Uber Acquires Bike-Share Startup JUMP For Around $200 Million, But Will It Be Worth It?
Uber is expanding past their normal ride-sharing service into the bicycle-sharing business. On Monday, Uber announced that they had acquired bike-sharing startup JUMP. The dockless, electric bike-sharing service had partnered with Uber for the past few months in San Francisco. The trial period must have gone swimmingly because Uber purchased JUMP for approximately $200 million.
For $200 million, the ride-hailing company will now have a fleet of 250 ebikes. Uber can now offer battery-powered, pedal-assist bicycles to their customers in addition to cars, which could be quicker in some cases, especially a city that is paralyzed by traffic. JUMP charges customers $2 for 30 minutes to use the ebikes and then a per-minute fee thereafter. App analytics firm Apptopia estimated that JUMP’s app has been downloaded 25,000 times and has roughly 6,000 daily active users. The bikes come with integrated locks to secure the bikes so they don’t get stolen. That seems like a lot of money for 250 ebikes and a customer base of 6,000.
“We see the Uber app as moving from just being about car sharing and car-hailing to really helping the consumer get from A to B int he most affordable, most dependable, most convenient way,” said Uber CEO Dara Khosrowshahi. “And we think e-bikes are just a spectacularly great product.” The pilot program gave Uber users in San Francisco a “bike” option on the app.