Uber Applied sciences CEO Dara Khosrowshahi outdoors the New York Inventory Alternate forward of the corporate’s IPO, Could 10, 2019.Uber is main a $170 million funding spherical in Lime, the electrical scooter and bike rental firm introduced Thursday.Bain Capital Ventures, Alphabet and individually its enterprise capital arm GV are additionally taking part within the financing spherical, Lime mentioned.Beneath the deal, Uber will switch its personal electrical bike and scooter division known as Bounce to Lime and the businesses will additional combine their apps. Lime international head of operations and technique Wayne Ting will grow to be CEO of Lime whereas outgoing CEO Brad Bao will grow to be chairman.The deal got here a day after Uber introduced plans to lay off 3,700 workers, or 14% of its workforce, due to misplaced enterprise as a result of coronavirus pandemic. Uber’s international gross bookings are down 80%, based on a report final month from The Info. CEO Dara Khosrowshahi may even forgo his base wage for the remainder of the 12 months, based on Wednesday’s announcement.Bounce has about 500 folks in its division, based on Uber, however a few of these workers may very well be laid off after they transition to Lime. These layoffs could be along with Uber’s beforehand introduced cuts on Wednesday. Lime informed CNBC it could attempt to tackle a number of the Bounce workers as soon as it takes over their operations.Uber’s stock rose 11.2% following the announcement and forward of its Thursday afternoon earnings report. The stock rose after hours Wednesday on a stronger-than-expected earnings report from rival ride-hailing firm Lyft. Lyft confirmed indicators of stability regardless of the pandemic, although off a small base of rides.The announcement didn’t disclose the valuation for Lime, although the corporate confirmed to CNBC it was decrease than in its earlier spherical. The Info reported on talks between Uber and Lime earlier this week and mentioned the $170 million funding would value Lime at $510 million, 79% beneath its earlier valuation. The report mentioned the businesses had mentioned giving Uber the choice to purchase Lime between 2022 and 2024 at a particular price.Subscribe to CNBC on YouTube.WATCH: The way forward for commuting could also be by air, however most likely not in your private flying automotive
