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Summary
- Uber is selling its self-driving car division Uber Advanced Technologies Group to US-based firm Aurora Innovation Inc
- The company will also invest $400 million in the new deal, and CEO Dara Khosrowshahi will join Aurora’s board of directors
- Uber will hold a nearly 26 per cent stake in Aurora after completion of the deal
In a move to recoup the losses caused due to the pandemic, Uber Technologies Inc is selling its self-driving car division Uber Advanced Technologies Group (ATG), to US-based autonomous driving startup Aurora Innovation Inc.
As part of the deal, Uber will invest $400 million and its chief executive officer Dara Khosrowshahi will be on the board of directors at Aurora. The ride-hailing giant will hold a nearly 26 per cent stake in Aurora after completion of the deal.
On the other hand, Aurora will not pay any cash for the deal. Uber ATG’s shareholders will become minority shareholders in Aurora. Once the deal is finalised, ATG employees will work for Aurora.
Founded in 2017, Aurora was valued at $7.25 billion after it got a $1 billion investment from Toyota, DENSO and SoftBank’s Vision Fund in 2019. The acquisition will enable Aurora to utilise Uber’s team and technology which will help the firm to deliver the first-class product more quickly, safely and broadly.
Chris Urmson, co-founder and chief executive officer of Aurora said with the acquisition his company would now have a strong team. The deal will help to expand the firm’s reach to several markets and will provide a platform to deliver self-driving products that will make transportation and logistics safer and affordable.
Urmson added that ATG would improve and enhance the first Aurora Driver applications for heavy duty lorries and also help the company to maintain and speed up the work on light vehicle products.
Besides acquiring ATG, Aurora is also forming a strategic alliance with Uber to boost the company’s position in delivering the Aurora Driver broadly.
Also read: Uber Reports Dismal Results; Mobility Losses Offset By Delivery Business Gains
Uber CEO Dara Khosrowshahi said the company is happy about the deal and is looking ahead to bring Aurora Driver to the Uber network in the future. “Only a handful of technologies are able to fulfil the promise of improving people’s lives with a safe, simple, and ecologically friendly transport as self-driving vehicles,” he said.
Khosrowshahi added that for the last five years, the ATG team has been working to deliver the best products, and with this acquisition, the company is in a better position to fulfil the promises.
