Lyft just upped the transportation game in a move that has nothing to do with cars.
The ride-hailing company has bought Motivate, the largest bike-rental operator in North America and the parent company of NYC’s CitiBike and Chicago’s Ford GoBike. The business, which reportedly dominates roughly 80% of bike-rental trips in the U.S., will be renamed Lyft Bikes.
Under the deal, Lyft will acquire Motivate’s technology, corporate functions as well as its contracts with New York City, Chicago, and six other major cities across the country, the New York Times reports.
“Together, we believe that integrating our services in partnership with the public sector will transform the urban transportation landscape, increase bike ridership and make our cities better,” said Motivate executive chairman Steve Koch in a statement on Monday.
Although the deal’s financial terms have not been disclosed, reports in June suggested that Lyft was willing to pay around $250 million for the acquisition.
Some parts of business will run as usual for the newly acquired company. The servicing arm of Motivate will remain a stand-alone company and will now provide maintenance for Lyft Bikes.
The move comes just a few months after Lyft’s ride-sharing rival, Uber, announced plans to acquire e-bike service Jump Bikes. Earlier this month, Uber reportedly expressed interest in acquiring Motivate as well.
“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,” said Lyft co-founder and president, John Zimmer. “Bringing together Lyft and Motivate will accelerate our collaboration with cities and deliver even better experiences to our passengers and riders.”
