Toyota to buy Lyft autonomous car division for $ 550 millionApril 27, 2021
Lyft sells autonomous vehicles division to Toyota subsidiary for $ 550 million.
Toyota subsidiary Woven Plant Holdings will buy Lyft’s “Level 5” self-driving car division for $ 550 million in cash. Of this amount, $ 200 million will be provided by Lyft in advance, and the remaining 350 million will be paid to the company over the next 5 years.
The deal is slated to close in Q3 2021, ending Lyft’s 4-year drive for autonomous vehicles. Lyft says the sale will result in $ 100 million in annual cost savings that will ultimately enable the company to make a profit.
Lyft now expects adjusted earnings before interest, taxes, depreciation and amortization in the third quarter.
Toyota has been a key player in the self-driving car race. In 2018, the Japanese automaker invested about $ 500 million in Uber as part of a deal to jointly develop autonomous vehicles. Fast forward to late 2020 and Uber has decided to transfer its self-driving technology division to Aurora Innovation. It has been decided that Aurora will partner with Toyota and supplier Denso Corp to develop vehicles for autonomous passenger calling networks.
According to one Lyft executive, the deal is an example of the changing space of self-driving technology, where automakers are now developing core technology, while tech companies are being used to connect carmakers with drivers in established fleets.
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