The country’s second-largest automaker has announced it is buying the San Francisco-based electric scooter rental startup, reports Reuters. Spin is only two years old, yet Ford will spend $200 million to acquire the company. Though some cities have found scooter startups to be more trouble then they are worth, the micro-mobility sector is only expected to grow as urbanites look for new alternatives to get them from one place to the next.
But spending $200 million to acquire Spin doesn’t look like that much when you consider the fact that scooter companies Lime and Bird have already received $450 million and $400 million in funding, respectively. As for the vision Ford has for Spin, Sundeep Madra, head of the car company’s Ford X startup incubator, said that Ford plans on expanding Spin over the next 18 months, rolling out from 32 markets to more than 100 in the U.S. alone. Marcy Klevorn, president of Ford’s mobility unit, also notes that the acquisition of Spin “fills a gap in our mobility portfolio” by providing “accessible and affordable transportation” in both cities and on college campuses.