Less than two weeks after Bird announced it had raised $300 million at $2 billion valuation, on monday, scooter rival Lime announced a new funding round of $335 million.
The round was led by Alphabet’s tech investing group GV with participation from earlier Lime investors including Andreessen Horowitz and Singapore’s Sovereign Wealth Fund, and new investors Alphabet, IVP, Atomico, Fidelity Management and Research Company, and Uber — which is partnering with the startup to offer scooter rentals through the Uber app.
Uber’s investment in Lime follows news that archrival Lyft acquired Motivate, the largest bike-share operator in the US.
“Our investment and partnership in Lime is another step towards our vision of becoming a one stop shop for all your transportation needs,” Rachel Holt, Uber’s head of new modalities, said in an emailed statement. “Lime already has an expansive footprint, and we’re excited to incorporate their scooters into the Uber app so consumers have another fast, affordable option to get around their city, especially to and from public transit.”
Scooters have become a controversial topic as they take over more and more cities across the US.
Many cities have been wrangling with the flood of unregulated scooters that have appeared on sidewalks in droves in recent months. Customers can unlock the scooters using a smartphone app for as little as $1, and trips typically cost around 10 cents per minute of riding. Some experts believe city dwellers would begin using scooters to replace shorter ride-share trips made by Uber and Lyft, which helps explain why those companies are now investing heavily in this space.