Lyft, the ridesharing giant, has recently announced its latest innovation to keep up with its competitor, Uber. The Company announced that it has bought Motivate, the largest and oldest electric bike-share company in the U.S.
Motivate, which operates in New York as CitiBike, was reportedly on the finalization of selling to Lyft, and was likely to get USD 250 million or more from this deal. While the declared price tag has yet to be announced, the deal seems unavoidable after Uber paid USD 200 Million to Motivate’s biggest competitor, the bike-sharing startup, Jump.
There is a big concern on whether the bike-sharing business will increase the Company’s stream of revenue. As of last year, Motivate administered thousands of bikes across bike-sharing programs in nine U.S. cities, and observed more than 1.8 Million rides in NYC alone, which still wasn’t profitable.
However, Lyft and Motivate are looking for new ways to ferry people and other goods, and these bike-sharing operation enables them to do more effectively. The bikes also provide these companies with the opportunity to tout their commitment to carbon neutrality.
This line of business has limited number of choices when it comes to getting customers to their destination. There are many people who would rather ride a bicycle or scooter in order to avoid the increasing amounts of traffic that goes on in major cities, but to many it is still an inefficiency.
Both Uber and Lyft have applied for permits that would enable them to have their own e-scooters in the streets of San Francisco. However, the big question is whether these companies will build or buy their own e-scooters, with Lyft already producing some prototypes for its own e-scooter designs.