Globally, we are starting to rethink transportation. Cries for less congestion, pollution, and inflationary pressures are placing micro-mobility companies front and centra stage. Vehicle sharing, zero emissions, and affordability are just a few cornerstones of the transition as people seek easy, pain-free, and responsible ways of traveling in and around cities. Lyft (NASDAQ: LYFT) is usually a ride-hailing company for taxi services, but a recent shift towards micro-mobility hails a transitionary age for transportation companies.
Today, Lyft partnered with micro-mobility company Spin to bring Spin’s electric scooters to the Lyft app in 60 U.S markets by the end of FY22. The integration will enable customers to find and pay for scooters through the Lyft App. The new feature is set to roll out on Thursday in Nashville, Tennessee, to be followed by 13 more cities throughout April.
The interesting thing about these partnerships is the layered integration. Micro-mobility, and a shift from conventional car-based travel, can only be truly effective if companies come together to offer an inclusive, multi-layered approach to transport.
We’ve seen it from companies like Bird and Lime which are integrated into Google Maps and CityMapper, but we need to see further levels of multi-dimensional offerings through staple apps like Google Maps and Uber to more nuanced companies like Spin, offering a one-stop-shop for everything travel.
Buyers remained distant on the news, with stock actually falling just over 2% in early morning trading. It seems the news failed to announce any financial detailing, including the fee per ride that Lyft will receive from Spin. Spin CEO Ben Bear refused to disclose further revenue information.
Lyft stock has depreciated over 50% since the company went public in Spring 2019. Growing involvement in micro-mobility could relinquish some selling pressure as consumers look to ulterior travel arrangements in the face of soaring fuel prices and growing environmental concerns. I can’t see the partnership having a resounding effect on short-term revenue growth, but it’s without a doubt a step in the right direction.
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.