The price paid is $550 million.
Uber has also moved away from self-driving technology development.
The pandemic’s effects are far-reaching. One business that has felt these effects are ride-sharing companies. Lyft, a direct competitor to Uber, has seen its profitability take a hit in the last year. As such, it has decided to sell its self-driving division to a unit of Toyota.
Both Lyft and Uber have invested heavily in autonomous driving technology, much of it supported by various investors. In fact, Toyota invested some $5000 million in Uber with a plan to jointly develop the technology. Last December, Uber sold their division to Aurora Innovation Inc but this has not deterred Toyota from keeping at it.
The Wall Street Journal reports (subscription required) that Toyota’s subsidiary, Woven Planet Holdings, will pay Lyft $200 million upfront plus another $350 million over the next five years to acquire the unit. Lyft’s shares rose nearly 3% following the announcement.
Interestingly, a Lyft executive is reported as saying that “the industry was becoming realistic: letting car makers develop the underlying technology, while tech companies help connect them to riders.”