Lyft sells its autonomous driving business to Toyota

A car with a Lyft logo in its window drives down a street as the company prepares for its upcoming IPO in New York, US, March 19, 2019. REUTERS/Lucas Jackson TPX IMAGES OF THE DAY-RC1CE4F47580

Lucas Jackson / Reuters

There is one less player in the autonomous driving market.Earlier Lyft It is officially announced that it will sell its Level 5 autonomous driving R&D team to Toyota for a price of 550 million U.S. dollars. It is reported that Toyota will pay Lyft US$200 million first, and then make up the remaining 350 million in the next 5 years. If all goes well, the acquisition will be officially completed in the third quarter of this year.

After selling Level 5, Lyft’s R&D expenditure will drop significantly, which will also help it achieve profitability. “If the transaction can be completed in the expected time, and the epidemic can also be relieved, we think Lyft is expected to achieve adjusted profitability in the third quarter of this year.” The company’s co-founder and president John Zimmer said.

In fact, Lyft is not the first ride-sharing service provider to sell its self-driving business. Prior to this, Uber had also sold its self-driving unit to the startup Aurora. Interestingly, Toyota is already cooperating with Aurora to develop self-driving taxis. Now, after the introduction of Level 5, the strength should continue to increase, and the potential opportunities for cooperation with different ride sharing services when the finished product is launched in the future will also further increase.

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