Private transport company Lyft has agreed to sell its autonomous driving division to Toyota for $ 550 million. The decision comes a few months after the competitor Uber follow the same path, when it sold, in December 2020, its area of ​​autonomous cars for Aurora Innovation.

According to Lyft, the sale of the autonomous driving area will help the company to "achieve a profit ahead of schedule". The deal involves the payment of $ 200 million in advance by Woven Planet Holdings, a subsidiary of Toyota. The rest will be paid in installments over the next five years.

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Lyft's decision to sell autonomous driving division should help the company achieve profitability ahead of time. In the image: A Lyft car parked on a tree-lined street in New York
Lyft's decision to sell autonomous steering division should help the company achieve profitability ahead of schedule. Image: Roman Tiraspolsky / Shutterstock

The sale is also expected to help the company save $ 100 million in operating costs. With revised profitability expectations for a more positive picture, Lyft now expects to achieve good numbers as early as the third quarter of this year - previously, the forecast was for profit starting in the fourth quarter.

Similar profit forecasts were made by Uber. Both companies have “finely tuned” their finances, impacted by the pandemic of Covid-19, and decided to eliminate or reduce more costly operations, given that the new coronavirus brought about a significant drop in its main businesses - in this case, private rides.

With the announcement, Lyft's shares were up 3% at the close of trading on Monday (26).

Source: Wall Street Journal