Lime, which announced it was permanently withdrawing from Santa Monica last month, will take over Jump, a bike and scooter company previously owned by Uber that is still operating in the city.
Uber lost $2.9 billion in the first quarter as rider demand plummets amid the coronavirus pandemic and is offloading Jump to Lime to cut costs. Jump was already losing about $60 million a quarter before the pandemic.
“We’re glad that our customers will continue to have access to bikes and scooters in both our apps because we believe micro-mobility is a critical part of the urban landscape, now more than ever,” Uber CEO Dara Khosrowshahi said in a press release.
Uber will invest $85 million in Lime as part of the acquisition.
Earlier this week, Uber cut about 3,700 full-time workers, or about 14% of its workforce. Lime last month laid off 80 employees, representing 13% of its staff.
Santa Monica authorizes Bird, Lime, Lyft and Jump to deploy scooters and bikes within city limits under its Shared Mobility Pilot Program.
In mid-March, Lime pulled scooters from two dozen countries, including the United States, citing public health guidance. The company told the city of Santa Monica that it would permanently halt service effective April 1.
The three other companies have continued to operate with reduced fleets.
The city is planning to approve a second pilot program later this year that will allow two or three companies to operate in Santa Monica.
The application for the program is open to all micromobility companies and operators committed to sustainability and affordability will be given preference in the selection process.
Companies that are based locally and have not pulled out of other markets will also be prioritized. Only Bird, which laid off more than 400 employees, or about 30% of its staff, is headquartered in Santa Monica. All four companies currently authorized to operate in Santa Monica have paused service in some markets over the last several months.
Associated Press reporter Cathy Bussewitz contributed to this story.