Uber-backed Lime posts over 30% bookings growth as it eyes IPO

Lime, the operator of a shared electric bike and scooter network, pledged to sustain double-digit bookings growth after posting record trips in 2024, a goal the company said will prime it to follow through on a long-expected initial public offering.

The startup, which is backed by Uber Technologies Inc., posted its second year of positive free cash flow in 2024, according to financial results to be announced Tuesday. It also saw another year of more than 30 per cent growth in gross bookings.

This follows aggressive expansion over the past 12 months, with launches in more than 20 cities such as Tokyo and Athens. It also increased its fleet of bikes and scooters by nearly 20 per cent to more than 270,000 vehicles.  

Founded in 2017, San Francisco-based Lime has been positioning itself for an initial public offering, first floating IPO plans in 2021 before US public equity markets dried up. In the past year, it has hired new C-suite executives including a chief legal officer and chief technology officer.

Chief Executive Officer Wayne Ting told Bloomberg last April that much of the IPO timing is out of Lime’s control as the company is waiting for the right macro environment. While there are no updates on the timeline, Ting said in an interview that the company is focused on building a “track record” of profitability and free cash flow for investors before prioritizing a public market debut. 

Lime had a valuation of about $510 million in 2020 when Uber led a $170 million investment round. Ting told Bloomberg last August that the figure “seems outdated.” It reported adjusted earnings before interest, taxes, depreciation and amortization of more than $140 million last year, 49 per cent more than 2023. A company spokesperson declined to provide a current valuation.

Tuesday’s results show that “we generate sufficient profits to fund all of our capital expenditure and all of our growth initiatives,” Ting said. “I would say the strategy is working, and what we got to do right now is double down.”

Lime’s performance represents a bright spot in the US bikes and scooter-rental market, in which firms like Bird Global Inc. and Superpedestrian have struggled to stay afloat. Superpedestrian shut its US operations in late 2023 and Lime has taken over some permits in Seattle where it used to operate.

“You’re going to see us continue to invest in new markets, new cities, scaling up our fleet, investing into the business because it is working,” Ting said. He added that the company has been diversifying its supply chain in Asia more broadly, so that it can be ready for any tariffs given President Donald Trump’s taxes on Chinese goods, including certain bike components.