Lyft Expands Cloud Services Contract With Amazon’s AWS to Streamline Operations Before Possible IPO

11:52 AM, Feb 26, 2019 — Amazon’s (AMZN) web services business has agreed to provide extended cloud computing services to Lyft as the ridesharing company seeks to enable its self-driving technology and expand growth in its scooters and bicycle offerings.

Lyft “is leveraging the breadth and depth of AWS’s services, including database, serverless, machine learning, and analytics, to automate and enhance on-demand, multimodal transportation for riders and drive innovation in its autonomous vehicles business,” the closely held company said in a statement Tuesday.

AWS said the San Francisco-based firm migrated to a microservices architecture to create more than 150 microservices that scale workloads while reducing complexity in the cloud.

Lyft already runs operations including backend platform systems, financial applications and its website on AWS. It also relies on the Amazon DynamoDB database to support processes including a ride-tracking system that enables the company to provide vehicle routing.

“With AWS, we don’t have to focus on the undifferentiated heavy lifting of managing our infrastructure, and can concentrate instead on developing and improving services,” said Lyft Chief Technology Officer Chris Lambert.

Services are available to roughly 95% of the US population and select cities in Canada, Lyft said, with more than 50 million rides a month. It could become the first ride-hailing company to sell shares in the US, with press reports indicating the firm could hold an initial public offering in the first half of this year. Reuters said the company could have a market value of more than $20 billion.

Lyft competes in the US and Canada with loss-making Uber, which operates in more than 60 countries and is also positioned in the food delivery business, air taxis and freight hauling.

“The rise of ridesharing companies like Lyft has been transformational — changing the transportation model from one that revolved around cities to a new personalized, convenient, on-demand experience,” said Mike Clayville, vice president of commercial sales at AWS.

Companies: Amazon.com, Inc.

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