Stocks, Technology

Lime raises $500M and public plans

Lime raises over $500 million, confirms plans to take its electric scooter company public.

Now, Lime says that its most recent funding round was oversubscribed, with $418 million in debt financing led by Abu Dhabi Growth Fund, Fidelity Management & Research, Uber, and certain funds managed by Highbridge Capital Management. The company also received a $105 million senior secured term loan facility from a private equity group at UBS O’Connor. (These bank loans are typically made to companies that have below investment-grade credit ratings.)

Going public would certainly help raise cash in the near term, but it also carries big risks. Lime’s main rival, Bird, recently went public via a SPAC merger that valued the Santa Monica-based company at $2.3 billion. That deal just closed, and as soon as they were publicly listed, shares in the newly merged company fell sharply.

But while Bird relies on its business model of sending fleets of scooters to small operators to handle deployment and charging, Lime will likely rely on its scale and global status to attract investor interest. The company claims to be the top scooter operator in the US and Europe. It hit 250 million rides over the summer (recall it was at 200 million a year ago) and recently rolled out the fourth-generation version of its electric scooter.

The Verge

I am a Lime user and I can’t wait to see them go public. We are still not seeing financial filings to judge whether they have a sound business model.

Technology

Uber partners with Hertz to offer 50,000 Tesla

Uber Technologies Inc on Wednesday said it is launching a new partnership with rental car company Hertz to offer 50,000 Tesla Inc vehicles as a rental option for its ride-hail drivers by 2023.

The announcement comes after Hertz on Monday said it would order 100,000 Tesla vehicles by the end of 2022, meaning that half of the rental company’s Tesla fleet would be reserved exclusively for Uber drivers.

For Uber drivers, Tesla rentals will start out at $334 a week, including insurance and maintenance, and consist mostly of the company’s Model 3 sedan. Uber said the rental cost would drop to $299 per week or lower as the program expands in the coming year.

Yahoo

I think this is a right step to electrification in automobiles. Also great news for Hertz being relevant again with electric cars. And of course, sweet win for Tesla.

This is also related to Newsom’s executive order to have California state to require that, by 2035, all new cars and passenger trucks sold in California be zero-emission vehicles.

Following the order, the California Air Resources Board will develop regulations to mandate that 100 percent of in-state sales of new passenger cars and trucks are zero-emission by 2035 – a target which would achieve more than a 35 percent reduction in greenhouse gas emissions and an 80 percent improvement in oxides of nitrogen emissions from cars statewide. In addition, the Air Resources Board will develop regulations to mandate that all operations of medium- and heavy-duty vehicles shall be 100 percent zero emission by 2045 where feasible, with the mandate going into effect by 2035 for drayage trucks.

California gov