On Thursday, Ford Motor Co announced the acquisition of a San Fransisco-based scooter-sharing company Spin in a deal that was valued at $40 million.

The carmaker believes that the scooter sharing company would be its first and last-mile solution that would explore other than its traditional business of selling and building cars. “Affordability, combined with ease of use and electrified power, also means scooters can help tackle challenges such as traffic congestion, parking availability and pollution.” the company said.

The scooter-sharing company is currently in service in 13 cities in and five college campuses in the US. Following an official statement that was issued by the company, Spin stated that it would continue to operate under Ford’s wing as a standalone business, within Ford’s Smart Mobility division.

Spin is one among the two companies that have been granted permission to operate scooter sharing services in San Francisco. Other companies such as Lime and Bird have currently pressed pause on their operations after a public scooter debate resulted in frozen permits.

Electric scooters do have undeniable benefits— as Ford clearly realizes. When cities have a handle on how to regulate them, scooters can help ease congestion and confusion instead of creating more of it.