Lyft, Waymo strike self-driving car deal as Uber rivalry intensifies

The company that began as Google’s driverless car project has reached a deal to collaborate with ride-hailing app Lyft on tests of self-driving vehicles.

The deal intensifies the bitter rivalry between Waymo, a division of Google parent Alphabet, and ride-hailing market leader Uber.

It also gives Lyft a powerful new ally in the self-driving car race against its more well-funded adversary Uber. And it places Waymo a step closer to becoming a business with real-world customers.

Although details of the alliance between Waymo and Lyft were not released, the deal is expected to involve a pilot program in which consumers will ride in vehicles equipped with Waymo’s self-driving system.

“Lyft’s vision and commitment to improving the way cities move will help Waymo’s self-driving technology reach more people, in more places,” Waymo said in a statement.

Lyft opponent Uber is already providing rides in partially self-driving vehicles in Arizona and Pittsburgh.

But the future of Uber’s autonomous car project is in jeopardy after Waymo accused former Google car leader Anthony Levandowski of stealing its trade secrets for use at Uber.

A federal judge recently referred the case to the U.S. Department of Justice for possible prosecution, which could eventually deal a death blow to Uber’s self-driving car ambitions.

The latest deal also expands Lyft’s quiver of alliances with self-driving powerhouses. General Motors, a major investor in Lyft, recently said it would soon begin testing self-driving vehicles through the app’s network.

“The announced partnership between Waymo and Lyft does not affect our existing relationship with Lyft,” GM said Monday in a statement. “We continue to work with Lyft on various aspects of our business.”

Evercore ISI analyst Arndt Ellinghorst said in a note to investors that it’s “likely that Waymo’s motivation for the partnership would be to access the established base of Lyft’s ride-hailing customers as opposed to building a network from scratch.”

Waymo began accepting applications from Phoenix-area residents interested in testing Chrysler Pacifica Plug-In Hybrid minivans outfitted with Waymo’s autonomous car sensors.