Development of self-driving cars is that race in the field of automobiles where everyone wants to participate and also win at any expense. Autonomous vehicles are more of a trend now than simply a technological advancement. In order to attain victory in this race, prominent automakers are teaming up with Silicon Valley experts. The Lyft Waymo collaboration is one such initiative for autonomous vehicle development. This collaboration seems to be a promising one as both the parties involved are good at what they do. Apart from this, it is assumed that these companies have adequate financial support. It is speculated that the end result of this deal will be efficient taking into consideration the companies involved in the production.
Under the parent company Alphabet, Waymo is the self-driving team of Google which will collaborate with the ride-hailing app, Lyft. This news was confirmed by both the companies in a report published in the New York Times on Sunday. According to this report, the main agenda of this partnership is to carry out pilot projects for autonomous vehicles and product development efforts. A spokesperson of Lyft stated that as Waymo provides the best self-driving technology currently, the Lyft Waymo collaboration will help in accelerating their visions to provide the most efficient transportation facility. The companies will work together to bring autonomous vehicle technology to mainstream transportation. Through this partnership, Waymo’s self-driving technology will get a medium. With the help of this medium, the technology will reach out to more cities and people.
How will the Lyft Waymo collaboration affect competition
Waymo has been in the news for a while now due to the Uber controversy. Around a few weeks ago, Waymo had sued the ride-hailing giant on the accusation that the ride-hailing giant stole proprietary self-driving technology with the help of an executive in charge of this program. The legal formalities of this accusation are under process, but it seems that this collaboration will shake up the business of Uber. Lyft is Uber’s competitor and it will soon introduce self-driving cars as well. Also, due to the lawsuit filed, Uber’s technology development is facing certain hindrances. Along with this, the company will also incur financial losses if the case turns out to be in Waymo's favor. With Uber out of the picture as competition, Waymo and Lyft can dominate the market to quite an extent.
The Lyft Waymo collaboration might have taken place as a result of a mutual rivalry between the two companies. Lyft took a smart move of teaming up with a company that has already developed such technology. This means that Lyft need not work on self-driving cars from scratch instead simply inculcate Waymo’s technology in its vehicles. Both the companies have refused to declare the financial details of the deal. But it is quite evident that this deal might enable them to rule the self-driving car sector.