Lyft to sell autonomous driving unit to Toyota for $550 mn

Lyft is selling its autonomous driving division to a unit of Japan's Toyota

Lyft is selling its autonomous driving division to a unit of Japan's Toyota

US ride-hailing service Lyft agreed to sell its autonomous driving division to a unit of Japan's Toyota for $550 million, the companies said Monday.

The move follows a similar divestment from Uber last year, with ride-sharing firms focusing on core operations as they struggle during the coronavirus pandemic.

Lyft will receive some $550 million in cash, with $200 million paidup front and $350 million over five years under the agreement.

"This deal will be key in weaving together the people, resources, and infrastructure that will help us to transform the world we live in through mobility technologies that can bring about a happier, safer future for us all."

The buyout marks Woven Planet's first major deal, according to a statement.

Work on its flagship project, "Woven City," was launched in February. The laboratory city, built on the site of a disused Toyota factory at the foot of Japan's Mount Fuji, will enable future technological development and testing.

Both Lyft and Uber had been working on their own technology for autonomous cars, but the firms have been hit hard by the slowdown in ride sharing during the pandemic.

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