According to sources, Uber Technologies Ltd. is planning to sell its autonomous driving unit, Uber Advanced Technologies Group (ATG), to Aurora, a self-driving car startup. The talks are still happening and there is no certainty about a deal bein reached, the source emphasised, adding that Uber might also consider taking a stake in the new company if Aurora decides to take over ATG.
Uber’s ATG, which develops autonomous driving technology has added Toyota Motor Corp 7203.T and SoftBank Group Corp 9984.T among its investors. The unit had raised $1 billion, around 758 million pounds from a consortium of investors including SoftBank, that raised its value to $7.25 billion earlier last year.
Uber has been seeking options for its autonomous vehicle divisions, a heavy cash burn machine, prioritising outside investment, as Uber’s Chief Executive Officer, Dara Khosrowshahi, has been refocusing on core businesses including ride-hailing and food delivery since COVID-19 hit economy.
Uber and Aurora currently declined to comment on the deal. Aurora is one of the dozens of startups, automakers and large technology companies that work on self-driving car systems and are eager to capitalize on a sea change in the transportation industry.
The startup which has already started testing its vehicles in the San Francisco Bay Area and Pittsburgh, in July, announced that it was expanding testing and development of its vehicles to Dallas-Fort Worth Area in Texas.