The rise and fall of the Jump bike, the electric machine that wooed Uber into a $200 million sale and is now being discarded by the thousands

Katie Canales,Graham RapierJun 26, 2020, 18:35 IST

An Uber JUMP on-demand dockless electric bike is pictured at Piccadilly Circus on June 01, 2019 in London, England.John Keeble/Getty Images

Uber bought the electric bike startup Jump in 2018 for $200 million.
The company's red, shiny e-bike technology had an edge over its competitors, promising ease of use and convenience.
A recent Vice report details how just two years at Uber sent the company and its electric bike on a downward spiral.
Former employees told Business Insider that Uber's New Mobility unit and its leaders lacked bike-share experience, including then-head Rachel Holt.
"They put Rachel Holt in and she had no idea how to run a hardware company," one former employee told Business Insider. "Most say that she ran it into the ground."

The Jump bike was bred out of a vision to make bicycles more accessible to everyone as an alternative to the car.

The company's electric bike design was an impressive piece of tech — it ran smoothly, and the bikes were convenient and more user-friendly since they didn't have to be docked in designated stations.

Jump only spent two years of its 10-year lifespan at Uber. But according to a report from Vice's Aaron Gordon on Tuesday, that was enough to spell its downfall.

The Jump bike's creator and other founding team members left Uber in January, while most of Jump's employees were laid off when Uber sold Jump to rival Lime. Shortly after, footage surfaced of tens of thousands of the red-colored machines being disposed of.

Here's how the Jump bike went from being the brainchild of a reportedly scrappy, spirited, and mission-driven company to ending up being scrapped for parts two years after Uber bought it for $200 million in 2018.

Before the firm was dubbed Jump, it was a scrappy contractor called Social Bicycles.

Social Bicycles in 2016. Social Bicycles/YouTube

Founder Ryan Rzepecki was inspired by the Parisian bike-share service Velib, according to a June report from Vice's Aaron Gordon.

A Velib bike rider on May 28, 2020, in Paris, France. Edward Berthelot/Getty Images

He founded Social Bicycles (SoBi) in 2010.

Rzepecki. Social Bicycles/YouTube

Instead of the bikes being directly available to consumers, the company set out to offer cities the chance to purchase the company's bikes and docking stations.

Social Bicycles in 2016. Social Bicycles/YouTube

The bikes had a GPS system and a built-in lock, and riders could leave the bikes either on the company's docking stations or on existing bike racks when they were done.

Social Bicycles in 2016. Social Bicycles/YouTube

The goal was to make bicycles an accessible mode of transportation for everyone.

Social Bicycles in 2016. Social Bicycles/YouTube

But the bike-share arena went from small and cashless to lucrative and booming around this time as Chinese competitors like Mobike picked up steam and soon-to-be rivals like Lime entered the spotlight.

Ofo and Mobike bike-share riders on July 26, 2017, in Beijing, China. Ann Hermes/The Christian Science Monitor via Getty Images

But the bike-share arena went from small and cashless to lucrative and booming around this time as Chinese competitors like Mobike picked up steam and soon-to-be rivals like Lime entered the spotlight.

The Jump team grew thanks in part to a residency at Brooklyn's "New Lab" accelerator.

The New Lab. Charlotte Hu / Business Insider

Many of these new "sexy" startups were embracing the free-lock model, which led to riders arbitrarily littering scooters and bikes on city sidewalks and cities.

Bird and Spin scooters on April 17, 2018, in San Francisco, California. Justin Sullivan/Getty Images

The founder's electric bike design, however, would end up being its saving grace and give the company an edge.

Jump dockless bike-sharing electric cycle in London, England, in August 2019. Mike Kemp/In Pictures via Getty Images

The e-bike's tech outshined that of its competitors.

An Uber event in San Francisco on September 26, 2019. PHILIP PACHECO/AFP via Getty Images

Still, as a former employee would later tell Vice, Jump would have died much sooner if it hadn't sold to a certain ride-sharing conglomerate.

A Jump bike in Austin, Texas, in 2019. Katie Canales/Business Insider

In 2018, SoBi rebranded as JUMP, and Uber bought the electric bike startup for $200 million.

