Electric scooter company LimeBike Inc. today said it has raised $170 million in new funding led by Uber Technologies Inc.

The round also included Alphabet, Bain Capital Ventures, GV and other existing and new investors. The valuation on the round was not officially disclosed but was recently reported to be $510 million, down 79% from its $2.4 billion valuation as of the company’s last venture capital round of $310 million in February 2019.

Under the deal, Lime is acquiring Uber’s bicycle-sharing service Jump. Uber acquired Jump Bikes Inc. in 2018 for a reported $200 million. Once the integration is completed, Uber and Lime users will be able to book micromobility services from their respective apps.

“Lime has the operational expertise and undivided focus needed to build a scaled, sustainable micromobility business,” Uber Chief Executive Officer Dara Khosrowshahi said in a statement.“We’re glad that our customers will continue to have access to bikes and scooters in both our apps because we believe micromobility is a critical part of the urban landscape, now more than ever.”

Long regarded as the next big thing following ride-hailing, electric scooter hire has been a difficult market to operate in, with multiple companies battling for market share. Lime was already experiencing financial issues before the COVID-19 pandemic, laying off 100 staff and exiting 12 markets in January.

The mix of world-class investors participating in the round is a vote of confidence for the company at a time when its revenue has fallen off a cliff because of coronavirus shutdowns.

The one thing missing from the announcement was any mention of the recent report that Uber was seeking an acquisition option in its investment, giving it the right to acquire Lime between 2022 and 2024. Uber has been looking at an acquisition in the market going back two years and was even reported to be in talks to acquire Lime and its rival Birds Rides Inc. in December 2018.

With the new funding, Lime has raised $935 million to date, meaning that it has now raised more venture capital than its on-paper valuation.

Photo: Lime