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On August 7, according to international media reports, Lyft, the U.S.-based taxi app company, recently announced plans to establish its very own autonomous driving division. However, Lyft's approach will differ significantly from other companies and partnerships focused on developing self-driving cars.
Based in San Francisco, Lyft mentioned that it would be opening its network to automakers and tech companies, enabling them to leverage the technology to operate driverless vehicles and gather valuable data. Lyft might even share its computer software and sensor technology with these partners.
Raj Kapoor, the company’s Chief Strategy Officer, emphasized that Lyft aims to adopt an open strategy to accelerate the environmental and safety benefits of self-driving cars. He stated that Lyft has brought in network experts to the discussion table, asserting, “We believe this is inevitable, and the world is moving towards autonomous driving. We need to take on this role.â€
Similar to other tech companies and automakers, Lyft collaborates with firms like Google’s Waymo and General Motors. However, unlike these entities, Lyft doesn’t plan to manufacture vehicles itself. Instead, it intends to create a standardized system within its network, initially available to existing partners.
The financial model for this system remains unclear, but it could potentially generate revenue through passenger fees or system-sharing charges. For instance, GM, which has previously invested $500 million in Lyft, will be invited to run its own self-driving cars on the Lyft network. The data collected by vehicles from GM and other companies will aid in building high-resolution maps for global navigation and enhancing autonomous driving computer systems.
Lyft refers to this initiative as “Level Five,†an industry term signifying full autonomy. The company anticipates having hundreds of employees working on autonomous vehicles in Palo Alto, California, by the end of 2018.
Currently operating in 350 cities worldwide, Lyft has stated that even when driverless cars hit the roads, human drivers will remain seated in the driver's seat in many areas where detailed maps aren't sufficient to guide autonomous vehicles.
At present, Lyft won’t immediately roll out driverless cars en masse. Robot fleets won’t be deployed at scale in San Francisco right away. Initially, users will notice cars appearing sporadically in small areas, offering services in isolated regions.
In fact, over the past two years, Lyft has collaborated with numerous companies. Meanwhile, its competitor, Uber, has already set up its own self-driving division and recruited many individuals from Carnegie Mellon University to develop autonomous driving tech. However, Uber has faced a series of setbacks, including a lawsuit from Google’s Waymo alleging patent infringement. Despite some resolution, Uber’s reputation has taken a hit.
In the second quarter of this year, despite Uber’s negative press, Lyft performed strongly in the U.S. market, although its valuation remains just one-sixth of Uber’s. By choosing to open up its autonomous driving network, Lyft is taking a novel route. This decision not only sidesteps the massive capital and competitive pressures associated with building a standalone autonomous driving system but also opens new avenues for profitability.