Uber acquires New York-based bike-sharing startup JUMP

As part of the acquisition, JUMP employees will join Uber’s team but the bike-share company will carry on as an independent, wholly controlled subsidiary.
Uber acquires New York-based bike-sharing startup JUMP
Uber acquires New York-based bike-sharing startup JUMP
Written by:

Cab aggregator Uber has acquired JUMP, a bike-sharing startup and the reported price paid is around $200 million. This is almost double the figure that was reported by the media earlier. Both companies have confirmed the deal and the bike-share firm may continue to operate independently, though the staff will be absorbed in Uber’s roll.

Uber has clearly spelt out its vision to become the number one mobility company that serves to help the typical urban commuter from one point to another without any hassles. Acquiring JUMP, according to Uber, will go towards creating that seamless infrastructure for the customers.

In terms of the operations, a minimal level of arrangement already exists between Uber and JUMP through Uber Bike within the Uber app where customers can book a bike the same way they hire a cab. But in practice, customers would directly make the bookings on JUMP’s app itself. That practice may continue, though, Uber will ultimately merge the apps at a future date, for various reasons.

JUMP offers its customers dockless, pedal-assist bikes, which can be left after reaching the destination at the bike parking racks or other designated spots.

Interestingly, Uber is not the only one following this model of integrated transport service in cities. Their rivals are at it too. In India, for example, Ola is experimenting with Ola Pedal, a bike-hiring provision, though its availability is still limited.

Similarly, Grab, the popular cab aggregator from Southeast Asia and Didi of China also have their bike-sharing services in place. Ofo is the bike sharing business of Didi and is directly promoted by it. Grab’s OBike is also part of its own stable.

JUMP, though an independent entity under Uber’s ownership will be free to enter into partnerships where it does not clash with Uber’s interests. The bike-sharing startup has seen aggressive expansion within the US, with the e-bikes being launched in Washington DC and it could launch an additional 250 bikes to its existing fleet of similar number in San Francisco, provided the authorities issue the permissions. 

Related Stories

No stories found.
The News Minute