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Uber/Lyft

Lyft Confirms Acquisition of U.S. Bike-Share Leader

Lyft is buying the leading U.S. bike rental firm Motivate, it said on Monday, confirming The Information’s report from a month ago. The deal comes as Uber and Lyft delve into different forms of transportation, including electric scooters, as well as offering public transit data, in an effort to be all-in-one transportation apps.

An interesting side note to the deal, which was expected to be in the $250 million price range: Lyft won’t take on several hundred workers that included bike mechanics and rebalancers, who are part of the Transport Workers Union. Ride-hailing firms have been allergic to giving full-time status to drivers, so it might not be a surprise that Lyft didn’t want unionized manual labor within its corporate walls. That part of Motivate will be broken off and operated separately, Lyft said. Lyft is picking up the Motivate technology, corporate officers and contracts with cities that give the company exclusive access to operate docks for bikes in city centers.

Lyft likely will need city approval for any changes it wants to make to the equipment it offers to riders. Pricing of its rental services also typically have to be reviewed by cities where it operates.

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