1 Month After IPO, a Big JUMP in Prices at Uber’s Bike Share Service – Streetsblog Denver
One month after banking $8.1 billion from a Wall Street IPO, Uber has raised the price of a simple bike ride on its JUMP e-cycles by 67 percent.
A 20 minute JUMP ride in Denver now costs $5, compared to $3 a week ago. The company’s per-minute prices have gone up to 25¢ in Denver, from just 15¢ per minute, according to Stephanie Sedlak, a spokesperson for Uber, JUMP’s parent company. In Los Angeles, JUMP prices are set to go up to 30¢ per mile tomorrow.
“We’re updating our pricing to better balance supply with demand,” said Sedlak in an email.
The news of the price hike triggered an immediate reaction from a JUMP user in the Los Angeles area:
I’m out. I like Jump bikes a lot, and I use them, but they’re already a luxury because even a short ride can cost $3.00. Now that 20 minute ride will be $6.00? No thanks.
— David Veloz (@3daydog) June 13, 2019
Uber spent $1 billion more than it earned during the first quarter of 2019, according to its first earnings report, which the company issued last week. As shareholders start to expect profits, Wall Street analysts think the company will eventually raise prices on all of its services.