Uber and Lyft to merge to form ‘UberX’ service, Uber says
Uber has agreed to buy competitor Lyft for $68 billion, with Lyft announcing it has secured a new round of funding that could total more than $150 billion.
The deal, which is expected to close in the coming weeks, is expected under the terms of a preliminary agreement reached in July.
The merger will combine Uber and a new subsidiary, UberX, the companies announced on Monday.
UberX will offer Uber’s rides in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and the U of A. Lyft, meanwhile, will provide rides in Canada, Mexico, South Korea, Singapore, Australia, Hong Kong, and Thailand.
Both companies said they will work closely together to improve services and improve their drivers’ experience.
Lyft CEO Logan Greenfield said the deal is a “transformational moment for the entire ride-sharing ecosystem.”
Lyft, which has struggled with competition and regulatory uncertainty, announced plans to invest $50 million in UberX in March, and in May announced the formation of a new joint venture, Lyft Ventures.
The company is now working on a new product called Lyft Connect, which will allow customers to pay for rides using a mobile app, and Lyft is also testing a new service called UberX Plus.
Lyft said in a statement that the merger is “an important step in our continued transformation to drive a better, more connected, and less expensive ride-hailing future.”
Lyft’s shares were up 4.3% on Monday in after-hours trading.