Dara Khosrowshahi, CEO Uber, presents the Jump electric bike-sharing service at the Brandenburg Gate on June 5, 2018, in Berlin, Germany. Thomas Koehler/Getty

The bikes were operating in Washington D.C. and San Francisco at the time, and the plan was to expand globally and roll out the bikes in cities around the world.

A cyclist rides a Jump bike on April 12, 2018, in San Francisco, California. Justin Sullivan/Getty Images

Uber eventually rolled out a scooter sharing service with Jump electric scooters, starting in October 2018 in places like Santa Monica, California.

Jump e-scooters in Austin, Texas, in 2019. Katie Canales/Business Insider

On May 10, 2019, Uber went public in one of the biggest IPOs of all time, with an initial market cap of $75.5 billion.

Khosrowshahi at the NYSE. AP Photo/Richard Drew

Slowly, Uber's tech bro culture began to have an effect on Jump employees.

A Jump bike sits in front of Uber headquarters on April 12, 2018, in San Francisco, California. Justin Sullivan/Getty Images

In 2019, the Jump team rolled out a new, less-than-secure cable lock, which resulted in hundreds of stolen bikes.

Lime scooters and a Jump e-bike rider on October 20, 2019, in Lisbon, Portugal. Horacio Villalobos#Corbis/Corbis via Getty Images

As part of the deal, Uber will have the option to acquire Lime between 2022 and 2024. Lime now oversees Jump operations.

A woman walks past electric Lime scooters parked on the sidewalk in downtown Los Angeles, California. Reuters

Lime only acquired bikes that hadn't been rolled out for consumers yet in cities. The rest didn't transfer.

Lime-E and Uber Jump electric bikes are piled together on the street on Dec. 23, 2019, in London, England. John Keeble/Getty Images

As for Rzepecki, he's taking a hiatus following his departure from Uber.

Social Bicycles/YouTube

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The rise and fall of the Jump bike, the electric machine that wooed Uber into a $200 million sale and is now being discarded by the thousands

Before the firm was dubbed Jump, it was a scrappy contractor called Social Bicycles.

Founder Ryan Rzepecki was inspired by the Parisian bike-share service Velib, according to a June report from Vice's Aaron Gordon.

He founded Social Bicycles (SoBi) in 2010.

Instead of the bikes being directly available to consumers, the company set out to offer cities the chance to purchase the company's bikes and docking stations.

The bikes had a GPS system and a built-in lock, and riders could leave the bikes either on the company's docking stations or on existing bike racks when they were done.

The goal was to make bicycles an accessible mode of transportation for everyone.

But the bike-share arena went from small and cashless to lucrative and booming around this time as Chinese competitors like Mobike picked up steam and soon-to-be rivals like Lime entered the spotlight.

The Jump team grew thanks in part to a residency at Brooklyn's "New Lab" accelerator.

Many of these new "sexy" startups were embracing the free-lock model, which led to riders arbitrarily littering scooters and bikes on city sidewalks and cities.

The founder's electric bike design, however, would end up being its saving grace and give the company an edge.

The e-bike's tech outshined that of its competitors.

Still, as a former employee would later tell Vice, Jump would have died much sooner if it hadn't sold to a certain ride-sharing conglomerate.

In 2018, SoBi rebranded as JUMP, and Uber bought the electric bike startup for $200 million.

The bikes were operating in Washington D.C. and San Francisco at the time, and the plan was to expand globally and roll out the bikes in cities around the world.

Uber eventually rolled out a scooter sharing service with Jump electric scooters, starting in October 2018 in places like Santa Monica, California.

On May 10, 2019, Uber went public in one of the biggest IPOs of all time, with an initial market cap of $75.5 billion.

Slowly, Uber's tech bro culture began to have an effect on Jump employees.

In 2019, the Jump team rolled out a new, less-than-secure cable lock, which resulted in hundreds of stolen bikes.

As part of the deal, Uber will have the option to acquire Lime between 2022 and 2024. Lime now oversees Jump operations.

Lime only acquired bikes that hadn't been rolled out for consumers yet in cities. The rest didn't transfer.

As for Rzepecki, he's taking a hiatus following his departure from Uber.