The taxi app firm Uber plans to purchase an electric-bike startup called Jump Bikes. The company explained that it wants to add bike sharing to its menu.
Uber CEO Dara Khosrowshahi unveiled Monday that the two companies have reached a deal. Jump Bikes operates the business in San Francisco and DC. It is unclear how much money Uber will shell out for the deal, but TechCrunch believes Jump will not be bought for less than $100 million.
Khosrowshahi recently explained that bike sharing is a mode of transportation that is the most affordable for some people. Uber plans to offer its customers more options including an Uber car or a bike that can be taken to the subway and so on.
The ride-sharing company is reportedly working on integrating the startup into the app in San Francisco. After the integration, riders will be able to book a bike via the Uber app.
Electric-Bike Startup “Excited” about the Aquisition
Experts agree that the latest move is part of a larger effort to expand the business beyond the usual ride-hailing service. Uber wants to enter the food delivery, driverless car, and fixed transit businesses as well. Bike sharing is just the latest addition.
Jump confirmed that the acquisition would offer Uber customers more modes of transportations which will enable people to have a life without owning a car.
We’re excited to begin our next chapter and to play a significant part in the transition of Uber to a multi-modal platform,
the bike sharing startup’s CEO Ryan Rzepecki said Monday.
The company unveiled that the Jump brand will continue to exist under Uber’s umbrella. The dockless bike sharing business is a growing business in the United States as many users would rather track a bike via an app to see where the previous users left it, unlock it, and ride it.
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