The two companies announced on Monday that Lyft will sell its self-driving car unit to Woven Planet, a subsidiary of Toyota, for $550 million in cash.
After the market, Lyft’s stock price rose by more than 2%.
According to the news, as part of the transaction, Lyft and Woven Planet will work together to improve the safety of autonomous driving technology.
Lyft co-founder and president John Zimmer said in a statement: “This transaction not only allows Lyft to focus on the development of a leading autonomous platform and transportation network, but this partnership will help extend our profit schedule. “
The press release stated that the company expects that the transaction will net the elimination of $1
The announcement came a few months after Lyft rival Uber sold its autonomous driving unit to startup Aurora, which was backed by companies such as Hyundai and Amazon. The transaction brings the value of the division to approximately US$4 billion, including Uber’s investment of US$400 million in Aurora.
Subscribe to CNBC on YouTube.