Lime, the operator of a shared electric bike and scooter service, has committed to achieving continued double-digit growth in bookings after experiencing record trip numbers in 2024. This ambitious goal is seen as a crucial step toward the company’s long-anticipated initial public offering (IPO).
The San Francisco-based startup, supported by Uber Technologies Inc., reported its second consecutive year of positive free cash flow in 2024, with financial results set to be released on Tuesday. The company also achieved over 30% growth in gross bookings for another year, following a period of aggressive expansion that included launching services in more than 20 cities, such as Tokyo and Athens. Additionally, Lime expanded its fleet by nearly 20%, now boasting more than 270,000 bikes and scooters.
Established in 2017, Lime has been preparing for an IPO, initially announcing plans for it in 2021, but those plans were postponed due to a downturn in US public equity markets. Over the past year, Lime has brought on new top executives, including a chief legal officer and a chief technology officer. CEO Wayne Ting mentioned to Bloomberg last April that the timing of the IPO largely depends on external market conditions, as the company awaits a favorable macro environment. Although there are no updates regarding the timeline, Ting noted that Lime is concentrating on establishing a solid record of profitability and free cash flow to attract investors before pursuing a public market listing. In 2020, Lime was valued at approximately $510 million following a $170 million investment round led by Uber. Ting stated last August that this valuation appears outdated. The company reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) exceeding $140 million last year, which is a 49% increase from 2023. A company spokesperson did not disclose the current valuation.
According to Ting, the results released on Tuesday indicate that “we generate sufficient profits to fund all of our capital expenditures and growth initiatives.” He added, “I would say the strategy is working, and our focus right now is to double down.” Lime’s success stands out in the US bike and scooter rental market, where competitors like Bird Global Inc. and Superpedestrian have faced challenges. Notably, Superpedestrian ceased its US operations in late 2023, while Lime has taken over some permits in Seattle, where it previously operated.
