Uber is selling its autonomous driving unit to self-driving startup Aurora, the companies announced Monday.
The value of the Uber unit is $4 billion, according to sources that spoke to Reuters, down from about $7.25 billion a year ago.
Uber will also invest $400 million in Aurora, which is valued at $10 billion, and Uber will hold about 26% ownership interest in Aurora, according to an SEC filing. The companies together will collaborate on the launch of self-driving vehicles on the Uber ride sharing network. Uber CEO Dara Khosrowshahi is joining the Aurora board of directors as well.
The Advanced Technologies Group at Uber earned $42 million in revenue in 2019, but the company has faced a pandemic-related downturn in its core ride hailing business.
“Few technologies hold as much promise to improve people’s lives with safe, accessible and environmentally friendly transportation as self-driving vehicles,” Khosrowshahi said in a statement. “ATG has been as the forefront of this effort and in joining forces with Aurora they are now in the pole position to deliver on that promise even faster.”
Aurora was founded in 2017 and is building the Aurora Driver platform to combine software, hardware and data services to operate passenger vehicles, light commercial vehicles and heavy-duty trucks. Aurora has backing from Amazon and Sequoia.
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