Please ensure Javascript is enabled for purposes of website accessibility

Despite Layoffs Uber Keeps Investing

By Donna Fuscaldo – May 7, 2020 at 2:59PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Uber led a $170 million investment in electric scooter startup Lime. Through the deal, the two will be further integrated.

Uber (UBER 2.53%) just laid off 3,700 full-time employees, but that isn't stopping the ridesharing company from investing in other start-ups during the pandemic. 

Lime, the electric scooter and electric bike company hailing, announced Thursday Uber that is leading a $170 million investment in the company. Other investors participating in the fundraising round include Alphabet, Bain Capital Ventures, and GV among others. 

Two electric scooters parked, facing the river in a city.


As part of the investment, Lime said it will expand mobile app integration with Uber and acquire the operations of JUMP, Uber's electric bike, and scooter unit. Wayne Ting, Lime's global head of operations and strategy was named its new CEO while Brad Bao will continue as chairman of the board. 

"Today's announcement means that riders around the world will have even more integrated micromobility options at their fingertips, making car-free travel easier than ever before," wrote Lime in a press release. "In almost all markets where Lime and Uber operate, users will be able to turn to both the Lime and Uber app to unlock world-class products and services." 

The move on the part of Uber to lead the investment in Lime comes as a new reality is setting in: with social distancing rules in place, hailing a ride isn't a top priority. Even as the restrictions are eased, people may think twice about jumping in a car for a ride. That's particularly true in hard-hit cities like New York. The tech stock's CEO Dara Khosrowshahi said as much in the announcement, noting that "now more than ever" micromobility is a "critical part of the urban landscape."

This week Uber announced it was laying off 3,700 employees amid a steep decline in trip volumes. Uber's CEO also agreed to give up his base salary for the remainder of the year. 

Donna Fuscaldo has no position in any of the stocks mentioned. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Uber Technologies, Inc. Stock Quote
Uber Technologies, Inc.
$27.57 (2.53%) $0.68

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.