Lyft Acquires Halo Cars, a Startup That Places Ads on Vehicles

Both Uber and Lyft have dipped their toes into advertising as a fresh source of revenue.
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Lyft  (LYFT) - Get Report has acquired Halo Cars, a startup that focuses on car-top advertising, according to a report. 

The ridehailing firm confirmed the deal but has not disclosed other details, Axios reported on Friday. 

Halo Cars places LED screen on top of rideshare vehicles to deliver "hyper-targeted" advertising based on time, location, weather and other factors.

Lyft's main rival, Uber  (UBER) - Get Report has also been testing car-top advertising through a partnership with a startup called Cargo. Uber earns a cut of the advertising revenue, Axios reported. 

Both Uber and Lyft are under pressure to deliver a profit over the next several quarters, and the advertising deals could represent a new stream of revenue for the companies. 

Shares of Lyft were down 1.76% to $44.68 on Friday, while Uber shares were down 0.77% to $40.60.

Lyft is expected to report a loss of $147.7 million, or 48 cents a share, on sales of $1.1 billion for the current quarter, based on a FactSet survey of 23 analysts. In the same period a year ago the company posted a loss of $9.02 a share on sales of $776 million. It reported a loss of 248.9 million. The stock has fallen 15.7% since the company last reported earnings on Feb. 11.

Uber is expected to report a loss of $988.8 million, or 65 cents a share, on sales of $4 billion for the current quarter, based on a FactSet survey of 27 analysts.  In the same period a year ago the company posted a loss of $2.26 a share on sales of $3.1 billion. It reported a loss of 887 million.  The stock has risen 10.3% since the company last reported earnings on Feb. 6.