Lyft (LYFT) plans to introduce fully autonomous robotaxis powered by Mobileye’s technology on its app in Dallas by 2026, with plans for further expansion, as reported by TechCrunch.
Marubeni, a Japanese conglomerate, will finance and own the fleet, complementing Lyft’s asset-light model, while utilizing Lyft’s Flexdrive for fleet management to ensure high vehicle utilization.
Despite past setbacks with partnerships like Motional and Argo AI, Lyft is now focusing on building strategic alliances to cover the full value chain of autonomous ride-hailing, from technology to fleet management.
In a move that will redefine the ride-hailing landscape, Lyft Inc. (LYFT) has plans to introduce fully autonomous robotaxis powered by Mobileye’s (MBLY) technology to its platform in Dallas as soon as 2026, with expansion to other markets on the horizon, according to an exclusive report by TechCrunch. This development aligns with a broader industry shift towards autonomous vehicles, as evidenced by Waymo’s upcoming collaboration with Uber Technologies (UBER) for commercial robotaxi services in Austin and Atlanta, and Tesla’s (TSLA) planned autonomous ride-hail service in Austin.
Lyft’s strategy involves leveraging Mobileye’s advanced driver assistance systems, which are already integrated into vehicles from major manufacturers like Audi, Volkswagen, and Ford. However, the actual carmakers for Lyft’s robotaxi fleet remain undisclosed. The report notes that the crucial partnership here is with Marubeni, a Japanese conglomerate stepping into the autonomous vehicle space despite its diverse portfolio in industries far removed from ride-hail. Marubeni will own and finance the fleet, filling a significant gap in Lyft’s asset-light model by providing the physical vehicles necessary for the service.
Jeremy Bird, Lyft’s chief policy officer, emphasized to TechCrunch the importance of this partnership for scaling operations, with plans to expand to thousands of vehicles across multiple cities following the initial Dallas launch. Marubeni’s role extends beyond financing, utilizing Lyft’s Flexdrive service to manage fleet logistics, ensuring high asset utilization through maintenance, charging, and operational real estate management.
Lyft’s journey in autonomous vehicles has been fraught with challenges, including the dissolution of partnerships with Motional and Argo AI, the latter of which led to a significant financial hit for Lyft. Despite these setbacks, Bird sees the urgency created by Uber’s numerous AV partnerships as a catalyst for Lyft to accelerate its own strategy. Lyft is now focusing on forging strong relationships not just with AV technology developers but also with fleet owners, aiming to cover the entire value chain from demand generation to marketplace operations.
This strategic pivot is not just about keeping pace with competitors like Uber, who have secured deals with numerous AV innovators, but also about establishing a robust ecosystem where Lyft can thrive in the autonomous future. While Lyft has only one other confirmed AV partner, May Mobility for Atlanta, the company is actively engaging with major players in the autonomous vehicle sector. This approach underscores Lyft’s commitment to becoming a significant player in the autonomous ride-hailing market, leveraging partnerships to overcome past hurdles and capitalize on emerging opportunities.
Price Action: Lyft’s stock is seeing some positive momentum today, currently trading up 5.15% to $14.90. Investors may be gearing up for the company’s upcoming earnings report, which is scheduled for Tuesday, February 11, 2025, before the market opens.
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