Uber is the leading ride-hailing company in the world but it wants to have deeper roots in all the other on-demand transportation modes available. For this purpose, it is now taking the acquisition-growth path route as it plans to acquire rental electric scooter startup Bird.
Both the companies are currently in the talks in order to complete the multibillion-dollar acquisition. However, Bird is not the only company that is on the radar of Uber with the ride-hailing company also in talks with Lime, another rental electric scooter startup. No final decision has been made by Uber yet and the company still needs to decide the course of action for now. But it is expected that the ride-hailing company will reach an agreement before the end of the year with negotiations already in advanced stages with both Lime and Bird.
The Information reported that Uber has options of both the companies with Bird being the bigger of the two. Lime is the one company in which Uber already invested during its $335 million funding round at a valuation of $1.1 billion back in July. The investment resulted in an option of Lime Scooters available in the Uber app. Lime said that it has received sizable investments from the ride-hailing company which will fuel its growth for the future.
Uber has been looking to dive into the growing rental scooter industry having acquired Jump, an electric bicycle company, for $200 million this year. The acquisition of either Lime or Bird can help the ride-hailing company to reduce the supply gap of electric scooters in the growing market. However, Bird’s CEO Travis Vander Zanden has made it clear that their company is not for sale.
But the problem right now for both Bird and Lime is that they are in need of more investment and Uber could turn out to be the answer to their fundraising problems. By completing the acquisition, the ride-hailing company would be able to provide on-demand scooter services as well.