Lyft acquires rental-car partner Flexdrive for $20 million
Lyft Inc. announced in a conference call Tuesday afternoon that it has acquired rental-car partner Flexdrive for $20 million plus the assumption of debt and lease obligations. Chief Financial Officer Brian Roberts said that Lyft closed the purchase on Feb. 7. Lyft had partnered with rental-car companies like Flexdrive and Hertz Global Holdings Inc. and Avis Budget Group Inc. to rent cars to prospective drivers on the Lyft platform. Roberts did not disclose any changes in the program nor say that other partners would no longer be used for that purpose. "We estimate that Lyft's assets and liabilities related to Flexdrive will grow by approximately $75 million to $80 million at the end of Q1 relative to year-end," Roberts said in discussing accounting changes related to the acquisition. Lyft announced the move during a conference call related to its release of fourth-quarter financial results, which sent shares down in after-hours trading.
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