Uber Acquiring Electric Bike Sharing Company Jump Bikes

Ride-hailing behemoth Uber is acquiring electric-bike startup Jump Bikes, as it diversifies its transportation options.

Uber CEO Dara Khosrowshahi on Monday announced that the company reached an agreement to buy Jump, which operates bike-sharing services in Washington, D.C. and San Francisco. Not terms of the deal were released, but one report published last week that talked about a possible sale said it could be in excess of $100 million.

The Uber CEO said that the company was committed to uniting multiple transportation modes under the same Uber app so that the consumer can choose the most affordable and fastest way to arrive where they want to be whether in a Uber, a bike or subway.

The deal takes place only a couple of months after Uber started its pilot program to integrate the services of Jump into its app for San Francisco.

The pilot program, which enables users to find as well as reserve bikes through the app, has started off very strong, added the CEO.

Uber’s decision to buy Jump is a sign of the willingness of the company to continue expanding reach beyond the core service of ride-hailing. Uber has worked to partner in some way with fixed transit systems as well as pursued autonomous vehicles, food delivery and with this acquisition bike sharing.

Both Uber as well as Jump said that the goal is offering multiple transportation modes under one app, to give the user options to affordable and fast transportation and make it much easier to live without the need to own a vehicle.

Jump Bikes CEO and founder Ryan Rzepecki said the company was excited to start play an important new role in Uber’s transition to a multi-model platform, while entering a new chapter of its business. He added that joining Uber gives Jump the opportunity to see dreams come true faster and on a scale that is much larger.

The lineup of neon red bikes that are available to be rented in D.C. and San Francisco form part of the growing market of dockless bike-sharing. The companies specializing in dockless bike sharing are growing across the United States giving bike riders the ability to locate bikes that are GPS tracked, through apps, to unlock them and ride them from the last point the previous user had left them.

In Washington D.C. alone there is Jump and four other dockless bike services. Jump has deployed over 200 bicycles there and is one of the most popular.