Lyft to offer driverless ride-hails ‘as soon as this summer'
Lyft said it plans to offer driverless vehicles on its platform "as soon as this summer,' and that it sees human drivers transitioning to other work such as fleet management as autonomous rides become more ubiquitous.
The company has been spending more time pitching its vision for the future of its gig-economy business model as it plays catch-up in offering autonomous rides. Driverless ride-hailing has become more commonplace in some key U.S. markets through competing platforms. Like rival Uber Technologies, Lyft envisions a hybrid future where human drivers will complement autonomous vehicle fleets, especially during periods of peak demand.
The autonomous-vehicle economy will create new jobs such as remote vehicle support, fleet management, and map data labeling and validation, said Jeremy Bird, Lyft's executive vice president in charge of driver experience, said Thursday in a blog post. He also confirmed the driverless service could begin as early as this summer. The company had previously committed to a launch sometime in 2025.
Bird also said the idea of drivers eventually owning autonomous vehicles is core to the company's strategy, and this will become more feasible as the cost falls for those cars. That would enable drivers to operate small fleets, not unlike how some Airbnb hosts have made a business out of renting out multiple properties. Elon Musk has a similar vision in which Tesla owners would monetize their vehicles when they aren't personally using them.
"Even when technology encroaches on human jobs, it doesn't eliminate the need for humans altogether — especially when workers can provide value that the machines cannot,' Bird wrote. "Humans are features, not bugs, and we'll continue to find a way to reward those that provide great service as part of a thriving hybrid network.'
Lyft and Uber currently rely on millions of drivers to quickly match with riders. But Lyft, which only operates in the U.S. and Canada, is more exposed to increasing competition from domestic autonomous ride providers such as Alphabet's Waymo.
Waymo began offering driverless service more broadly in major markets like San Francisco and Los Angeles last year, and has partnered exclusively with Uber to offer those rides in Austin starting this month. The two companies have a similar agreement to launch driverless trips in Atlanta this summer.
When Lyft launches its first driverless trips, it will be through existing partnerships, including with Toyota-backed startup May Mobility in Atlanta.
Lyft shares have declined 9% since the start of the year, while Uber's have gained 23% so far.
Uber CEO Dara Khosrowshahi has gone so far as to predict that human drivers will eventually be displaced as autonomous software develops superior driving skills over the next 15 to 20 years. The company has made some early efforts to help create new earnings opportunities for its network of gig workers, including piloting a Taskrabbit-like service where customers can hire people to complete various household tasks. It's also recruiting coders and language experts to fuel its new AI data labeling business.
In his blog post, Lyft's Bird stopped short of predicting when drivers might be displaced, instead saying that driverless cars will create new opportunities for drivers. That includes manual work required to service, maintain and charge the vehicles. These are "jobs for which drivers are well suited,' Bird added.
The industry will also need customer service workers to respond to unusual events during driverless rides. In Lyft's case, 30% of the staff working in its fleet management unit Flexdrive are former or current Lyft drivers, Bird wrote.
The company has also proposed ways for drivers to find jobs in other industries, offering free training to enter the tech industry. CEO David Risher also recently announced a new feature that uses AI to generate a recommendation letter, which active drivers in good standing can share with potential employers.
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