Partnerships / Acquisitions

Lyft Buys Bikeshare Company To Compete With Uber

Lyft

As Lyft seeks to contend with Uber’s purchase of JUMP Bikes, the ridesharing company said it will buy bikesharing firm Motivate. Lyft would reportedly pay approximately $250 million for the company, which is the parent of Ford GoBike and Citi Bike, Reuters reported.

With such a deal, Lyft said that Motivate’s servicing and maintenance operations would still be a standalone business. In addition, Motivate would retain is brand name and continue to support North American bikesharing programs. Overall, in terms of ride shares, Lyft has about the same number of cities in its network as Uber in the U.S., in addition to Toronto.

The news comes days after Lyft announced that it had raised $600 million in a new funding round, bringing its valuation to $15.1 billion. The round was led by Fidelity Management, with Senator Investment Group LP also participating.

“Lyft’s strong momentum has continued in the first half of 2018, with our recently launched new passenger app, an environmental commitment to make all Lyft rides carbon neutral, and our partnership with Magna to develop and scale autonomous vehicle technology,” the company wrote in a press release. According to Reuters, this round of funding makes Fidelity one of Lyft’s largest investors, with a total of $800 million invested. Lyft’s other investors include AllianceBernsteinBaillie Gifford and KKR & Co.

“As Lyft grows, we will double down on our values, and invest in the vision that cities should be built around people, not cars,” noted the release. “We are committed to delivering the best possible experience for all members of the Lyft community, and we appreciate our drivers, passengers and team members who help make this continued progress possible.”

Last month, Lyft’s internal market share numbers showed that it has 35 percent of the national ridesharing market, up from 20 percent 18 months ago. The company also says its market share is over 40 percent in 16 U.S. markets, and that it has a majority share in “multiple” markets.

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