One of the largest ride-hailing companies, Lyft, recently announced they are in the process of purchasing Motivate. Motivate runs Citi Bike and other major bike-rental platforms in major US cities including New York City.
Lyft did not disclose the details and terms of the deal but recently details seemed to settle somewhere on a $250 million purchase cost.
This purchase pushed Lyft into the increasing hot battle for short-distance ground based transportation within the US. Just last April, Uber acquired Jump Bikes, an electric bike based rental startup. Lime and Bird Rides have both collected hundreds of millions of dollars through venture capital funding to purchase electric scooters than can be rented through their platforms.
Motivate has strictly focused and specialize on traditional bicycles which are contained at specific docking stations throughout cities. They also recently began pilot programs with electric bikes. They currently have an agreement with city officials from Chicago, San Francisco, and other major cities, which will be part of Lyft's deal, according to Lyft. Motivate also has a bike maintenance business which will remain a separate unite from the current business.
In addition, Motivate is under constant threat from a new system of dock-less scooter and bike startups, where consumers can leave whatever vehicle they rent wherever they please for the next customer to rent and ride. However cities are already beginning to look into the regulation of these dock-less services.
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