Uber Technologies Inc is selling its autonomous driving unit, Uber Advanced Technologies Group , to self-driving car startup Aurora, the companies said on Monday, in a move that would accelerate the ride-sharing company's goal to achieve profitability. The equity deal valued the ATG at US$4 billion, according to people familiar with the matter.
FILE PHOTO: Uber's logo is pictured at its office in Bogota, Colombia, December 12, 2019. REUTERS/Luisa GonzalezREUTERS: Uber Technologies Inc is selling its autonomous driving unit, Uber Advanced Technologies Group , to self-driving car startup Aurora, the companies said on Monday, in a move that would accelerate the ride-sharing company's goal to achieve profitability. The equity deal valued the ATG at US$4 billion, according to people familiar with the matter.
The valuation of ATG has taken a dive from last year, when it raised US$1 billion from a consortium of investors including Toyota Motor Corp and SoftBank Group Corp at a valuation of US$7.25 billion.Uber is also investing US$400 million in Aurora, in a deal that valued Aurora at US$10 billion, the people added. Uber will hold about 26per cent ownership interest in Aurora on a fully diluted basis, the company said in a filing.
The sale will accelerate Uber's goal to achieve profitability on an adjusted basis by the end of 2021, Chief Executive Officer Dara Khosrowshahi said in an interview with Reuters.