Uber buys electric bike rental startup Jump

Uber today added another commodity service to its quiver of mobility services with its acquisition of Jump, a New York-based provider of dockless ebikes that had previously raised $11.6 million. The deal was reported to be worth more than $100 million.

The 10x premium on capital raised to date, including $10 million from Menlo Ventures in January of this year, buys Uber a fleet of motorized bicycles that can be grabbed from one location and left at another in 40 cities. San Franciscans reportedly love the bikes on the city’s steep hills. Jump, which spent almost a decade using the brand Social Bicycles, charges $2 for 30 minutes, making it a viable alternative for short drives in an Uber, or walking. Here is founder Ryan Rzepecki’s story of the company’s long genesis.

Uber’s strategy is falling back on U.S. markets and focusing more on commodity services rather than increasing specialization, UberEATS notwithstanding because it relies still on a driver and a car more than ensuring meals arrive hot and edible. U.S. cities have struggled to bring sharable bicycles into city centers, but Jump’s “dockless” bikes solve a significant problem. Instead of having to find a bike dock to return a borrowed bike, Jump’s bikes can be parked and left anywhere.

“[O]ur ultimate goal is one we share with cities around the world: making it easier to live without owning a personal car,” said Uber CEO Dara Khosrowshahi in a blog posting. “Achieving that goal ultimately means improving urban life by reducing congestion, pollution and the need for parking spaces.”

Like a car-and-driver awaiting a fare, Jump bikes are a local commodity easily organized by Uber. The acquisition makes sense and plugs an urban customer requirement.

Author: Mitch Ratcliffe

Mitch Ratcliffe is a veteran entrepreneur, journalist and business model hacker. He operates this site, which is a collection of the blogs he's published over the years, as well as an archive of his professional publishing record. As always, this is a work in progress. Such is life.