Uber has confirmed that it will spin off its motoring after the unit closed $ 1 billion in funding from Toyota, auto-party maker Denso and SoftBank's Vision Fund.
The development has been speculated for some time – as far back as October – and it serves both to clear a deeply unprofitable entity from the main business of Uber: to help Uber reduce some of its losses while Uber & # 39 ; s Advanced Technologies Group (known as Uber ATG) gives more freedom to focus on the tough challenge of bringing autonomous cars to the market.
The agreement values Uber ATG at $ 725 billion, the companies announced. As for the exact mechanics of the investment, Toyota and Denso are giving $ 667 million with the Vision found, throwing in the remaining $ 333 million.
The agreement is expected to close in the third quarter, and it gives investors a new task on Ubers overhanging IPO, which is delivered with Uber ATG. The company made a $ 1
Nevertheless, these crazy numbers have not subdued the mood. Uber is still seen as a once-in-a-lifetime company, which is tipped to raise about $ 10 billion from IPO, giving it a reported $ 90 billion worth of $ 100 billion.
Like the extraction itself, the Investor's identity is not a surprise.
The Vision Fund (and its parents' SoftBank) have supported Uber since the January 2018 investment agreement was closed, while Toyota took $ 500 million in the shipping company in August last year. Toyota and Uber are working to bring autonomous Sienna cars to Uber's service by 2021, while in further evidence of the partnership, SoftBank and Toyota jointly develop services in their native Japan that will be powered by self-propelled vehicles.
The Duo also supported Grab – The Southeast Asian riding-hailing company that Uber owns about 23 percent of – perhaps more aggressively. SoftBank has been an investor since 2014 and last year, Toyota invested $ 1 billion in Grab, as it said was the highest investment it has made in riding hailing.
"Utilizing the Power of Uber ATG's Autonomous Vehicle Technology and Service Networks and Toyota Group 's Vehicle Control System Technology, Mass Production Capacity and Advanced Security Support Systems, such as the Toyota Guardian, will enable us to commercialize safer, cheaper ridesharing vehicles and services, says Shigeki Tomoyama, CEO managing Toyota's associated company division, said in a statement.
Here's Uber's CEO Dara Khosrowshahi shorter on Twitter