Argo and Ford to Launch Self-Driving Vehicles on Lyft

Argo AI and Ford to Deploy 1,000 Self-Driving Vehicles on Lyft Network

Argo AI, a startup specializing in autonomous vehicle technology, alongside its investor and customer, Ford, are planning a substantial rollout of self-driving vehicles. Over the next five years, at least 1,000 autonomous vehicles will be integrated into Lyft’s ride-hailing service across multiple cities, beginning with Miami and Austin.

Initial Deployment and Expansion Plans

The first Ford self-driving vehicles, powered by Argo’s autonomous technology, are scheduled to be accessible via the Lyft app in Miami later this year. Both Ford and Argo have maintained an operational presence in Miami for several years, actively testing their fleet of vehicles in the region.

Following Miami, Austin is slated to receive the service in the coming year. Additional U.S. cities will be progressively added to the Lyft app starting in 2023, as outlined by Jody Kelman, head of Lyft’s Autonomous division – the company’s self-driving deployment unit. Currently, Argo is conducting tests in Detroit, Palo Alto, Pittsburgh, and Washington, D.C.

Scale of Deployment and Data Exchange

“This represents the largest deployment we are undertaking, and I believe the most significant of its kind currently,” stated Kelman. “Deploying 1,000 vehicles across six markets signifies a major advancement in the commercialization of scaled autonomous driving.”

This collaboration extends beyond simply adding vehicles to the Lyft network. In exchange for a 2.5% stake in Argo AI, Lyft will grant access to comprehensive driving data collected from its entire network, as announced on Wednesday. This partnership has elevated Argo’s valuation to $12.4 billion, as confirmed by sources to TechCrunch (originally reported by Bloomberg).

Leveraging Data for Optimization

Lyft already gathers driving data, including telemetry information related to events like hard braking and collisions. Argo is particularly interested in two key data areas: safety-related information concerning human drivers utilizing the app, and a broader understanding of trip patterns throughout cities, according to Argo CEO Bryan Salesky.

“This access will greatly assist us in refining our understanding of demand and identifying peak usage times,” Salesky explained to TechCrunch. “This knowledge will guide our mapping efforts, operational focus, and resource allocation, ensuring efficient testing.”

For example, the Lyft data is expected to help Argo identify areas with robust public transportation systems and those with limited or nonexistent options.

“Our aim is to gain a comprehensive view of demand using their data,” Salesky added. “This will enable us to strategically deploy our vehicles where they can provide the greatest benefit.”

Operational Details and Safety Measures

The Ford vehicles will be operated by Argo and will include a trained human safety driver. However, Salesky clarified that the vehicles will navigate autonomously from the passenger pickup location to their final destination.

Argo AI’s Development and Investment

This agreement underscores the progress Argo has made in its autonomous vehicle development, particularly in its collaboration with Ford. In February 2017, Ford invested $1 billion in Argo AI, which was less than six months old at the time. Since then, Argo has concentrated on developing the complete virtual driver system – encompassing sensors, software, and computing platforms – as well as creating high-definition maps specifically for Ford’s self-driving vehicles.

In July 2019, the VW Group invested $2.6 billion in Argo. This deal, finalized last summer, established equal ownership stakes for Ford and VW, projected to reach approximately 40% each over time. The remaining equity is held by Argo’s founders and employees. Argo’s board consists of two representatives from VW, two from Ford, and three from Argo.

Lyft’s Strategic Positioning

Lyft also stands to benefit significantly from this arrangement – beyond the minor equity stake. Lyft’s primary objective is to become the leading ride-hailing network and fleet management platform for all commercial robotaxi services. Lyft already has established partnerships with other autonomous vehicle developers, including the $4 billion Hyundai-Aptiv joint venture, Motional, and Waymo.

Motional vehicles are currently operating on the Lyft ride-hailing network in Las Vegas, each equipped with a human safety operator. The companies have an agreement to deploy fully autonomous vehicles on the Lyft network in 2023.

Lyft initially pursued internal development of autonomous vehicle technology through a division called Level 5, but ultimately sold it to Toyota’s Woven Planet Holdings subsidiary for $550 million in April.

As part of the acquisition, Woven Planet entered into commercial agreements to utilize the Lyft platform and fleet data.