Toyota buys self-driving car division of Lyft

Toyota Motor acquires Lyft’s autonomous driving technology division for $ 550 million.

The purchase will not only give Toyota access to the Level 5 automation system, but will also provide more than 300 professionals in this area. The company does not hide that the personnel component is key in the deal.

The Japanese automaker recently formed a subsidiary company, Woven Planet, which specializes in developing self-driving cars. The company’s management confirmed that it plans to further expand the development team and acquire third-party developments. However, no timing or specific plans for future acquisitions have been released.

For Lyft, the deal will enable it to become profitable faster and remove the burden and risk of developing expensive technology that has not yet entered mass production. The buyer will transfer part of the amount – $ 200 million – immediately, and the remaining 350 million will be paid within five years.