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Lyft Stock Declines Following Announcement of Spanish Bikeshare Acquisition
Lyft Inc. (NASDAQ:LYFT) shares experienced a 3.4% decline on Wednesday following the company's announcement of plans to acquire Serveo's bikeshare business in Spain. The rideshare company intends to take over operations in seven Spanish cities, including Barcelona, Madrid, and Bilbao.
The acquisition will add approximately 22,000 shared bicycles to Lyft's portfolio. Lyft's micromobility division, Lyft Urban Solutions, has already been serving as the technology and hardware partner for Serveo's existing systems. The deal combines Serveo's local operational expertise with Lyft's technology platform.
This move marks a significant expansion for Lyft, as it will be the first time its Urban Solutions division directly operates bikeshare systems on both sides of the Atlantic. The division currently runs six of the largest bikeshare programs in the United States and its technology supports 55 systems globally across 14 countries.
AdLyft stated that the transaction is not expected to have a material impact on its financial results. The deal is subject to customary closing conditions and is expected to be completed later this year.