Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on the day's biggest business stories
Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Sign up for Axios NW Arkansas
Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters
Illustration: Sarah Grillo/Axios
Scooter company Lime is laying off about 14% of its workforce (roughly 100 employees) and shuttering operations in 12 markets as it seeks to become profitable this year, the company tells Axios.
Why it matters: After two years of explosive growth, scooter companies have entered a new phase—survival of the fittest in a capital-intensive, money-losing industry.
The big picture: Lime is not the first or only scooter company to make cuts.
- Bird, Scoot, Lyft, and Skip have all held layoffs or retreated from certain markets over the past year.
- Lime too has made small cuts, as when it suspended operations and laid off workers in St. Louis in late 2018, though it emphasizes to Axios that it will continue to expand to new markets this year.
- The companies have generated headlines for huge losses as they attempt to manage vehicle attrition, labor costs, and regulatory battles.
What they're saying: "We’re very confident that in 2020, Lime will be the first next-generation mobility company to be profitable," Lime president Joe Kraus tells Axios.
- He said that projection is based in part on improvements to Lime scooters' longevity, which in 2019 went from from six months to about 14 months.
In between the lines: Kraus also refuted rumors that Lime is actively raising a new round of funding despite months of ongoing rumors that the company was running out of cash and looking for a fresh infusion. (Meanwhile, rival Bird announced in October $275 million in new funds.)
- Kraus added that the company is not looking to sell but could be interested in being on the other side of the M&A table.
- "We always look opportunistically in being a buyer," he said.
Details: Lime is ending operations in 12 markets where it says business was underperforming.
- In the US: Atlanta, Phoenix, San Diego, San Antonio.
- In Latin America: Bogota, Buenos Aires, Montevideo, Lima, Puerto Vallarta, Rio de Janeiro and Sao Paulo.
- In Europe: Linz (Austria).
Editor's note: The story has been updated to show that scooter longevity was previously six months (not weeks).