Scootin’ my way downtown… Electric scooters were the talk of the prepandemic town as venture-capital cash flowed into micro-mobility startups with four-letter names. In 2019, Bird became the fastest US startup to reach unicorn status, followed by its scooter rival, Lime. But valuations plunged as commuting sagged, and startups like Bird, Lime, and Helbiz remained deeply unprofitable.
- Update: Yesterday, Lime said it achieved full-year profitability, which would make it a standout in a sector that’s notorious for burning cash (and giving drivers anxiety).
- The (still private) startup said it’s the first micro-mobility company to post a profitable year after gross bookings grew to a record $466M last year. FYI: Lime’s eyeing an IPO.
- Meanwhile: Rival Bird hasn’t reported a profit since going public, and its shares are down 97% since its SPAC debut in November 2021.
Stockholm scoot commute… Lime says it’s the biggest scooter operator in the US and Europe, and its scooters line streets in cities like Berlin, Sydney, Tel Aviv, and Rio. CEO Wayne Ting said Lime’s global presence is a big differentiator from “weaker” players. But it has another big distinguisher: building its own scooters instead of buying from manufacturers.
DIY is harder, but it can pay off… Lime invested in designing and building its own scooters with swappable batteries, which it says has massively reduced its capital expenditures. Lime added that, thanks to its DIY approach, it has won more than 90% of competitive permits against other micro-mobility companies. In 2019, the average e-scooter lasted only three months. But Lime says its latest fleet of e-scooters and e-bikes lasts more than five years.