Toyota to acquire Lyft’s driverless car division
- The Asian auto manufacturer is making a $550 million deal to acquire Lyft's self-driving vehicle division.
- Toyota will pay Lyft $250 million in advance, while the remaining $350 million will be paid out over the course of five years.
Toyota Motor Corporation is making quite a deal in the driverless car market; it is buying Lyft's self-driving vehicle division for $550 million.
The Asian auto manufacturer will pay $250 million in advance, while the remaining $350 million will be paid out over the course of five years. Toyota is making the acquisition through its subsidiary Woven Planet, a company dedicated to developing autonomous driving and advanced mobility technologies.
The acquisition of will also includes multi-year non-exclusive commercial agreements between the ride-hail company and Woven Planet.
In addition to enhancing safety, this partnership for Lyft's Level 5 automation will help expedite the development of self-driving technology and the commercialization of automated vehicles.
According to the press release, Lyft spent nine years building a transportation network that is uniquely capable of scaling AVs. The Level 5 team at Lyft will join Woven Planet to deliver safe mobility technology.
Woven Planet and researchers at Toyota Research Institute have already established a center for advanced safety technology, automated driving, and software development. The Toyota subsidiary is set to take responsibility for autonomous vehicle development.
Additionally, the commercial agreement allows Woven Planet to use real-world driving data Lyft collects from its fleet. The Open Platform team at Lyft, which specializes in the deployment and scaling of third-party self-driving technology on the Lyft network, is being renamed Lyft Autonomous.
"With Lyft Autonomous, we can combine the power of Lyft's hybrid network, marketplace engine, and fleet management capabilities to help our AV partners scale deployment with the highest revenue per mile at the lowest cost per mile," said Logan Green, Lyft's Chief Executive (CEO) and co-founder.
"We look forward to continuing to partner with the best autonomous vehicle companies to bring this technology to market."
The acquisition of Level 5 will allow Lyft to focus on advancing its Autonomous platform and transportation network. Lyft expects to remove approximately $100 million of net annual operating expenses with AVs.
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