Self-driving technologies are a hot topic right now, as we see Tesla owners using the Full Self-Driving beta more regularly than ever. However, other companies still have yet to solidify plans for autonomous driving systems, or may just be purchasing their foot in the door to the market.
On Monday, Uber announced that it has sold its self-driving unit, Advanced Technologies Group (ATG), to competitors at Aurora Innovation, as reported by CNBC. The deal will close in Q1 of 2021, valuing the ATG technology at $4 billion (USD), despite the fact that the unit was appraised at $7.25 billion in 2019 by stakeholders Softbank, Denso, and Toyota.
We’re excited to announce the most transformative deal in the AV industry: we’re acquiring Uber ATG. Together, we’ll accelerate our mission to deliver the benefits of self-driving technology safely, quickly, and broadly. Welcome to the Aurora family, ATG. https://t.co/XTgc1v4PRJ pic.twitter.com/VSBQWkaqmy
— Aurora (@aurora_inno) December 7, 2020
Uber CEO Dara Khosrowshahi will be on the company’s board of directors, with Uber also investing $400 million into the startup. Currently, Aurora has received a $10 billion valuation.
Khosrowshahi said, “Few technologies hold as much promise to improve people’s lives with safe, accessible, and environmentally friendly transportation as self-driving vehicles.” She continued, “For the last five years, our phenomenal team at ATG has been at the forefront of this effort—and in joining forces with Aurora, they are now in pole position to deliver on that promise even faster.”
Among others, Aurora is also backed by Hyundai, Amazon, and major venture firms Greylock and Sequoia. The sale and investment into Aurora may well be a good business move for Uber, given the standstill on ride-sharing due to the current COVID-19 pandemic.
