Toyota buys self-driving unit from Lyft for $550M

TOKYO — Toyota Motor Corp. has acquired the self-driving division of American ride-hailing company Lyft for $550 million, in a move that highlights the Japanese automaker’s ambitions in that technology.

The acquisition, announced Tuesday, was carried out by Woven Planet Holdings, a Toyota subsidiary that began business in January and focuses on innovations and investment in projects such as “smart cities,” robotics and automated driving.

Of the payment, $200 million will be paid upfront, and $350 million over a five-year period, according to Toyota.

The Woven Planet project will bring together engineers and researchers in mobility services, software and sensor assets and automated driving systems to further develop the technology, according to Toyota.

“This deal will be key in weaving together the people, resources and infrastructure that will help us to transform the world we live in through mobility technologies that can bring about a happier, safer future for us all,” said Woven Planet Chief Executive James Kuffner.

Woven Planet and Lyft also signed commercial agreements to use the Lyft system and fleet data to speed up commercialization of the technology.

Toyota also said the deal will mean Woven Planet will have Tokyo, Palo Alto,

California, and London as locations.

A centerpiece of Woven Planet is the Woven City, which held a ground-breaking ceremony in Japan recently, to build a community showcasing intelligent homes, autonomous vehicles and other mobility products for Toyota’s workers and other people.

All the world’s top automakers are working on technology to make vehicles smarter, cleaner and more connected.

Also Tuesday, Toyota announced it will work with Japanese automakers Suzuki Motor Corp., which makes small cars, Subaru Corp., Daihatsu Motor Co. and Mazda Motor Corp. on next-generation vehicle communications devices.