Uber offloads autonomous car unit

Uber offloads autonomous car unit

To hold 26% stake in start-up Aurora

An Uber car, equipped with cameras and sensors, drives the streets of Washington, D.C. in this file photo. (AFP photo)
An Uber car, equipped with cameras and sensors, drives the streets of Washington, D.C. in this file photo. (AFP photo)

SAN FRANCISCO: Uber Technologies Inc agreed to sell its autonomous car division to Aurora Innovation Inc in a deal that gives the ride-hailing giant a stake in the start-up developing self-driving technology, the companies said on Monday.

As part of the deal, Uber will invest $400 million in Aurora to merge the teams from both firms seeking to advance the technology for autonomous ride-hailing and will hold a 26% stake in the start-up.

"By adding the people and technology of Uber's Advanced Technologies Group to the incredible group we've already assembled at Aurora, we're shifting the landscape of the automated vehicle space," said Chris Urmson, co-founder and chief executive of Aurora, which has been backed by Amazon.com Inc and South Korean carmaker Hyundai Motor Co, among others.

Sale of Uber's autonomous driving unit, which was temporarily stalled several years back after a fatal crash, comes as it streamlines operations to navigate a ride-share market scuttle by the pandemic.

Uber did not appear to be giving up on self-driving cars, which have been part of its vision for a profitable ride-share business, but was instead swapping the unit for a stake in Aurora Innovation.

"With the addition of ATG, Aurora will have an incredibly strong team and technology, a clear path to several markets, and the resources to deliver," Urmson said.

"Simply put, Aurora will be the company best positioned to deliver the self-driving products necessary to make transportation and logistics safer, more accessible, and less expensive."

Along with acquiring ATG, Aurora announced a strategic partnership with Uber to mesh its technology with the leading smartphone-summoned ride service, according to the companies.

The companies expected the self-driving technology to be initially put to use for long-haul trucking.

Uber chief executive Dara Khosrowshahi is joining the Aurora board of directors as part of the deal.

The merged firm will work on the technology to be known as Aurora Driver.

"Few technologies hold as much promise to improve people's lives with safe, accessible, and environmentally friendly transportation as self-driving vehicles," Khosrowshahi said. "I'm looking forward to working with Chris, and to bringing the Aurora Driver to the Uber network in the years ahead."

Uber's autonomous vehicle aspirations took a after a US investigation into the death of a pedestrian struck by a self-driving Uber car in 2018 faulted driver inattention along with "inadequate" safety measures implemented by the company.

It also struggled as a result of litigation by former Google car unit Waymo claiming Uber had misappropriated trade secrets on autonomous technology.

Waymo opened its robo-taxi project to the general public in the US city of Phoenix in October, becoming the first widely available driverless ride service.

Aurora, founded by an engineer for formerly worked on the Google autonomous vehicle team, has backing from Amazon and Fiat Chrysler Automobiles NV.

Japanese car giant Toyota Motor Corp and investment fund SoftBank Vision Fund have made investments Uber's autonomous driving unit.

Do you like the content of this article?

One killed, 6 hurt in Korat crash

NAKHON RATCHASIMA: An elderly woman was killed and six people injured when the pickup truck taking them to a housewarming and a passenger van collided at an intersection in Chok Chai district on Thursday morning.


Asian markets plunge after Wall St battering

Asian markets posted big early losses Thursday, after Wall Street suffered one of its worst batterings in two years in the previous session.


Forbidden love: Taiwan's gay couples seek foreign marriage equality

TAIPEI Taiwan's LGBTQ community celebrated the third year of gay marriage being legal this week, but for Vincent Chuang it was a bittersweet reminder that he still cannot wed because he fell in love with a foreigner.