Yesterday, Lyft, a ride-hailing app from the United States of America, announced that it is acquiring Motivate, a biggest bike-sharing company in the United States, driving Uber, its rival firm, to ramp up the own bicycle offering of the company.
The said deal is rumoured to be worth approximately $250 million. Lyft confirmed that the company has acquired the bike share systems of Motivate across North America, and will soon launch its operations under the moniker of Lyft Bikes.
Motivate serves as the parent company of a series of bike-sharing programs in the United States of America, including Citi Bike, Divvy, and Ford Gobikes. In 2017, 80 percent of the bike-share trips across the Atlantic were on Motivate bikes.
However, only several hours later, Uber retaliated with the revelations that the Jump electronic dockless bikes unit that is has acquired by the company last April, is releasing a new long-term rental subscription service.
Jump+ will see the existing users being offered the opportunity to rent their own personal e-bike and charger for only $12 per week, or $50 per month.
The two transport innovators have already been in competition with each other for the past couple of years, with the most recent developments taking their rivalry to a new level.
The expansion plans of Lyft outside of North America has been quiet during the past months after the company was rumoured to be holding some negotiations with the TfL in late 2016 regarding a possible licence in London.
Meanwhile, last June, Uber announced that Jump will soon launch in Europe later during the year.
Lyft currently operates in approximately the same number of cities as Uber in Toronto, Canada and in the United States. Last week, it raised $600 million in a fresh funding round that was led by Fidelity Management taking the valuation of the company to $15.1 billion.