Lyft Is Selling Autonomous Driving Unit to Toyota, Sees Q3 Profitability

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Lyft has signed a deal to sell Level 5, the company’s self-driving vehicle unit, to Toyota’s Woven Planet Holdings unit for about $550 million in cash. The ride sharing company also said that removing the costs involved in running Level 5 will accelerate the company’s path to profitability.

Lyft said it would receive $200 million upfront and $350 million over a five-year period. Lyft also said the deal will remove $100 million of annual non-GAAP operating expenses—mostly from reduced R&D spend—“which will accelerate Lyft’s path to adjusted Ebitda profitability.”