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US: JUMP Bikes considers Uber acquisition offer

 |  April 5, 2018

JUMP Bikes, an on-demand biking service that has a partnership with Uber, is trying to decide between a possible acquisition and investment offers.

Sources have told TechCrunch that the company is looking into a possible sale to Uber for more than US$100 million, or a venture investment round, with one of the possible investors being Mike Moritz of white-shoe venture fund Sequoia Capital.

In addition, there are reports that other parties have been increasing their offers over the past week in a bid to secure ownership of JUMP.

JUMP and Sequoia were unavailable for comment, while Uber declined to comment on the reports.

Launched as Social Bicycles almost a decade ago, the company recently rebranded itself as JUMP after announcing a US$10 million Series A investment round, with Menlo Ventures and Sinewave Ventures participating.

JUMP entered a partnership with Uber in select cities like San Francisco and Washington, D.C. Users can use the Uber app to locate a nearby bike and are given a PIN to unlock it. To make the process as easy as possible, none of the bikes need to be docked, so they can be picked up and returned everywhere. The fee is US$2 for every 30 minutes.

JUMP also has its own separate app.

“Our mission at JUMP Bikes is to build the bike you want. A bike that can take you farther, get you there faster and be the most fun to ride,” the company wrote in a blog post. “A bike that you don’t even need to own, doesn’t cost a penny to maintain and is always nearby when you want it. If we achieve this mission, then we’ll see more people on bikes  —  meaning greener, more accessible and healthier cities.”

The company “plans to launch in Sacramento and Providence, Rhode Island, later this year. Through its software and hardware offerings, it operates via third parties, like cities, campuses and corporations, in 40 markets including Portland, New Orleans and Atlanta,” TechCrunch’s Megan Rose Dickey previously wrote about JUMP.

JUMP competes with GoBike and Spin, while on-demand scooters like Bird and LimeBike are also becoming more popular in the urban transportation space.

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