Autonomy Race: Lyft Wants In

Lyft announced partnership with nuTonomy this week. NuTonomy is “building software to power tomorrow’s driverless fleets.” So far, nuTonomy’s full-stack software solution for automated driving is available on 5 different models located on only 3 continents, and the U.S. isn’t one of them.
According to the press release, nuTonomy began testing their electric cars in the U.S. at the beginning of this year. The R&D testing facilities are in Boston, MA where data will be collected along with Lyft’s valuable insights into U.S. driving patterns and passenger desires.
The Mitsubishi i-MiEV is one of the test cars and will most likely be the U.S. model used for early testing. On the nuTonomy website the makes of Peugeot and Renault present a variety of car makes.

I believe this move by Lyft is smart and visionary. GM’s vision enabled them to acquire Cruise Automotive for $1 billion dollars, which at the time Cruise Automotive’s package worked on only 1 car make, Audi.

Thus, the valuation may be too steep for Lyft to acquire nuTonomy, but the partnership will save Lyft millions in autonomous software development and no OEM hardward to manufacture. If nuTonomy extends its software to other makes and models, the best chances are mid-tier sedans, since luxury brands like BMW and Mercedes are currently working on their own technologies. A mid-market focus may also bode well for Lyft’s relaxed and casual marketing that attract passengers who are middle to lower-middle class riders. We’ll see which U.S. brand automakers play into nuTonomy’s automation hands.