Here's a question nobody thinks about until it's too late: How do you stop fraudsters from hijacking ride-hailing accounts without making the login process so annoying that real customers bail halfway through? Ericsson (ERIC) thinks it has an answer, and it involves verifying your identity without you doing anything at all.
Vonage, the communications tech company owned by Ericsson, announced Thursday it's expanding its partnership with Freenow by Lyft Inc. (LYFT) to bring silent authentication technology to U.S. customers. The idea is straightforward: instead of texting you a code or asking for a password, the app checks your identity using live signals from your mobile network. You open the app, it verifies you're actually you through your carrier connection, and you're on your way.
This matters because fraud in ride-hailing has become a serious problem. These platforms store payment information, process thousands of transactions daily, and move money fast. That makes them attractive targets for account takeovers, SIM swap scams, and synthetic identity schemes. The traditional fix has been adding more verification steps, which works but also makes the experience clunkier. Silent authentication tries to thread the needle by adding security layers that run invisibly in the background.
Under the expanded deal, Freenow uses Vonage Network APIs to detect when someone swaps their SIM card and to confirm user identities in real time. These checks happen automatically during critical moments like logins and payments, keeping the experience smooth while blocking bad actors before they can do damage.
Tim Ossenfort, EVP of Technology and Data at Freenow by Lyft, called the U.S. launch "a transformative milestone" for the European taxi app, which operates in nine markets across more than 180 cities.
Vonage CEO Niklas Heuveldop added that "network powered solutions by Vonage are transforming the mobility industry globally, redefining the rider and driver experience at scale."
The announcement comes as Ericsson reshapes its broader operations. The company recently revealed plans to eliminate up to 1,600 jobs in Sweden as part of a strategic pivot toward efficiency and network-driven enterprise services. The move signals Ericsson's intent to lean harder into technologies like the network APIs powering Freenow's authentication system.
Lyft shares dipped 0.11% to $18.47 in premarket trading Thursday, while Ericsson shares rose 0.42%.
