Uber buys dockless bike-share company Jump

Uber buys dockless bike-share company Jump

Uber expects to eventually expand the bike-share service outside of San Francisco and has already opened up a waitlist for users looking to be notified when a Jump bike will be available via the app in their city. JUMP bikes are an evolution of bike sharing that bridges the gap between cars and bikes.

Uber has acquired Jump Bikes, a startup that operates a shared fleet of electric bicycles.

I'm excited to announce that JUMP Bikes will be joining Uber. We will of course look to our many teams to help JUMP scale in our uniquely Uber way! Pedal-assist bikes will now be allowed, but more powerful e-bikes that can reach speeds over 20 miles per hour will still be forbidden. "New Yorkers have embraced public bike sharing faster than anyone expected", said de Blasio in a statement. "People are using these bikes for multiple trips a day". Jump charges just $2 for every 30 minutes of hire with most journeys coming in shy of that length. Chief Executive Officer Dara Khosrowshahi told the Times that Uber will initially own and maintain the bikes, but may later introduce the option for other companies to finance them.

This way, the e-bikes don't need designated parking spots and can be picked up and dropped off anywhere.

JUMP is a dockless, electric bike service based in San Francisco and Washington.

Siddarth Shanker General Manager of Deliveroo Singapore  Image Credit e27
Siddarth Shanker General Manager of Deliveroo Singapore Image Credit e27

Since Jump owns the bicycles, the acquisition introduces Uber to a new business model. "The JUMP brand will also continue and we hope it will represent the best in bike share technology and responsible operations".

Industry experts say more consolidation will follow in the United States, particularly as bike-sharing companies face regulatory limits on the number of bikes allowed in cities and difficulties getting Americans accustomed to pedaling instead of driving.

Khosrowshahi said that Uber plans to integrate independent bike companies into Uber's app as well. Progress was slow. However, in the last few years, as companies sought to do for other modes of transportation what Uber did for cars, on-demand bicycles have become a hot area of investment. Our hometown pilot is off to a very strong start, with riders enjoying a convenient and environmentally friendly way to cruise up and down our trademark hills.

"When we first began talking to Uber they were going through an extremely hard time, with negative headlines each week and a massive change in leadership", writes JUMP Bikes founder and CEO Ryan Rzepecki in the obligatory Medium post.

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