Toyota Motor Corp. is a step closer towards achieving its self-driving technology plans with the acquisition of Lyft’s Level 5 automation unit for $550 million, Reuters reported.

  • The deal will give Toyota a direct presence in Silicon Valley and London, and access to Lyft’s 300 employees in the United States.
  • Toyota’s “Woven City” smart-city project will also gain from the deal as it intends to continue investing and growing its workforce.
  • The Japanese carmaker in February announced plans to develop and build autonomous minivans for ride-hailing networks. At present, it offers Level 2 automation with advanced driver assistance technology.
  • Lyft will receive $200 million cash upfront, with the remaining $350 million to be paid over five years. It will also erase $100 million in annual net operating costs.
  • The ride-hailing firm said the sale will bring about profits in the third quarter as the company recovers from the COVID-19 pandemic.

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