Uber Invests In Lime To Offer New Non-Car Transportation Mode

Uber has made an investment in electric scooter rental company Lime with the goal of offering a new transportation mode to its users all over the world. Google’s parent company, Alphabet Inc., has also done the same thing after seeing the potential of Lime.

Lime revealed Monday that it has raised $335 million from a group of investors that includes Uber and Alphabet. The investment round was led by GV (formerly called Google Ventures). On top of existing investors, other new investors that participated in the round were revealed to be IVP, Atomico and Fidelity Management and Research Company.

“The new funds will give us the ability to expand our operations globally, develop new technologies and products for consumers and build out our infrastructure and team,” Lime said in a blog post. The firm disclosed that Uber made a sizable investment, so it is making the ride-sharing company a “strategic partner in the electric scooter space.”

Uber’s new service is expected to add variety to its transportation modes and help consumers realize that it’s easy to live without a car. “As electric scooters grow in popularity and become a more beloved way to travel short distances, the partnership adds to Uber’s vision of becoming a transportation platform for people around the globe,” Lime stated.

Since its establishment 18 months ago, the San Mateo, California-based company has raised $467 million. Its alliance with Uber is predicted to have implications for its brewing scooter ground war with Los Angeles-based Bird Rides Inc., which also has as much cash, according to Bloomberg.

Uber also agreed to buy electric bicycle service JUMP Bikes earlier this year. Meanwhile, its rival, Lyft, announced earlier this month that it was acquiring bike-sharing company Motivate for an undisclosed amount. The two companies are said to be in a fast moving race to expand their services beyond cars.

“Our investment and partnership in Lime is another step towards our vision of becoming a one stop shop for all your transportation needs," Uber’s Rachel Holt said in a statement issued to CNNMoney. "Lime already has an expansive footprint, and we're excited to incorporate their scooters into the Uber app so consumers have another fast, affordable option to get around their city, especially to and from public transit.”