To save operating expenses in areas beyond its core ride-sharing business, Lyft has agreed to sell its autonomous-driving unit to Toyota.
The divestment will allow Lyft to partner with Toyota to develop vehicles for its autonomous ride-hailing networks. The partnership will further the companies’ mission to advance mobility technologies on a global scale.
This post is based on the Industry Week article, Lyft to sell its autonomous-driving unit to Toyota for $550 million, by Agence France-Presse, April 27, 2021; the Forbes article, Lyft, Spotify And Snap: Three Stocks That Look More Dangerous Post 1Q21 Earnings, by David Trainer, May 24, 2021; and the YouTube video in the Spotlight. Image source: Shutterstock/chombosan
1. What category of capacity constraint is being resolved by Lyft’s divestment decision?
Guidance: The divestment resolves a competency constraint for Lyft. The company is known for its ride-sharing services but not for making autonomous driving vehicles.
2. In what ways is Lyft’s divestment decision a strategic partnership with Toyota from a supply chain perspective?
Guidance: Lyft’s divestment decision allows Lyft and Toyota to bring together people, resources, and infrastructure to configure a supply chain to advance autonomous mobility technologies globally.
Lyft will focus on its core ride-sharing operations at the downstream end of the supply chain while Toyota will develop vehicles for the autonomous ride-hailing network at the upstream end of the supply chain.