Ride-hailing service Lyft said it plans to sell its autonomous driving division to a unit of Toyota.
The $550 million sale to Woven Planet Holdings, Toyota’s autonomous tech subsidy, will pay Lyft $550 million as part of the deal. Lyft said it receive an initial payment of $200 million that is subject to certain customary closing adjustments and that the remaining $350 million will be paid in cash over a five-year payout period.
The transaction includes a multi-year non-exclusive agreement between the two parties to accelerate the development and enhance the safety of self-driving technology.
The deal, Toyota said, “assembles a dream team of world-class engineers and scientists” in the autonomous driving space for Woven Planet
Lyft expects the detail to help it turn a profit sonner than had previously been expected.
“Not only will this transaction allow Lyft to focus on advancing our leading Autonomous platform and transportation network, this partnership will help pull in our profitability timeline,” said Lyft’s president, John Zimmer, in a statement.
Lyft’s exit from the autonomous vehicle space comes on the heels of rival Uber Technologies’ similar decision late last year.
(Photo: Accura Media Group)
