Categories Earnings

Lyft acquires bike-sharing start-up Motivate

Lyft is going toe-to-toe with rival Uber in order to keep up in the ride services market. Its latest move is the purchase of Motivate, the largest bike-sharing firm in the US. The exact transaction value was not disclosed although it is rumored to be around $250 million.

Motivate operates bike services like Citi Bike, Divvy, Nice Ride and GoBike across various cities and accounts for around 80% of bike-share trips in the US. Under this deal, the bike-sharing operations will have its name changed to Lyft Bikes while the maintenance business will retain the Motivate name and continue as a stand-alone operation, supporting the bike-share service.

Ride-sharing companies are looking for ways to diversify their services and bike-sharing is an area that is gaining popularity. Lyft’s competitor Uber acquired e-bike startup Jump in April and is also investing in electric scooters. Lyft believes that acquisition of Motivate will help to grow and expand the services of both companies. Lyft was able to raise $600 million last week in fresh funds in a financing effort that included firms like Fidelity Investments.

Meanwhile, Uber is thinking of offering a subscription service for its e-bike business called Jump+. Uber’s Jump Bikes sent an email to its customers inviting them to try out their new service. But the subscription fee, which is estimated to work out to around $600 a year, comes close to the cost of buying one’s own e-bike. This is likely to raise eyebrows but Uber said the email was sent to get a feel of customer sentiments and that the service was not yet live.

Most Popular

Important takeaways from Paychex’s (PAYX) Q2 2025 earnings report

Paychex Inc. (NASDAQ: PAYX), a leading provider of human resources and payroll services, reported better-than-expected revenue and profit for the second quarter of fiscal 2025, sending the stock higher soon

Lamb Weston’s (LW) challenges may not end soon, a few points to note

Shares of Lamb Weston Holdings, Inc. (NYSE: LW) turned red in mid-day trade on Friday. The stock has dropped 19% in the past one month. The company delivered disappointing results

CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%

Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top