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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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