Toyota to get Lyft’s self-driving unit

Toyota’s Woven Planet division will acquire rideshare firm Lyft’s self-driving technology unit for US$550 million.

The acquisition of Level 5 automation will also provide Toyota access to the US ride-hailing firm’s more than 300 employees.

Toyota will have a direct presence in Silicon Valley and London and expand smart-city project Woven City at the base of Japan’s Mount Fuji, effectively helping it ride through dramatic changes expected in the mobility industry and major centres, Woven Planet chief executive James Kuffner says, Reuters reports.

The deal is expected to be finalised later this year.

Level 2 automation is offered by Toyota with advanced driver assistance tech and it has other self-driving projects, so the Lyft acquisition will help Toyota expand its autonomous vehicle (AV) plans.

Toyota can also use Lyft’s fleet data and platform for any commercial service it launches under Woven Planet.

The Lyft unit’s sale reportedly allows Lyft to ditch an expensive side of its business and to focus on reviving its main services such as managing, maintaining and cleaning partners’ AV fleets after a COVID-19 impacted year.

It will receive US$200 million cash up front, with the remaining US$350 million paid over five years, according to Reuters.

Mass adoption of AVs still appears a way off, in spite of some predictions many would be in use by now.

Those operating tend to be on restricted circuits or private roads, usually within a facility such as a campus or retirement complex.