Scooter startup Lime is reportedly raising $250M led by Uber investor GV

Published June 5, 2018

It’s scooters all the way down this morning, with Lime also reportedly raising $250 million in a funding after a new Delaware filing this morning indicated that competitor Bird authorized the sale of up to $200 million in shares.

GV (formerly Google Ventures) is leading this round, according to the report by Axios, as the massive land grab for a stake in the scooter wars continues to heat up — whether that’s funding or actual scooters piling up on the sidewalk. Both companies have faced pushback from some city regulators (probably on the basis of tripping over them and falling on your face), but it still means the venture community is still salivating over potentially the next major mode of metropolitan transportation. Most venture investors in the Valley argue scooters make sense for short trips throughout areas that are just too far to be considered a trek, but too close that it would be a waste of time and money to call a rideshare like Uber or Lyft.

Given that Uber exposed a massive hole for easier transportation in major metropolitan areas — and potentially replacing cars in those areas — getting into the next big transportation revolution is more than tempting enough for firms like GV (which is also an investor in Uber). Lime was previously reported to be seeking up to $500 million in funding and was taking meetings with some major firms in Silicon Valley over the past few weeks. It might not get that, but a $250 million influx might be plenty to try to continue to ramp up its business and get more rides on board. Axios is reporting that Lime has told investors users have taken 4.2 million rides and each scooter gets 8 to 12 rides per day.

Still, while it’s not $500 million, there’s plenty of interest in the on-demand scooter business — challenges of keeping them charged and intact included — that Bird has authorized the sale of up to $200 million in new shares at a $1 billion valuation just months after its previous round. So it might not be surprising if this, too, ends up as kind of a rolling process where Lime eventually gets all the capital it sought.

Scooter startup Bird has authorized sale of $200M in shares in latest funding round

Published June 5, 2018

Bird, the scooter startup whose scooters you might have seen fallen over on the sidewalk in a major metro area, has authorized a new $200 million round of funding that could value the startup at around $1 billion post-money, according to a certificate of incorporation filed in Delaware.

The latest Bird round has been pretty widely reported, suggesting that the company is raising $150 million at a $1 billion valuation. That, too, comes amid a big effort by competitor Lime to raise a big funding round. These documents indicate that the company has authorized the sale of those shares, though it may not fully fill out the round. The certificate of incorporation document was provided by Lagniappe Labs, creator of the Prime Unicorn Index.

The document indicates that Bird has authorized the sale of 31.5 million new shares in its financing round at a value of $6.15 per share, which if fully sold could net the startup as much as $200 million in this round. This round would value the company at just over $1 billion, a new financing round that follows up a $100 million round announced in March.

These kinds of rolling rounds are not completely uncommon. Instead of bundling everything together in a single round, startups may sometimes have a process that includes follow-on investment rounds, of which this may be a component. The last funding round in March valued the company at around $300 million.

Needless to say, scooters are a hot market right now even if they are facing a lot of friction when it comes to dealing with leaving their scooters everywhere around cities. But running startups that are hardware-focused — especially on-demand ones that have to manage a network of scooters that need to have enough of a charge to get someone from point A to point B, lest they have a bad experience and switch to an alternative — can be an expensive proposition. The hardware component itself, too, can be a tough business.

Electric scooter permits will be required in San Francisco

Published April 17, 2018

The San Francisco Board of Supervisors unanimously voted today to approve the ordinance that looks to regulate electric scooters in San Francisco. The ordinance seeks to establish regulation and a permitting process that would enable the San Francisco Municipal Transportation Agency or Department of Public Works to take action against scooters from companies that don’t have an official permit from the city.

“Part of the brouhaha has been really the function of the fact, which was admitted yesterday, was that some of these companies have been a little bit fast and loose with the truth,” Supervisor Aaron Peksin, a sponsor of the ordinance, said today at the Board of Supervisors meeting.*

Peskin is referencing the fact that Lime, Spin and Bird deployed their respective scooters without permission from the city. The permitting scheme the city has in mind, Peskin said, is very similar to the one San Francisco has in place around stationless bike-sharing.

“This is a basic permitting scheme to allow the professional staff at SFMTA to permit these with sensible, regulatory frameworks and to be able to confiscate unpermitted vehicles or devices,” Peskin said.

He added that these electric scooters can absolutely serve some benefits to people in San Francisco, but that it does not mean the city should have to sacrifice its sidewalk space. The next step is for the BOS to continue working with the SFMTA to develop this regulation. At a hearing yesterday, the SFMTA said it hopes to open up the permitting process by May 1.

Earlier in the meeting today, the BOS adopted a resolution to develop a working group to inform future legislation around emerging technologies. One of the resolution’s sponsors, Supervisor Norman Yee, noted how he’s heard from seniors and people in wheelchairs who are “being imperiled and inconvenienced because they are having to navigate around scooters and bikes.”

He later added, the purpose of the working group would be to ensure the city is mindful of both the intended and unintended consequences of emerging technologies.

Yesterday, SF City Attorney Dennis Herrera sent cease-and-desist letters to Lime, Bird and Spin, but that doesn’t seem to be making any difference to Lime, Bird and Spin. All three of their respective scooters were found on the streets of San Francisco this morning.

“As it says in the letter, the City Attorney has laid out some recommendations for operation that he will like to see implemented by April 30; he has not requested an immediate stoppage of service,” a Bird spokesperson told TechCrunch. “We are taking his concerns very seriously and reviewing his recommendations for improving Bird in San Francisco.”

I’ve reached out to Lime and Spin about their respective operations in San Francisco. I’ll update this story if I hear back.

An earlier version of this story misattributed Supervisor Aaron Peskin’s quotes to another supervisor.