Lime, an electric scooter start-up, cut 14% of its workforce and exited 12 markets

Beijing time, Jan. 10, morning news, according to foreign media reports, the world’s largest share of electric scooter company lime will carry out a round of layoffs, this layoff accounted for 14% of the company’s total staff. In addition, the company will exit 12 markets. The move comes in the winter. In this season, most of the scooter enterprises have experienced a significant decline in business, and the number of people using scooters has decreased significantly. In addition, there are also reports that the industry has generally encountered difficulties in profitability.

In a statement, lame CEO Brad Bao said the company had decided to withdraw from some cities where “micro travel is developing slowly.”. Some of the cities where lime will stop operating include Atlanta, Phoenix, San Diego and San Antonio, as well as Linz in Austria, Europe, Bogota, Buenos Aires, Montevideo, Lima, port bayarta, Rio de Janeiro and Sao Paulo in Latin America.

The company will lay off 14% of its employees, about 100. Bao said in a statement that some employees will indeed leave the company.

“Our goal in 2020 is to achieve financial independence, and we believe that lime will become the first group of profitable travel enterprises,” said Bao. We are very grateful to our team members, users, charging partners and the cities we work with, and we hope that when the time is right, we can bring the services back online in these communities. ”

Limes, as well as competitors such as bird, Uber and LYFT, have long struggled to make a profit from the shared scooter. Most experts agree that the current market has been saturated, and enterprises need to cooperate with each other. After the rapid growth period, many scooter enterprises have to slow down the pace of expansion and begin to solve some stubborn problems, such as unit economy, software, battery and security. In recent months, in addition to lime, bird, skip, scoot and LYFT have all made layoffs related to the scooter business.

Lime operates in more than 120 cities around the world, with a gross revenue of more than $420 million and a loss of nearly $300 million in 2019. The loss is likely due to higher costs, including the depreciation of the value of the electric scooter and the company’s huge maintenance and operation costs.

Joe Kraus, chief executive of lime, said the company was close to profitability and denied rumours that it was running out of money and looking for a new round of financing. In October, the company’s competitor, bird, received $275 million in financing, with a post deal valuation of $2.5 billion. (Hang Yun)