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Lyft to develop self-driving cars, test subscription service

LYFT

Ride-hailing network startup Lyft is teaming up with automotive supplier Magna for a multi-year collaboration to fund, develop, and manufacture self-driving systems. Resulting autonomous vehicles will be added to Lyft’s fleet in the coming years, and Magma plans to use its expertise to develop a range of technologies which could “benefit the entire global mobility ecosystem,” according to the statement. The transportation company will lead the co-development of the systems at its engineering center in Palo Alto, with Magna engineers leading the manufacturing process. “Together with Magna, we will accelerate the introduction of self-driving vehicles by sharing our technology with automotive OEMs [original equipment manufacturers] worldwide,” said Lyft CEO Logan Green. Magna also announced it will be investing $200 million in Lyft, which is part of a $1 billion round of financing for the startup.

Lyft also revealed it has been testing a subscription service primarily meant for users who spend up to $450 on ride-hailing a month. All-access passes with up to 30 standard rides are on offer for $199 or $300 a month, as well as a 60-ride pass for $399. The passes cover individual rides costing up to $15. Green said his company is intending to “move the entire industry from one based on ownership to one based on subscription” and that it hopes users will come to “rely on the Lyft network for all [their] transportation needs.”

 

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