Electric scooter startup Lime announced that it will cease operations in 12 markets and lay off 14% of its workforce.
The company made this decision in an effort to improve profitability, stating that adoption of its service had been slow in certain cities.
“Micromobility” platforms like Lime have previously been lauded as competitive alternatives to Uber and other ride-hailing companies, but this withdrawal shows that in some markets at least, many commuters are simply not interested in using electric scooters.
“While the vast majority of our 120+ markets have adopted micromobility transportation solutions quickly and are profitable, there are select communities throughout the world where micromobility has evolved more slowly,” Lime said.
“For this reason, we have made the difficult decision to close 12 markets across the globe at this time.”
Lime confirmed that it would cease operations in the following cities:
- Atlanta (United States)
- Phoenix (United States)
- San Antonio (United States)
- Linz (Austria)
- Bogotá (Colombia)
- Buenos Aires (Argentina)
- Montevideo (Uruguay)
- Lima (Peru)
- Puerto Vallarta (Mexico)
- Rio de Janeiro (Brazil)
- São Paulo (Brazil)
“At Lime, we remain focused on our long term goal: to play an instrumental role in reimagining and changing the way we live in and move around cities across the globe,” Lime said.
“We are immensely grateful for the partnerships we’ve enjoyed with each one of these cities and the continued support from our riders, and we remain hopeful we can reintroduce Lime back into these communities when the time is right.”
South African launch
Lime did not state whether it would discontinue operations in Cape Town, where it plans to launch a fleet of electric scooters.
These scooters will be available at “strategic, privately-owned locations through the city” in early 2020, the company previously stated.
“Cape Town is helping lead the way forward on technology and innovation in Africa, and we’re excited to be a part of that story,” Lime said.
Lime allows you to rent any connected scooter for a per-minute fee by scanning the ride’s QR code and locking it again when you are done – leaving the scooter parked for someone else to ride.
The vehicles also include built-in trackers, meaning it is easy to find the closest scooter.