Add GV to the roster of venture investors getting into the scooter game. Axios reports that the firm formerly known as Google Ventures will lead Lime’s likely $250 million round, which would value them at more than $1 billion post-money. (We first reported that Lime was raising at that valuation.) Investors have been enamored by some of the ridership numbers Lime has put up since it launched electric scooters earlier this year. Axios reports that it amassed nearly a quarter of its 4.2 million rides during a three-week period in May. That’s when the company was operating in San Francisco and Austin, which have since cracked down on the vehicles.
Despite the positive ridership numbers, the sector feels both bubbly and ultra competitive. Rival Bird, which is less than a year old, raised $100 million at a billion-dollar valuation last week. Uber and Lyft has been plotting ways to get into scooters. Cities, meanwhile, are likely to continue limiting growth of the sector by instituting caps on the number of vehicles that companies can launch. With increasing valuations and a diminishing number of potential acquirers, expect Lime to diversify its fleets from e-scooters and e-bikes to vehicles that look more like small cars.