Lyft expands portfolio with bikes
Lyft announced on Monday that it will acquire bike-sharing giant Motivate for an undisclosed amount. Motivate is the parent company of popular bike-sharing networks like Citi Bike in New York and the Bay Area, and Capital Bikeshare in Washington, D.C.
The acquisition comes at a time when Lyft it trying to strategically shift gears (pun intended) with its ride-sharing options. They want to diversify their clientele, which has shown through new developments like Lyft Line, where people can share rides for a cheaper price. Adding bicycles to their portfolio will allow them to target short-distance commuters and tourists.
After the announcement, Lyft co-founder John Zimmer stated,
Lyft and Motivate have both been committed for years to the same goal of reducing the need for personal car ownership by providing reliable and affordable ways to move around our cities.
The strategic deal also follows suit with Uber’s recent developments. In April, Uber purchased bike-sharing company Jump Bikes, which is very similar to Citi Bike. The company has announced that they want to bring bikes to their Uber app. Consequently, Lyft may make the same advancements in their technology.
Additionally, Lyft’s acquisition of Motivate follows its recent focus on environmentally-friendly policies. The deal brings the company’s net worth up to $15.1 billion.
Ride-sharing continues to expand, and that isn’t exclusive to motor vehicles. Bikes are becoming increasingly popular in transportation, especially in busy cities where driving can take longer than walking. This deal will prove to be beneficial to Lyft down the road as the bike-sharing industry grows.
Featured image via Flickr/Shinya Suzuki
