Uber has acquired bike-sharing startup JUMP for an undisclosed amount of money. The ride-hailing company announced on Monday that it will acquire Jump, the New York City-based e-bike startup that has been working with Uber for two months on a pilot to integrate bike-sharing options into Uber’s app. Apparently that trial went well because now Jump will become a subsidiary of Uber, and the ride-hailing company will take a leap into a brand new industry, with a different set of challenges and pitfalls.
The size of the deal was not disclosed, though, as TechCrunch reported last week, Jump was weighing a $100 million offer from Uber or a new venture investment round. The final price was closer to $200 million, according to one source close to the situation.
In a blog post, CEO Dara Khosrowshahi said the acquisition will help in his mission of “bringing together multiple modes of transportation within the Uber app—so that you can choose the fastest or most affordable way to get where you’re going, whether that’s in an Uber, on a bike, on the subway, or more.”
The deal gives Uber access to Jump’s 12,000 dockless, GPS-enabled bikes in 40 cities across six countries — a vast network in the bike-share world that will certainly become even larger as Uber’s capital will help to scale it even further. It also helps fulfill one of the company’s missions to branch out into new modes of transportation.
Formerly known as Social Bicycles, Jump launched its bike-share business in 2010 with the aim to build smart, powerful bikes that could be locked to any rack. Jump’s bicycles have built-in U-bar locks that allow them to be secured to existing bike racks or the “furniture zone of the sidewalk,” which is where you see things like light poles, benches, and utility poles. Earlier this year the company received exclusive permission from the San Francisco Municipal Transportation Authority (SFMTA) to launch its service in Uber’s backyard. Since dockless bikes are pretty new in the US, SFMTA is using the next 18 months to assess the program to see if it works before allowing Jump to offer its services in the long term. Jump has 250 neon-red electric powered bikes scattered across the city today.