Uber to merge with rival Lyft, says CEO
The ride-hailing company Uber is joining the ranks of a number of companies that have come under fire for their practices in recent years, including its handling of sexual harassment complaints against employees and its lack of transparency about what is happening inside its operations.
The company’s board of directors announced on Wednesday that the two companies would merge.
Uber said in a statement that it was joining Lyft in “an unprecedented and significant agreement to further our growth and innovation.”
Lyft will remain the primary driver of the UberX and UberE mobile apps.
The new company is expected to be valued at about $40 billion, the company said.
Uber and Lyft will work together to build a new and robust global mobile app platform, Uber said.
Uber’s Chief Executive Travis Kalanick said in the statement that Uber will “continue to drive innovation and serve as a catalyst for positive change, as we move forward.”
Uber’s current business is based in San Francisco.
Lyft is based out of San Francisco and has been the subject of several lawsuits over its treatment of sexual assault allegations.
Kalanik also said in his statement that the company would be committed to a “culture of inclusion, equality, and fairness.”
Lyft’s board had voted unanimously in June to remove its longtime CEO Travis Kalani from his role, saying that the former Uber executive was in poor health.