Uber Technologies CEO Dara Khosrowshahi outside the New York Stock Exchange ahead of the company’s IPO, May 10, 2019.
Under the deal, Uber will transfer its own electric bike and scooter company Jump to Lime and the companies will further integrate their apps. Lime global head of operations and strategy Wayne Ting will become CEO of Lime while outgoing CEO Brad Bao will stay on as chairman.
The announcement did not disclose the valuation for Lime in the deal. The Information reported on talks between Uber and Lime earlier this week and said the $170 million investment would value Lime at $510 million, 79% below its previous valuation. The report said the companies had discussed giving Uber the option to buy Lime between 2022 and 2024 at a specific price.
On Wednesday, Uber announced it would lay off 3,700 employees, or 14% of its workforce, as the coronavirus pandemic has hurt the business. Uber’s global gross bookings are down 80%, according to a report last month from The Information. CEO Dara Khosrowshahi will also forgo his base salary for the rest of the year, according to Wednesday’s announcement.
Uber reports earnings after the bell on Thursday.
This story is developing. Check back for updates.
-CNBC’s Deirdre Bosa contributed to this report.