Uber acquires dockless bike-sharing start-up JUMP for $200 million
Uber has acquired dockless bike-sharing start-up JUMP for an undisclosed amount of money. However, some reports suggested that the deal was finalized at a price closer to $200 million. Earlier in January, the two companies collaborated on a pilot to allow users to book JUMP bikes via the Uber app. Now JUMP will become an independent, wholly controlled subsidiary of Uber.
JUMP has received $11.1 million in funding so far
In January, JUMP received a funding of $10 million in Series A round led by Menlo Ventures. Other investors included Sinewave Ventures and Esther Dyson. With the funding, JUMP's total amount raised till date reached $11.1 million.
The deal gives Uber access to JUMP's 12,000 e-bikes
JUMP operates dockless, pedal-assist bikes with built-in integrated locks. This allows riders to lock them to existing bike racks or the "furniture zone" of sidewalks, where things like light poles and benches are. This way, the e-bikes don't need designated parking spots and can be picked up and dropped off anywhere. The deal gives Uber access to JUMP's fleet of 12,000 dockless, GPS-enabled bikes.
Uber looking to branch out into new modes of transportation
Uber aims at becoming a top urban mobility platform by branching out into new modes of transportation. Uber CEO Dara Khosrowshahi said, "We see the Uber app as moving from just being about car-hailing to really helping the consumer get from A to B in the most affordable, most dependable, most convenient way. And we think e-bikes are just a spectacularly great product."
Uber's international competition
Indian ride-hailing app Ola launched a dockless bike-sharing service called Ola Pedal last December at select university campuses. Further, Southeast Asia's Grab and China's Didi Chuxing have both invested in bike-sharing start-ups OBike and Ofo, respectively, and launched their own bike-sharing services as well.
