Lyft will sell its self-driving car unit to Woven Planet, a subsidiary of Toyota, for $ 550 million in cash, the company said on Monday.
Lyft’s shares rose more than 2% after hours.
Under the deal, Lyft and Woven Planet will work together to improve the safety of automated driving technology, according to a press release.
“This transaction will not only allow Lyft to focus on further developing our leading autonomous platform and transportation network, but this partnership will also help extend our profitability schedule,” said Lyft co-founder and president John Zimmer in a statement.
The company anticipates the transaction will result in savings of $ 100 million in annualized non-GAAP operating expenses on a net basis, according to the news release. Because of that, Zimmer added that Lyft expects to be profitable on an adjusted EBITDA basis in the third quarter if the deal closes as expected in the third quarter and the pandemic continues to recover.
The announcement comes just months after Lyft rival Uber sold its own self-driving unit to startup Aurora, backed by companies like Hyundai and Amazon. The deal valued the unit at around $ 4 billion and included a $ 400 million investment by Uber in Aurora.
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