Electric scooter and bike rental company Lime is preparing for an initial public offering (IPO) in the US, according to sources.

The San Francisco-based startup has engaged Goldman Sachs and JPMorgan Chase to assist with the IPO process, which may occur next year.

Founded in 2017, Lime operates in over 280 cities across nearly 30 countries.

The company, led by CEO Wayne Ting, was last valued at about US$510 million during a 2020 funding round led by Uber.

The IPO could potentially increase this valuation, though specific figures have not been disclosed.

Lime’s public debut will gauge investor interest in a micromobility sector facing regulatory and financial headwinds.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Lime’s profitability breakthrough defies micromobility’s troubled economics

Lime’s IPO preparation comes after achieving what has eluded most micromobility companies: consistent profitability in a notoriously challenging sector.

The company reported $686 million in revenue for 2024 with 32% growth and has been free cash flow positive for two consecutive years, a stark contrast to competitors like Bird that filed for bankruptcy despite similar funding opportunities.

In 2023, Lime achieved record-breaking 156 million e-scooter and e-bike rides globally, generating gross bookings of $600 million and earnings before tax exceeding $90 million1.

This performance demonstrates a remarkable turnaround from 2020, when Uber led a funding round that reportedly valued Lime at just $510 million, significantly below its previous $1.1 billion valuation in 20182.

Lime’s approach of building its own scooters and extending their lifespan to approximately five years has dramatically improved unit economics, addressing the high replacement costs that plagued early micromobility business models3.

2️⃣ Strategic partnerships and operational efficiency enabled market leadership

Lime’s endurance in the competitive micromobility landscape stems from strategic alliances and operational improvements that competitors failed to replicate.