Uber has bought a startup that makes a service that allows users to pay for rides.
The acquisition, announced Tuesday, is the first by a technology company on its board in years and comes as the company is struggling to compete with ride-hailing competitors like Lyft, and other companies that allow users to use their smartphones as payment devices.
Uber says the acquisition will allow it to accelerate its ride-sharing business, which has been struggling in the face of increasing competition from ride-service providers like Lyft.
The move is an attempt to expand Uber’s footprint in the ride-share space, which is expected to be worth $4.5 billion by 2020, according to Bloomberg.
Uber is also expanding into areas that have traditionally been left to ride- and car-sharing companies, such as in San Francisco, which it acquired in 2016 for $680 million.