Uber buys electric bicycle rental company Jump Bikes
- Author: Leroy Wright Apr 11, 2018,
Apr 11, 2018, 4:43
Jump won San Francisco's permission for an exclusive 18-month deal to offer bikes in the city in January, report Carolyn Said and Wendy Lee for the San Francisco Chronicle. The company now offers various service levels and types, which include UberX, UberPOOL, UberEats, UberCHOPPER, UberRUSH, UberAir, UberBOAT, Uber Bike and more.
Uber did not make public the price it paid for the New Lab-based startup, but Bloomberg is reporting via unnamed sources that it's $100 million. But during talks with Uber employees under the new CEO's leadership, the Jump team reportedly was impressed with what they encountered, both in mission and employee dispositions and capabilities.
"It's an interesting evolution of our business model", Khosrowshahi said in a phone interview. Developing and commercializing our vision took 100+ people almost ten years of struggle and hustle to bring to life but, we've finally delivered a solution that delights customers and captures the full potential of bikes as a means of daily transportation.
Uber declined to provide details on plans to expand Jump bike-sharing or pricing plans.
Electronic bikes come built with a motor, but the cycles aren't like riding a motorcycle or scooter.
"The utilization of the bikes has been higher than expected", Khosrowshahi said. The bikes are getting ridden more than six times a day on average, according to Rzepecki.
One downside of Motivate's sharing service is that you can only park its bikes at designated docks. Built-in locks allow users to then lock the bikes to a rack when they have made their trip.
"The response from riders and the adoption of JUMP's neon red e-bikes have been incredible", he wrote. However, some cities have complained that dockless bikes have become a nuisance, clogging sidewalks or left damaged in odd locations. The acquisition will give consumers access to Jump's 12,000 bikes in 40 cities. Progress was slow. However, in the last few years, as companies sought to do for other modes of transportation what Uber did for cars, on-demand bicycles have become a hot area of investment.
It appears that Uber executives are in trouble because France can bring criminal charges against them for operating an illegal taxi service, the Court of Justice of the European Union (ECJ) ruled. In Washington D.C., Jump rolled out its services with just 20 bikes to start. Khosrowshahi told the publication that Uber will "look at any and all options" that "move in a direction that is city friendly". For now, the bikes cost $2 for 30 minutes of use.
For Uber, the acquisition presents new regulatory headaches. The position of the bikes is tracked through Global Positioning System and this eliminates the infrastructure cost which other bike-sharing firms incur.