Uber Technologies Inc. has acquired JUMP Bikes for an undisclosed amount. The acquisition comes shortly after TechCrunch reported that JUMP was in talks with Uber of a sale exceeding $100 million or a funding round, which possibly included Mike Moritz of Sequoia Capital. Sources told TechCrunch the final price could be approximately $200 million.
JUMP Bikes is an electric bike rental service that allows users to pay $2 for every 30 minutes of usage. The bikes allow for regular bike riding, but also an electric pedal-free riding option.
Currently, JUMP operates in Washington D.C. and San Francisco, but Uber’s vision is to launch the startup into a global project, offering its service to cities internationally.
JUMP’s CEO Ryan Rzepecki told TechCrunch that his decision was finalized after realizing Uber could bring his company’s vision to a larger scale quickly as well as Dara Khosrowshahi’s leadership position.
“I had a chance to spend a couple of evenings with him, and really talk through his vision for the business and our vision, and saw a lot of alignment,” Rzepecki told TechCrunch.
"We're committed to bringing together multiple modes of transportation within the Uber app," Khosrowshahi said in a blog post announcing the acquisition."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.”
Under the agreement, JUMP employees will join Uber’s team but the JUMP will remain as an independent company, said Rzepecki.