The development of the market for Shared electric scooters is in a hot period. For details, please refer to the article "Favored by capital -- Shared electric scooters" on this website. Valuations of start-up are rising at a high rate of speed and some famous companies are starting to acquisition.
According to people familiar with the matter, Uber has spent a lot of effort on JUMP Bikes since it bought it for $200 million earlier this year and has offered electric scooter sharing services in fixed location, especially in product and operations, so it hopes to take advantage of Lime and Bird's strengths. Of course, both Bird and Lime have denied the acquisition.
Dara Khosrowshahi, chief executive of Uber, once said: "Uber used to only provide car-sharing services, but now we hope to use innovative ways to truly help consumers to achieve the most convenient, cheapest and reliable daily commuting. In my opinion, electric scooter is a great invention with bright development prospects.”
He added: "although shared electric scooters are not being used at their best in some cities, I think they will become more popular in the future. We can already see scooters on the streets of Seattle, San Francisco, Austin, Paris and other cities.”
Therefore, in the case of so much emphasis on shared electric scooter business, it is inevitable to increase supply. Besides, Uber invested Lime’s series D financing, so this acquisition is natural.
In addition, the pressure Uber suffered make it has to further promote the business of shared electric scooters, because competitor Lyft has successfully acquired Citi Bike and motivation, and now has the largest shared-cycle network in the United States. However, Uber's development goal is not limited to car-sharing service, but hopes to coordinate the entire transportation network and become the market leader. Therefore, it must quickly arrange other sharing services except shared car and achieve the balanced development of all businesses on the whole. The acquisition of Bird or Lime can help it quickly gain a larger market share and accelerate development opportunities, further ensuring that Uber can get IPO at the beginning of next year.
In general, Uber attempting to acquire Bird or Lime, whether out of internal development demand or external competition pressure, is enough to prove that Shared electric scooter has great potential in the future commuting market.
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