Uber, a ridesharing company, and Alphabet, the parent company of Google, have invested in Lime, a scooter sharing company, in a $335 million (£252 million) funding round. It comes as scooter and bike sharing becomes another option for Ford Motor (F) and General Motors (GM) to reckon with as they refashion themselves from automakers to mobility companies.
Uber is set to work with Lime as a strategic partner in the electric scooter space. The firms will be working to co-brand the scooters of Lime and make the service available on the Uber app.
The investment round was headed by GV, formerly Google Ventures. It also included IVP, a private equity firm, Atomico, a London-headquartered investment company, and Fidelity Management and Research, an asset manager.
Uber is set to work with Lime. The fleet of the latter includes e-bikes, pedal bikes, and e-scooters. Last Monday, the San Francisco startup announced that it will be working with Uber “to offer people a greater variety of transportation modes at their fingertips and make it increasingly easy to live without a car.”
Bloomberg reported that the most recent investment round valued the scooter sharing company at $1.1 billion.
Bird is the main rival of Lime in the scooter space. The company is currently valued at $2 billion after a $300 million funding round that was held last month. The said funding round was led by Sequoia Capital, a venture capital firm.
Earlier this year, Uber agreed to acquire Jump Bikes, an electric bicycle service. It was among the companies that applied for a scooter permit in San Francisco last month.
Lime operates scooter and bike schemes in around 60 cities and university campuses in the United States of America. It has launched operations in the German cities of Frankfurt and Berlin and in Paris in France and Zurich in Switzerland