Ford Motor Co. and autonomous vehicle startup Argo AI LLC plan to make 1,000 self-driving taxis available to consumers via Lyft Inc.’s ride-hailing app.

The companies detailed the project today. The first self-driving taxis will roll out later this year in Miami with safety drivers aboard. The next stop is Austin, Texas, where Ford and Argo AI plan to bring their vehicles taxis next year, and the companies will expand to yet more cities down the road. The plan is to have all 1,000 of the planned taxis operational by 2025.

Argo AI, which is supplying the autonomous driving technology for the project, operates as a kind of semi-independent joint venture between Ford and Volkswagen AG. The Pittsburgh-based startup sold a majority stake to Ford in 2017 for $1 billion, then raised $2.6 billion from Volkswagen two years later. The two automakers now maintain a combined 80% stake in Argo AI along with four of the seven seats on the startup’s board, while the rest of the startup is owned by employees.

Argo AI develops not only autonomous driving software but also hardware. Earlier this year, the startup debuted a lidar sensor that can be installed on autonomous vehicles to help them collect data on the environment. Argo AI said at the time that the sensor is capable of spotting objects such as other cars from more than 1,300 feet away, which the startup claims makes it the longest-range unit system on the market.

As part of the deal with Lyft, the startup will install its autonomous driving technology on 1,000 Ford vehicles to turn them into self-driving taxis. Lyft, in turn, will not only provide access to its ride-hailing app but also give Argo AI and Ford “anonymized service and fleet data” to help them improve their technology.

The ride-hailing provider is furthermore set to receive a 2.5% equity stake in Argo AI. The startup was valued at $7.5 billion after Volkswagen’s $2.6 billion investment, meaning Lyft’s stake is worth about $185 million.

“This collaboration is special because we’re executing on a shared vision for improving the safety, access to and affordability of transportation in our cities,” Argo AI founder and Chief Executive Officer Bryan Salesky said in a statement. “Beyond the link that Lyft provides to the customer, we’ll be able to work together to define where an autonomous service will benefit communities the most and ensure we’re deploying the technology safely.”

“Argo and Ford are currently piloting, mapping and preparing for commercial operations of autonomous vehicles in more cities than any other AV collaboration, and this new agreement is a crucial step toward full commercial operations,” added Scott Griffith, CEO of Ford’s Autonomous Vehicles & Mobility Businesses.

Lyft is partnering with Argo AI and Ford just months after selling its in-house autonomous vehicle development unit to Toyota Motor Co. for $550 million. The partnership will enable Lyft to continue maintaining a presence in the autonomous vehicle market, but without the expense of developing the necessary technology internally. It’s possible that the ride-hailing provider may team up with additional autonomous driving companies in the future to speed up the number of cities where it can offer self-driving taxis to users. 

Photo: Argo AI