Lyft sells self-driving unit to Toyota

There’s been major developments in the ride-sharing industry, with Lyft announcing plans to sell its self driving car unit to a division of Toyota.

Shares in Lyft rose more than 2% after hours, as the company announced the $550 million deal.

Lyft and Woven Planet will work together on enhancing automated driving technology safety, according to a release.

The company expects the deal will remove $100 million of operating expenses each year.

Lyft will receive $200 million cash upfront, with the remaining $350 million to be paid over five years,