Intellectual property created as part of the deal will be jointly shared between the two companies, while Lyft will have access to Magna's existing technology for its self-driving cars. The Canadian auto-parts supplier said late on Wednesday it would invest $200 million in Lyft and work with the firm to co-develop self-driving cars.
Logan said that the resulting self-driving vehicle technology will also be available, presumably for purchase, by other auto companies who might not have their own self-driving tech team.
The alliance comes amid reports that Lyft is gaining ground on United States ride-share market leader Uber, which has seen its image dented by scandal and litigation. Apple is among companies with permits to test self-driving cars in California.
"Together with Magna, we will accelerate the introduction of self-driving vehicles by sharing our technology with automotive (original equipment manufacturers) worldwide", Lyft chief executive Logan Green said in a joint release.
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In addition to self-driving vehicles that will be deployed on Lyft's own ride-sharing network in the coming years, Magna can deploy the technologies across a wide range of uses to benefit the entire global mobility ecosystem.
"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. Autonomous vehicles aren't yet ready to replace human drivers, and parcel delivery may go driverless long before taxis. Last spring the ride hailing company partnered with Waymo, Google's self-driving company, to develop self-driving auto technology.
While Uber has assembled a massive internal team of engineers building self-driving vehicles, Lyft got off to a slower start.
Magna will take the lead in manufacturing the Lyft vehicle's self-driving system, outfitting vehicles from a variety of brands to enable them to operate on the Lyft network.