Uber-Backed E-Bike Startup Lime plans to spend over $55 million this year to make its fleet bigger and expand globally. They plan to add more than 30,000 new bikes in North America, Europe, and Australia and replace old ones.
They also aim to return to Greece and Mexico, where they stopped operating due to the pandemic. Additionally, they’re thinking about new ways to make money, like advertising and introducing new types of sharing vehicles.
Lime’s Strong Growth Despite Challenges
Lime, a company that rents out electric bikes and scooters, saw a big increase in its business in 2023. Their total sales reached a record-breaking $616 million, up 32% from the previous year. They also made over $90 million in adjusted earnings, a huge increase of more than 500%.
While Lime is growing, other similar companies in the US are struggling. Many are struggling to survive because it’s harder to get money from investors, and interest rates are going up. Also, there are stricter rules for electric bikes and scooters now, and fewer people use them for commuting.
E-Bike Startup Lime Thrives as Competitors Struggle
Recently, Bird Global Inc., a scooter company, went bankrupt, and Superpedestrian, another company, is closing its US operations and might sell its European business. Also, Lyft Inc., which owns Citi Bike, is either looking for a partner or thinking about selling its bike-sharing business.
Meanwhile, Lime is doing well. Their CEO, Ting, says they’re at a point where they can grow without spending a lot on research and development. They already have the software and hardware they need, so they don’t have to increase their fixed costs. This means they can make more profit quickly. Ting believes this trend will continue for a few years.
Uber’s Support Saved Lime During the Pandemic
In 2020, when Lime was struggling because of lockdowns caused by the pandemic, Uber helped them out. Uber, which owned around 29% of Lime, invested $170 million in the company and sold its Jump bike-sharing business to Lime as part of the deal. At that time, Lime was worth about $510 million.
Nowadays, most of Lime’s business, about 60%, comes from outside the US, in cities where it’s easier to use bikes instead of cars. Some of Lime’s biggest bike markets are Sydney, Rome, Seattle, London, Milan, and Paris. Even though Paris banned e-scooters, they allowed more e-bikes before the Summer Olympics this year.
E-Bike Startup Lime Gears Up for Initial Public Offering (IPO)
Lime is getting ready to become a publicly traded company. They first talked about going public in 2021, but the US stock market wasn’t great then. Last year, they hired Ann Gugino, who used to be the chief financial officer of Papa John’s Pizza, to help them get ready for going public.
The CEO, Ting, says they’re doing everything they need to internally to prepare for the IPO. But they’re waiting for the right time when the overall economy is good. However, a lot of this timing is not in their hands.
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