Uber has recently announced a deal with Lime Scooter hire company, the deal would allow Uber users to hire Lime’s scooters via its app.

Lime is a scooter hire services company which allow users to hire scooters, pedal cycles and electric bikes in 46 cities. Uber has joined the list of ventures which provided funding of $335 million to Lime along with Google’s parent company Alphabet and others.

Lime’s founder Toby Sun stated in a blog post that “Uber has made a sizable investment in Lime.” Collaboration with Uber would provide users with a variety of transport options at their fingertips which would make it so easy for people to live without a car, he added.

Lime and its rival Bird are both backed with venture capital funds, both the companies have convinced people that scooters can make a big difference the way people travel around big cities.

It’s been only 18 months Lime has started its operations after merely few months the company is valued at $1 billion and its rival Bird is valued much more than that.

Uber has acquired Jump earlier this year for $200 million indicates Uber’s future plans to add more travel options in their ecosystem; Jump also runs electric bike hire services in cities.

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Uber’s deal with Lime followed soon after its rival Lyft announced acquisition of Motivate—a bike sharing company based in the United States. The electric bikes and scooters for hire has become increasingly popular in large congested cities over the past one year. There are at least five active companies in the US allowing people to hire and ride their scooters.

The basic fare for hiring a scooter is as low as $1 which increases with the distance traveled.

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However, there are some problems arising for companies currently operating in large cities. San Francisco is putting a ban on scooters that are operating without the permits. Chicago is also focused on banning dockless bikes in favor of bikes that have racks.