Alphabet and Google's autonomous driving company, Waymo, recently announced they will be teaming up with the ride-sharing giant Lyft. The CEO for Waymo, John Krafcik recently stated that his company will put ten of Waymo's self-driving cars into Lyft's service around the Phoenix area.
Waymo launched its commercial ride-sharing service in Phoenix just six months ago, and already has roughly 1,000 riders using the service daily to take self-driving trips to work, school, grocery stores, and elsewhere. While the cars drive themselves, Waymo still has a safety driver in each car in case a human needs to take over the vehicle.
Krafcik said in the post that "Once Waymo vehicles are on the platform, Lyft users in the area will have the option to select a Waymo directly from the Lyft app for eligible rides."
The new partnership is a significant move for both Waymo and Lyft as the autonomous ridesharing market begins to take shape, and each stands to benefit from the new relationship.
While the ridesharing market is gaining traction worldwide, the profitability of the model is still in question. The fees Lyft pays to its drivers and the company's technology, marketing, and other expenses outpace the revenue intake for the company right now. That's why Lyft and its rival Uber are looking to autonomous vehicles as a way to lower costs in the future.
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