Lyft (LYFT.US) teams up with Waymo to compete with Uber Technologies, Inc. (UBER.US)! Automated driving taxi services will be launched in Nashville in 2026.

Lyft (LYFT.US) will collaborate with Alphabet's (GOOGL.US) Waymo for the first time to launch self-driving taxi services in Nashville next year. This collaboration will help Lyft better compete with its rival Uber Technologies, Inc. (UBER.US). Waymo has been testing in Nashville since March and will launch fully autonomous operations in the Tennessee capital in the coming months. Waymo stated in a blog post on Wednesday that the service will be available to the public next year, initially through the Waymo app and later on the Lyft platform in late 2026. Following this news, as of the time of writing, Lyft's stock surged over 12% in early Wednesday trading, while Uber Technologies, Inc. dropped nearly 2%. According to Lyft's statement, its fleet management subsidiary Flexdrive will provide maintenance, infrastructure, and garage operations support for Waymo's vehicles in Nashville. Flexdrive currently offers car rental services to ride-hail drivers in 24 cities across the United States, including Nashville. As part of the partnership, Lyft will also build a fleet management facility in the local area with charging and vehicle servicing capabilities. Waymo declined to disclose the pricing for the self-driving taxi service in Nashville and did not specify if prices would differ on the Waymo and Lyft apps. Nicole Gavel, Waymo's head of business development and strategic partnerships, stated that more details will be announced next year. Lyft has been striving to catch up with its larger competitor, Uber Technologies, Inc., by offering autonomous vehicle services to its ride-hail customers. While this marks Lyft's first collaboration with Waymo, Waymo has been a partner of Uber Technologies, Inc. for years. The two companies reached a multi-year agreement in 2023, and Uber Technologies, Inc. currently offers Waymo ride services in Phoenix, Austin, and Atlanta. Lyft also signed similar agreements last November and launched its first commercial pilot project with May Mobility in Atlanta last week. Lyft expects to provide autonomous ride services in more U.S. markets with other partners (including Mobileye Global Inc. supported by Intel Corporation and Austria's Benteler Group) as early as next year. Lyft also reached an agreement with China's Baidu Inc Sponsored ADR Class A (BIDU.US) to offer autonomous ride services in Europe. The collaboration with Waymo highlights the role Lyft can play in the industry amid the growing popularity of autonomous vehicles. Jeremy Bird, Lyft's executive vice president responsible for driver experience, stated that with the Flexdrive department, Lyft can provide operational expertise in areas such as vehicle dispatching, maintenance time, and ensuring assets are utilized as efficiently as possible. Currently, Waymo provides hundreds of thousands of fully autonomous rides per week in five major U.S. cities, adopting different strategies in various markets. In some cities, Waymo offers rides and operates its own garages through its own app, while in other cities, it collaborates with third-party fleet operators and ride-hail apps like Uber Technologies, Inc. and Lyft. Nicole Gavel stated, "We are exploring multiple ways to enter the market to truly expand our efforts to reach more people and cover more areas with Waymo." She added that Waymo is willing to expand into more markets with Lyft in the future, stating, "We are excited to start in Nashville. In the future, we hope to expand further."