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Wednesday, 28 April 2021 20:42

Toyota Acquires Lyft’s Self-Driving Unit for More Than Half a Billion Dollars

Written by Joey Klender, Teslarati

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Toyota Motor Corporation will acquire Lyft’s self-driving unit, an announcement confirmed April 26.

The cost of the deal is $550 million, and Toyota’s new Woven Planet division will handle the Japanese company’s automation ambitions.

 

Lyft will receive $200 million in cash from Toyota up front, and the remaining $350 million of the deal will be paid over the next five years.

 

“The transaction is also expected to remove $100 million of annualized non-GAAP operating expenses on a net basis---primarily from reduced R&D spend---which will accelerate Lyft’s path to Adjusted EBITDA profitability,” Lyft said in a press release.

 

Toyota will not only acquire the self-driving unit, but the deal will also provide the automaker with Lyft’s 300 employees.

 

“Not only will this transaction allow Lyft to focus on advancing our leading Autonomous platform and transportation network, this partnership will help pull in our profitability timeline,” said John Zimmer, co-founder and president of Lyft. “Assuming the transaction closes within the expected timeframe and the COVID recovery continues, we are confident that we can achieve Adjusted EBITDA profitability in the third quarter of this year.”

 

Woven Planet Chief Executive James Kuffner told reporters April 27, “This is the first step of establishing and bringing together the people. Obviously, building technology and product requires people, and that’s much what this acquisition is about.”

 

Kuffner is likely referencing...


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