Argo, Ford to launch self-driving vehicles on Lyft's ride-hailing app

·4-min read

Autonomous vehicle technology startup Argo AI and its backer and customer Ford plan to launch at least 1,000 self-driving vehicles on Lyft's ride-hailing network in a number of cities over the next five years, starting with Miami and Austin.

The first Ford self-driving vehicles, which are equipped with Argo's autonomous vehicle technology, will become available on Lyft's app in Miami later this year. Ford and Argo have had a presence in Miami for years now and have an active fleet of test vehicles.

Austin will follow next year, with the remaining U.S. cities being added to the Lyft app in 2023 and beyond, according to Jody Kelman, who heads up Lyft’s Autonomous, the company's self-driving deployment business unit. Argo currently tests in Detroit, Palo Alto, Pittsburgh and Washington, D.C.

"It's the biggest deployment certainly that we're doing and that I think anyone else is doing," Kelman said. "One thousand cars across six markets is a big leap forward in terms of scaled commercialization."

This isn't just about Argo and Ford jumping on the Lyft network. Lyft will also provide access to driving data from its entire network in exchange for a 2.5% stake in Argo AI, under terms of the agreement announced Wednesday. The partnership has boosted Argo's valuation to $12.4 billion, sources confirmed to TechCrunch. (The valuation was first noted by Bloomberg).

Lyft already captures driving data, which includes telemetry information such as hard-braking events and even collisions. Argo is most interested in two areas of data: safety information around human drivers on its app and more generally what trip movements look like across a city, Argo CEO Bryan Salesky told TechCrunch.

"This will really help us hone and figure out where the demand is and what peak demand looks like, which helps us figure out where we need to map, where we need to go, where we need to operate," Salesky said. "It helps us spend our test resources wisely."

For instance, the Lyft data should help Argo spot areas where public transit is plentiful and other neighborhoods where it's less available or entirely absent.

"We really want to take a holistic view of the demand picture using their data," Salesky said. "That helps us really be precise about where to deploy in order to have the greater benefit."

The Ford vehicles will be operated by Argo and include a human safety driver behind the wheel. Salesky did note that the vehicles will drive autonomously from pickup to drop-off point.

The agreement is an indication that Argo has made progress in its AV development and specifically its work with Ford. The automaker announced in February 2017 that it was investing $1 billion in Argo AI, which was not even six months old at the time. Since then, Argo has focused on developing the virtual driver system -- all of the sensors, software and compute platform -- as well as high-definition maps designed for Ford's self-driving vehicles.

In July 2019, VW Group announced it was investing $2.6 billion in Argo. That deal, which was finalized last summer, gives Ford and VW equal ownership stakes, which will be roughly 40% each over time. The remaining equity sits with Argo’s co-founders as well as employees. Argo’s board is comprised of two VW seats, two Ford seats and three Argo seats.

Lyft is also a beneficiary in the deal — and beyond that small equity stake. Lyft's main goal is to become the go-to ride-hailing network and fleet management platform used by any and all commercial robotaxi services. Lyft already has partnerships with other AV developers, notably the $4 billion Hyundai-Aptiv joint venture known as Motional, as well as Waymo.

Motional vehicles are on the Lyft ride-hailing network in Las Vegas. All of the vehicles have human safety operators behind the wheel. The companies have an agreement to deploy fully autonomous cars on the Lyft network in 2023.

Lyft's intention was always to lock up the rest. Unclear with which companies might commercialize the tech first, Lyft also took on the expensive pursuit of developing autonomous vehicle technology internally through a division called Level 5. That self-driving division was acquired in April by Toyota's Woven Planet Holdings subsidiary for $550 million.

As part of the acquisition agreement, Woven Planet signed commercial agreements to use the Lyft platform and fleet data.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting