Lyft acquires Halo Cabs

US ride-hailing service Lyft has reportedly acquired startup Halo Cars, which focuses on rooftop advertising. Lyft like other ride-hailing services is looking into newer avenues in search of profitability and the acquisition of Halo Cars is another step towards.

Although ride-hailing services have gained immense popularity over the past few years, most are still running into losses. This has seen most ride-hailing companies like Uber and Lyft pumping money into other side businesses with the aim of registering profits.

Lyft confirmed that it has purchased digital car-top advertiser Halo Cars although it didn't disclose the buyout amount. The acquisition is being seen by many analysts as a brilliant move by the ride-hailing company, which has been struggling for quite some time and is desperately searching for profitability in its business. Halo is likely to aid Lyft in its pursuit of profitability.

Halo Cars was founded in 2018 and have operations in quite a few big US cities such as New York and Chicago. However, it is a relatively new and small company, which makes more sense for Lyft to buy the company, as it is also focusing on acquiring the team that is likely to also join its media division. Digital car-top advertising is one of the easier avenues for both traditional taxis and ride-hailing companies to generate revenues.