings concern UberPOP, which has now been suspended in France and elsewhere, while Uber's other services continue to operate, unaffected by the court proceedings. But there's also VC-backed startups like LimeBike and Bird and Motivate, the most well-known and visible among the bike sharing companies in the U.S. Motivate has an exclusive contract with San Francisco for a docked bike share network until 2025.
"Rolling out potentially hundreds of bikeshare programs across the US will require hundreds of millions of dollars in capital", said SOSV partner Brad Higgins, who was an early investor in Jump Bikes.
Given Uber's scale, Rzepecki expects to be able to spread Jump's bikes further and faster.
JUMP presently has 250 of its bright red electric bikes available in San Francisco and will add another 250 in nine months. The assist from the motor helps riders arrive at their destination without too much sweating, and the boost can get riders up and over those sizable San Francisco hills. "Though they won't be launching until Monday, Jump is the standout of the group", he concluded. In China, for instance, there were more bike-share rides between 2013 and 2017 than there were rideshare rides in the US during the same period. For Jump the average number of miles with an e-bike has been 2.7.
Part of the reason that users are regularly jumping on Jump bikes is because it turns out that riders can be pretty price sensitive.
He also pointed to Uber's experience in setting up local operations around the country, which could be helpful to Jump as it tries to expand rapidly. The city's transit authority will monitor the program over the next 18 months to see if the company can solve the issues that have plagued dockless bike-sharing in other cities. "And we think e-bikes are just a spectacularly great product".
The demand for these mobility services is large enough that Jump and other bike and e-bike services could have ended up competing with Uber's services, though now Jump's network is way smaller than Uber's. In January, China's Didi Chuxing expanded into the huge and fiercely competitive Chinese bike-sharing market. Uber execs appeared to have defied the ruling. How could it not with the lightning pace at which its boomed in recent years.
"Through our collaboration we realized that we shared Uber's vision of multi-modal mobility and had the same goal of decreasing vehicle ownership".
Uber Technologies Inc on Tuesday unveiled a new app for its drivers that includes a real-time earnings tracker, the latest effort by the ride-hailing service to improve an often contentious relationship. The companies aren't saying.
Founder Rzepecki has been working on this concept for a decade and was one of the original creators of the dockless bike network. Rzepecki tells The Verge, "When we first began talking to Uber they were going through an extremely hard time, with negative headlines each week and a massive change in leadership. It was an awesome idea", says Scoot Network's Keating.
Seth Meyers has been awarded a refund from Uber for the auto he never took to the hospital when his wife went into labour.