Toyota buys Lyft's self-driving technology for $550 million

Toyota is on its way to explore and achieve their goals in relation to self-driving technologyLyft Inc will receive $200 million cash and $350 million
...
The logo of Toyota Motor Corp. (Picture credit: Reuters)
The logo of Toyota Motor Corp. (Picture credit: Reuters)

Lyft Inc sold its self-driving technology unit to Toyota Motor Corp for $550 million. With this acquisition, the Japanese carmaker is ready to step up its automation goals with its recently created Woven Planet division. The acquisition of Level 5 automation will also provide Toyota access to more than 300 employees of Lyft's essentially complete autonomy technology division.

“This is the first step of establishing and bringing together the people. Obviously building technology and product requires people, and that's much what this acquisition is about," Woven Planet chief executive James Kuffner said as reported. According to reports Kuffner added that this move will position Toyota directly in the Silicon Valley, London and also help it to expand the smart-city project, Woven City at the base of Mt. Fuji.

Also check these Vehicles

Find more Cars
Toyota Camry 2024 (HT Auto photo)
UPCOMING
Engine Icon2487 cc FuelType IconPetrol
₹ 50 Lakhs
Alert Me When Launched
Toyota Bz4x (HT Auto photo)
UPCOMING
BatteryCapacity Icon72.8 kWh Range Icon405 Km
₹ 70 Lakhs
Alert Me When Launched
Toyota Glanza (HT Auto photo)
Engine Icon1197.0 cc FuelType IconPetrol
₹ 7.18 - 9.45 Lakhs
Compare
View Offers
Toyota Belta (HT Auto photo)
UPCOMING
Engine Icon1462 cc FuelType IconPetrol
₹ 10 Lakhs
Alert Me When Launched
Toyota Camry (HT Auto photo)
Engine Icon2487.0 cc FuelType IconMultiple
₹ 46.17 Lakhs
Compare
Toyota Fortuner (HT Auto photo)
Engine Icon2755.0 cc FuelType IconMultiple
₹ 33.43 - 51.44 Lakhs
Compare
View Offers

Kuffner also said Woven Planet, which was set up in January, intends to continue investing and growing the team, however, he refrained from saying anything about any timeline or future acquisition plans. According to reports, Takaki Nakanishi, an auto industry analyst and chief executive of the Nakanishi Research Institute, said that this move will help Toyota to achieve its goals which includes development of self-driving technology.

Toyota owns a stake in Didi Chuxing, China’s top ride-hailing firm and also Southeast Asia’s Grab. Earlier it had a stake in Uber Technology Inc, Lyft’s larger rival, but transferred it after Uber sold the unit to a car startup Aurora in December. The company said in February that it will make autonomous minivans with Aurora and Denso Corp, the brand’s long time supplier partner, for ride-hailing networks.

The Lyft Driver Hub in Los Angeles, California. (Picture credit: Reuters)
The Lyft Driver Hub in Los Angeles, California. (Picture credit: Reuters)

This deal will help Lyft to put its focus back on its core business after a demoralizing pandemic year. Out of $550 million, it will receive $200 million cash upfront and the rest of the amount will be paid over a term of five years. However, the organization did not share how it plans to invest the funds. About $100 million of the net operating cost will be removed through this sale, said Lyft. The company plans to carry on its work on utilization of autonomous vehicles by offering various services such as customer interface, routing, cleaning and maintenance partners’ autonomous vehicle fleets. This move will increase their revenue, the company added.

Lyft in partnership with Motional and Alphabet Inc’s Waymo which is a joint venture between Hyundai Motor Co and Aptiv allows customers to book self-riding vehicles in selected cities. The firm will continue to collect real-world driving data through some 10,000 vehicles which it rents out to customers and ride-hail drivers which will also be shared with Woven Planet.

Despite being a self-driving service provider, Lyft believes that human ride-hail drivers will remain important as they help customers during bad weather, peak demand hours or areas where self-driving cars face difficulty to navigate.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 27 Apr 2021, 14:58 PM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.