Uber sells ATG self-driving business to Aurora for $ 4 billion worth of transactions

Uber Technologies Inc. announced that it will accelerate the ride-sharing company’s goal of achieving profitability by selling its self-driving unit, Uber Advanced Technologies Group (ATG), to self-driving car startup Aurora.

Equity trading valued ATG at $ 4 billion, according to sources familiar with the matter. Last year, ATG’s valuation fell sharply as it raised $ 1 billion from investor consortia such as Toyota and SoftBank Group and received a valuation of $ 7.25 billion.

Following the sale announced on Monday, Uber has also invested $ 400 million in Aurora, and the acquisition is worth $ 10 billion, sources added. Uber holds about 26% ownership of Aurora on a fully diluted basis, the company said in a filing.

Working on the development of self-driving trucks, vehicles and delivery vehicles, Aurora will work with Uber to launch self-driving cars on its dispatch and food delivery network. Uber is also working on building a freight logistics platform, but currently does not operate its own truck.

The sale accelerates Uber’s goal of achieving adjusted profitability by the end of 2021, and CEO Dara Khosrowshahi told Reuters in an interview. “This essentially advances the path to profitability,” he said.

Kosloshahi, who attends Aurora’s board of directors, said Uber’s profitability is not a major factor in the deal.

However, since the pandemic broke out, Kosloshahi has refocused on core businesses such as ride hailing and food delivery, and Uber has sought options for its self-driving car division, Cashburn Machines.

Aurora is one of dozens of start-ups, automakers and large technology companies working on self-driving car systems and is eager to take advantage of the changing oceans in the transportation industry. According to PitchBook data, the final value in September 2019 was over $ 3 billion.

A Palo Alto-based start-up company has already tested vehicles in the San Francisco Bay Area and Pittsburgh, and said it was expanding vehicle testing and development to the Dallas-Fort Worth area in Texas in July.

The Uber-Aurora partnership is not exclusive. Kosloshahi said Uber will continue to introduce self-driving technology to a variety of vehicles, but said his relationship with Aurora is “special.”

“If technology becomes a reality, I think our investment will be money and then some,” he said.

Uber sells ATG self-driving business to Aurora for $ 4 billion worth of transactions

Source link Uber sells ATG self-driving business to Aurora for $ 4 billion worth of transactions

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