Uber Leads $170 Million Lime Investment Amid Massive Pandemic Layoffs
Uber transfers its Jump bike and scooter division to Lime as part of a major $170 million funding round. The deal significantly drops Lime's valuation while Uber continues to slash its workforce due to the pandemic.
Uber leads a $170 million investment round in electric scooter and bike rental company Lime, with Bain Capital Ventures and Alphabet also participating. As part of the deal, Uber transfers its own struggling Jump division to Lime and integrates the companies' applications. Lime executive Wayne Ting takes over as CEO while outgoing chief Brad Bao moves to the chairman role.
This investment arrives just one day after Uber announces plans to lay off 3,700 employees, or 14% of its workforce, due to severe pandemic-related losses. Uber's global gross bookings drop by 80%, and some of the approximately 500 Jump employees face potential layoffs after their division transitions to Lime, though Lime expresses intent to absorb some of those workers.
The funding round values Lime at $510 million, which represents a massive 79% decrease from its previous valuation. Reports indicate the agreement includes an option for Uber to acquire Lime outright between 2022 and 2024 at a predetermined price, a move that boosts Uber's stock by 11.2% ahead of its earnings report.