Feb 21, 2020 - Economy & Business

Scoop: Lyft acquires cartop advertising startup Halo Cars

Photo: Drew Angerer/Getty Images

Lyft has acquired Halo Cars, a small startup that lets ride-hailing drivers earn money via ad displays mounted atop their cars. Lyft confirmed the deal but declined to share any details.

Why it matters: Ride-hailing companies are increasingly eyeing additional ways to generate revenue, and Lyft rival Uber has been quietly testing a partnership with New York-based Cargo that gives it a cut of the advertising revenue, as I previously reported.

  • In fact, Cargo recently shut down its signature snack box business to focus on its nascent cartop ad displays.
  • Halo Cars is still small, operating in a couple U.S. cities, so Lyft appears to be largely focused on acquiring the team, which is likely joining its media division. It had raised a small pre-seed round, according to Forbes.

Go deeper: Uber is entering the ads business

Go deeper

Uber and Lyft's rise may be fueling climate change

Illustration: Sarah Grillo/Axios

A new analysis provides the latest evidence that the explosive growth of ride-hailing services like Uber and Lyft is making it harder to fight CO2 emissions from transportation.

Driving the news: The Union of Concerned Scientists studied the triple-whammy of trips replacing climate-friendly transit, inducing new travel and "deadhead" miles — that is, when ride-hailing vehicles move without passengers.

Uber's next price experiment: Shifting rides outside city centers

Photo: Justin Sullivan/Getty Images

Uber will begin experimenting next week with a new pricing scheme in 10 U.S. cities aimed at shifting ride-hailing demand away from city centers — and making more off each ride that does originate in an urban core.

Why it matters: Uber, like its rival Lyft, is under pressure to show it can turn a profit, and drivers have long complained of falling or inconsistent earnings. The move could help address both concerns while also nodding to criticism that ride-sharing apps have exacerbated urban congestion.

Virus spread emphasizes precariousness of gig economy work

Illustration: Sarah Grillo/Axios

While a growing number of white collar companies are asking employees to work from home, gig economy companies seem to be doing little to protect workers in the face of coronavirus — though pressure is mounting for them to do more.

Why it matters: While engineers and business managers at companies like Uber and Lyft can bring their laptops home and access corporate health resources, the independent contractors who ferry passengers, hot meals and groceries, cannot. This highlights painful differences between corporate "haves" and "have-nots."