Electric scooter start-up Lime cuts 14% and pulls out of 12 markets

Beijing time on January 10 morning news, according tomedia reports, the world’s largest sharing electric scooter company Lime will carry out a round of layoffs, this time accounting for 14% of the company’s total workforce. In addition, the company will exit 12 markets. The move comes at a time when most scooter companies have seen a marked decline in business, with a sharp drop in the number of people using scooters. In addition, there are reports that the industry is generally experiencing profit ability problems.

Electric scooter start-up Lime cuts 14% and pulls out of 12 markets

Lime CEO Brad Bao said in a statement that the company had decided to pull out of some “slow-moving” cities. Cities where Lime will cease operations include Atlanta, Phoenix, San Diego and San Antonio, as well as Linz in Austria, Europe, as well as Bogota in Latin America, Buenos Aires, Montevideo, Lima, Puerto Vallarta, Rio de Janeiro and Sao Paulo.

The company will cut 14 percent of its workforce, or about 100. ‘There are indeed some employees who will leave the company, ‘ Mr. Bao said in a statement.

“Our goal in the mid-2020s is to achieve financial independence, and we believe Lime will be the first to make a profit,” Mr Bao said. We are very grateful to our team members, users, charging partners and the cities we work with, and we hope to bring the service back to the web in these communities when the time is right. “

Lime and its rivals such as Bird, Uber and Lyft have struggled for a long time to make ride-sharing profits. Most experts agree that the market is now saturated and that companies need to be united. After the fast-growing period, many scooter companies have had to slow down their expansion and begin to address persistent problems such as the unit economy, software, batteries and security. In addition to Lime, Bird, Skip, Scoot and Lyft have all made layoffs in recent months related to the scooter business.

Lime, which operates in more than 120 cities around the world, earned $420 million in gross revenue and lost nearly $300 million in 2019. The loss is likely due to higher costs, including the depreciation of the value of electric scooters and the company’s huge maintenance operating costs.

Joe Kraus, Lime’s president, said the company was close to profitability and denied rumours that it was nearing dry ingenuity and was seeking a new round of funding. In October, its rival, Bird, received $275m in financing, valuing it at $2.5bn after the deal.