Citi Bike is on the market

Lyft is exploring a sale of its bike and scooter enterprise, which incorporates New York Metropolis’s in style Citi Bike. The information comes a number of months after the struggling ridehail firm laid off a 3rd of its workforce in an effort to scale back prices.

Lyft has “obtained robust inbound curiosity in our bikes and scooters enterprise,” the corporate stated in a press release. “It’s solely logical for Lyft to hearken to credible proposals and discover strategic companions and choices in a number of types to serve extra riders in additional cities.”

Whether or not Lyft strikes a partnership with an investor that infuses money into the division or sells the enterprise outright stays to be seen. Both manner, Lyft desires the rental bikes and scooters to proceed to be listed on its app so riders aren’t disrupted, in line with The Wall Road Journal.

In 2018, Lyft acquired Encourage, the most important bikeshare operator in North America, for a reported $250 million. On the time, freestanding, or dockless, bikes and scooters had been beginning to crop up in cities throughout the nation. However Lyft determined that docked programs — bikes that could possibly be locked and unlocked from fastened docking stations — had been the savvier transfer. Cities had been cracking down on dockless operators partially as a result of they competed with preexisting bike share packages.

Lyft determined that docked programs — bikes that could possibly be locked and unlocked from fastened docking stations — had been the savvier transfer

Lyft continued to spend cash on bikes and scooters, buying PBSC City Options, a bikeshare gear firm that provides docks and bikes for 45 programs globally, in 2022.

However Citi Bike was the crown jewel of Lyft’s bike belongings. Greater than 114,000 individuals rode Citi Bike every day in June 2023. The system reported greater than $14 million in income, together with over $4 million in membership charges and greater than $350,000 in sponsorship cash.

And the recognition of Citi Bike continues to develop, with the system reporting a 33 % year-over-year improve in ridership to date in 2023. The blue bikes have turn into in style fixtures within the metropolis’s psychic panorama, that includes prominently in TV and movie and turning into a fascinating and sought-after inclusion in any neighborhood.

However Lyft’s monetary scenario has darkened significantly this 12 months. Its inventory worth has plummeted because it continues to lose market share to Uber and shed employees. The corporate’s founders, Logan Inexperienced and John Zimmer, stepped down from their govt roles earlier this 12 months. The brand new CEO, David Risher, instantly fired over 1,000 staff after getting into the function. He has rankled the remaining employees with return-to-office necessities and tacky company slogans throughout conferences, the Journal experiences.

Citi Bike, with its unique, multiyear contract with town of New York, is more likely to do nice in a sale. However smaller programs that don’t herald as a lot income or can’t lean on the identical sort of exclusivity could not fare as effectively, Curbed wrote earlier this 12 months.