The world-famous ride-hailing firm will, under the terms of the new deal, be able to rent Lime's scooters via its own app, while Lime has also announced that Uber and other tech companies, like Google's Alphabet, have contributed towards its new $335 million (£253 million) of funding.
According to Lime founder Toby Sun, Uber had made a "sizable investment" in the company, which has a market valuation of around $1 billion.
Lime is less than two years old but has already established itself as a rival to Bird, which has received significant financial support from venture capital firms.
Meanwhile, Uber revealed last month that its AI will soon be able to tell if a potential passenger is drunk by guessing a user's "state" through machine learning.
The taxi ride company's computer scientists have been working on an artificial intelligence network, and while drunkenness hasn't been mentioned it could be used for that purpose.
The techalyzer will be able to figure out whether passengers can be expected to "behave uncharacteristically (e.g., abnormally) during a trip", and can even automatically "modify their journey".
In the technology's patent, Uber said: "A travel coordination system identifies uncharacteristic user activity and may take an action to reduce undesired consequences of uncharacteristic user states.
"The system uses a computer model to identify user and trip characteristics indicative of the unusual user state."