Expect to see even more Lime scooters and bikes zooming around major US cities.
Wayne Ting, Lime’s CEO, told Business Insider on Tuesday that the company is focused on getting more of its vehicles on the roads where it already operates rather than making a big push to expand to more cities.
Ting made the comments on the same day that Lime reported quarterly earnings results for the first time. Revenue grew 24% to $304 million for the second quarter, and the company posted net income of $295 million, including the benefits of its IPO in July.
Shares of Lime rose about 2% in after-hours trading.
Getting riders to use Lime more frequently will be key to making the company consistently profitable, Ting said.
Lime operates in about 60 US cities. By adding more vehicles to its existing fleets, Ting said, Lime makes it easier for users to find a ride near them.
That’s particularly important as Lime grows its paid subscription options, such as LimePass, which offers a discount on the company’s usual per-minute rate if riders buy ahead of time.
“You’re going to continue to see us invest in our existing markets to grow reliability,” he said. “And, by growing reliability, we can also engage our riders more frequently.”
Lime’s monthly active users grew 22% during its second quarter, topping 5 million for the first time.
Ting said that Lime is “an AI-resilient business,” because it sells real-world rides on scooters and bikes. “There’s no amount of vibe-coding that is going to get you physical transportation,” he said.
Even so, Lime is using AI in its operations, he said.
The company uses a machine-learning algorithm to determine where to position scooters and bikes in each city based on demand, Ting said. The tech allows the company to “optimize revenue or profits,” he added.
There’s also a benefit for riders, Ting said: They’re more likely to find a scooter or bike nearby when they need one.
“Reliability is both the number of bikes and scooters you have, but it’s also making sure they’re at the right place at the right time,” he said.
Do you have a story idea about Lime? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here’s our guide to sharing information securely.
Read the original article on Business Insider
The post Lime is doubling down on cities where it already operates. It’s about creating more loyal riders, its CEO says appeared first on Business Insider.
