Toyota buys Lyft’s autonomous car group for $550m
- Reference: 1619499492
- News link: https://www.theregister.co.uk/2021/04/27/toyota_buys_lyfts_autonomous_cars/
- Source link:
The deal will see Lyft exit the increasingly crowded field of autonomous car contenders and focus on partnering with self-driving companies that want to use its app.
[1]
Initially, Toyota's Woven Planet subsidiary will pay US$200m for Lyft's Level 5 in the division's first ever major deal. The other US$350m will be paid over five years.
The deal is scheduled to close in Q3 2021 and will allow Lyft to hit its profitability target one quarter earlier than expected. The sale will negate $100m of Lyft's annual net operating costs and if all goes well, the company can report Q3 profit on an adjusted earnings basis before interest, taxes, depreciation and amortization.
[2]
"The deal will bring together world-class scientists and software engineers from Level 5, Woven Planet, and researchers from Toyota Research Institute, Inc. ("TRI") already working together with Woven Planet," said Toyota in a [3]canned statement . "The resulting combined ‘dream team' of approximately 1,200 will represent one of the most diverse, well-resourced and talented groups in this field."
As of April, Woven Planet Group boasted [4]760 employees . The acquisition also means the Woven Planet Group, which aspires to blend the best bits of Toyota and Silicon Valley, moves geographically beyond its Tokyo Headquarters into Palo Alto and London.
That's ride on time: Lyft, Uber to continue taxi app service in Cali after appeals court hits pause on AB5 brouhaha [5]READ MORE
Toyota's made ride-sharing company acquisitions in the past. The Japanese company has a stake in China's Didi Chuxing and Singapore-based Grab, and has previously invested in Uber. Toyota also isn't new to self-driving cars. In February the Japanese automaker [6]teamed up with San Francisco-based startup Aurora to turn a fleet of Toyota Siennas into ride-sharing autonomous vehicles.
[7]
Last February, Toyota broke ground on a smart city project called " [8]Woven City ," at the base of Mount Fuji. The very small city forbids private vehicles in favour of Toyota e-Palettes, battery-electric vehicles that offer autonomous mobility as a service. ®
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[3] https://global.toyota/en/newsroom/corporate/35244091.html
[4] https://www.woven-planet.global/company-information#group-stat
[5] https://www.theregister.com/2020/08/20/uber_lyft_appeal/
[6] https://www.reuters.com/article/us-autos-autonomous-toyota-idUSKBN2A92G0
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[8] https://www.theregister.com/2021/02/24/toyota_smart_woven_city_japan/
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Re: When is a city not a city?
This particular city sounds as though it may turn out to be a latter day Japanese version of The Village.
' Be seeing you'
Toyota Land Cruiser
If they bring out an autonomous Toyota Land Cruiser - the insurgents' vehicle of choice just got a bit more deadly
Re: Toyota Land Cruiser
To whom?
The one with the bandolears..
Toyotas acquisition
May have kicked off the beginning of the great winnowing in this sector. There are only a few players who could exploit this effectively. I would expect the competition to buy the other autonomous car programs (at least the ones that are not vaporware) over the next year or 2.
Toyota has hybrid fairly licked, as well as E Cars.
Musk might have electric and some automation - but not the volume
Where are Ford/GM/Volkwagen/Fiat crysler /Renault Nissan and Daimler-Benz?
Re: Toyotas acquisition
>Where are Ford/GM/Volkwagen/Fiat crysler /Renault Nissan and Daimler-Benz?
Ford and GM have largely retreated back to North America to fight over the full-size pickup truck market, which is still a high volume, high margin sector that uses its penchant for excessive waste as a selling point. Ironically this is the segment that would probably welcome full autonomy the most, given how stuffed those vehicles are with distracting gadgetry now.
Everyone else, I presume, is just waiting for the smaller companies to do all the work and then go bust, so they can scoop up the completed research for bargain prices. Toyota doesn't need to wait though, as they've effectively consumed the entire mid-size passenger car market in America and have more than enough money to just do whatever they please at this point.
When is a city not a city?
When it is so small that it is really a hamlet!