May 9 (UPI) — Electric scooter rental start-up Lime announced a new round of financing of $170 million on Thursday, local time, according tomedia reports. The round of financing is led by Uber, with other new and existing investors, such as Alphabet, Bain Capital and GV, alphabet’s venture capital arm.
According tomedia reports, the round of financing for Lime’s valuation of $510 million, down 79 percent from the previous valuation. As part of the deal, Lime will buy Uber’s bike and scooter business, Jump.
At the end of 2016, Brad Bao and Toby Sun co-founded Lime. In May last year, Lime confirmed that Mr. Bao would replace Toby Sun as the company’s new chief executive.
In mid-January,media reported that Lime would cut about 14 percent of its workforce and exit 12 markets in the U.S. and overseas.
In late March,media reported that the company was considering further cuts in U.S. staff, in part because of a plummeting order for the company as a result of the new coronavirus outbreak. At the time, a person familiar with the matter said the company’s management was considering cutting 50 to 70 jobs, mainly at its San Francisco headquarters.
Lime isn’t the only on-demand transportation company to be challenged during the new coronavirus pandemic. Last week, Lyft laid off 17 percent of its workforce. Earlier this week, Uber laid off 14 percent of its workforce. Last month, scooter company Bird laid off about 30 percent of its workforce.