Uber yesterday said that it is buying Brooklyn-based Jump, a dockless, GPS-enabled bike-sharing service featuring fiery red, pedal-assisted e-bikes that riders are now using to tool around San Francisco and Washington, D.C., for $2 a half-hour.
"It soon became clear that with such strong synergies and alignment on mission, Jump could better accomplish its goals if it were part of Uber".
He added: "We're committed to bringing together multiple modes of transportation within the Uber app - so that you can choose the fastest or most affordable way to get where you're going, whether that's in an Uber, on a bike, on the subway, or more". "E-bikes are great", notes Keating.
But Uber might be a little late to the game.
Uber had been working with Jump with a pilot in the ride hailing firm's home city of San Francisco previous to the acquisition, with Jump now readily available across the Uber app, alongside the company's ride hailing service.
Most of those cities already have a number of bike-sharing services that have created a high entry barrier for new entrants.More news: WWE WrestleMania 34: Fans stunned, confused after Brock Lesnar beat Roman Reigns
More news: Nadal back in bullring for season-defining Davis Cup duty
More news: United States crude oil inventories decrease in past week
The idea is to roll out the new driver app to eventually all operational cities across India. The agreement with San Francisco is good through 2025, and the contract with New York City is good through 2029. The bike-sharing arms race will be one to watch. It also eliminates the cost of building parking infrastructure.
"Rolling out potentially hundreds of bikeshare programs across the USA will require hundreds of millions of dollars in capital", said SOSV partner Brad Higgins, who was an early investor in Jump Bikes.
A few Silicon Valley startups, such as LimeBike and Spin, are aggressively competing in the dockless space.
For some time the bike-sharing craze was mostly an Asian phenomenon but has since caught on in the United States. China's two largest bike-sharing operators, Mobike and Ofo, both began services in US cities previous year.
"Even more importantly, we could see the shift in the company once Dara was named CEO as he began leading with humility and in a way that we felt reflected our values". In February, the company partnered with the city of Baltimore in a deal that granted Lyft five bike-share stations that offer both bike and ride-sharing pickups.
The Financial Times has reported that China's Mobike and Ofo, which have tens of millions of bikes in China, are burning up to $50 million in cash on a monthly basis.
Services by non-professional Uber drivers only continue in Poland, the Czech Republic and Romania. Scoot Networks manages an electric vehicle network sharing program in San Francisco, and the company has plans to introduce e-bikes.