Toyota acquires US-based Lyft’s autonomous car division for $550 million

Toyota is acquiring the autonomous car division of ride-hailing platform and Uber rival Lyft for $550 million, as the self-driving car industry begins to grow.

Woven Planet Holdings, a subsidiary of Toyota, will acquire Lyft’s self-driving division, Level 5, for $550 million in cash.

Toyota has provided $200 million to Lyft and the $350 million will be paid out to Lyft over five years, The Verge reported on Tuesday.

The ride-hailing company says it will see an annual savings of $100 million of non-GAAP expenses, which it claims will better position it to ultimately earn a profit. Toyota has also agreed to use Lyft’s fleet data and platform for any commercial service it eventually launches under its Woven Planet subsidiary.