Uber gets $1 billion investment for self-driving unit
Uber announced Thursday night that its self-driving car unit received a $1 billion investment ahead of the tech giant’s upcoming debut on the stock market.
The ride-sharing company said in a statement that Japanese tech group Softbank’s Vision Fund and car maker Toyota together injected the cash, boosting the value of Uber’s Advanced Technologies Group to $7.25 billion.
“This investment and our strong partnership with the Toyota Group are a testament to the incredible work of our ATG team to date, and the exciting future ahead for this important project, alongside great partners. The development of automated driving technology will transform transportation as we know it, making our streets safer and our cities more livable,” Uber CEO Dara Khosrowshahi said.
“Today’s announcement … will help maintain Uber’s position at the forefront of that transformation.”
The investment is expected to be finalized by the end of the third quarter of calendar year 2019.
Toyota is already an investor in Uber, infusing $500 million into the tech company last year. Softbank’s Vision Fund also already owns a 16.3 percent stake in the ride-sharing platform.
The latest investment comes after Uber last week officially filed for an initial public offering. It did not say at what price it initially plans to list its shares noted that its revenue reached $11.3 billion, with 91 million users on its platforms and 1.5 billion trips taken by the end of 2018.
It is expected to have a large public debut despite a $1.8 billion loss last year.
The company’s self-driving division was the source of controversy last year after a self-driven Uber SUV struck and killed a pedestrian in Tempe, Ariz., in March. Uber will not face criminal charges over the incident.