"Financial independence is our goal for 2020, and we are confident that Lime will be the first next-generation mobility company to reach profitability," Lime CEO and Co-Founder Brad Bao said in a statement to PitchBook.
The company plans on exiting San Antonio, Atlanta, Phoenix, Buenos Aires, and Bogota. However, the company did state that they might come back to those cities "when the time is right."
This rush to find profits isn't exclusive to Lime. Several mobility companies have focused more on growth and expansion than maintaining low costs and finding profits. But shortly after WeWork's failure, companies like Getaround, Fair, and DoorDash are all cutting costs before they arrive at a similar fate.
Companies similar to Lime, like Lyft and Bird, have also started to look into the possibility of layoffs in recent months.
"In many cases, the investors behind some of these companies are wanting to conserve capital, are wanting to show profitability sooner rather than later," said Horace Dediu, an analyst at Asymco, a mobile and micro-mobility industry research firm.
Only a handful of years ago these new mobility companies were intensely popular, especially among investors. However, a lot of these mobility companies have dropped from $5 billion of venture capital funding in 2018 to only $1.3 billion in 2019.
Toward the beginning of 2019, Lime had raised $310 million from investors including GV, Bain Capital Ventures, and Andressen Horowitz which valued the company at around $2.4 billion.
The company's then CEO and Co-Founder Toby Sun said that those funds would help the company move into new markets. Lime would later launch a major expansion into the Latin American market.
Lime also saw a chance within its executives last year. CEO Toby Sun gave the position over to Brad Bao while the company brought in a new President, Chief Technology Officer, and Chief Marketing Officer.
The company also ran into several issues throughout the year. Lime faced legal issues over electric batteries catching fire and it had to end its car-sharing platform, LimePod, in September.
The scooter business also wasn't in great condition as each scooter costs around $600 and it requires 100 days of operation for the company to break even on the cost.