Lyft and Magna International Inc. (NYSE: MGA), a major automotive supplier, announced a partnership to develop and manufacture autonomous vehicles. The collaboration between the two will be a joint funded and operated partnership.
Lyft has been developing self-driving technology as well trying to integrate it on to its vehicles to compete against companies such as Alphabet’s Waymo and Uber Technologies.
Magna will be investing $200 million into Lyft as part of a multi-year partnership deal. In the beginning, the self-driving systems will be deployed on to Lyft’s network and eventually for the entire automotive industry, Magna said on a statement.
The two are planning to develop level 4 autonomous vehicles, meaning the vehicle will require no human interaction. The technology will integrate Lyft’s network of more than five billion miles traveled per year into the system.
"There is a new mobility landscape emerging and partnerships like this put us at the forefront of this change," said Swamy Kotagiri, Magna Chief Technology Officer. "Lyft's leadership in ridesharing and Magna's automotive expertise makes this strategic partnership ideal to effect a positive change as a new transportation ecosystem unfolds."
Magna’s $200 million investment in Lyft is part of the $1 billion funding round led by Google’s Capital G. Magna’s investment now brings Lyft’s valuation at approximately $11.7 billion, according to The Verge.
Lyft and Magna have not announced a specific date when the vehicles will launch onto roads or begin public road testing, but in the statement, Magna says the vehicles should be expected to come in the next shortcoming years.
"This is an entirely new approach that will democratize access to this transformative technology." said Lyft CEO Logan Green.