US-based self-driving technology developer Aurora agreed yesterday to acquire US-headquartered ride hailing service Uber’s Advanced Technologies Group (ATG) subsidiary through a deal involving Uber investing $400m in the company.
Chris Urmson, chief executive of Aurora, told CBS the combined company will be valued at $10bn, and that Uber will own a 26% stake. Uber CEO Dara Khosrowshahi is joining its board of directors in connection with the round.
Uber ATG is developing autonomous vehicle and sensor technology which will inform applications Aurora is working on for use in automated heavy-duty trucks that will deliver freight.
The company was spun off by Uber in April 2019 with about $333m each from telecommunications and internet group SoftBank’s Vision Fund, carmaker Toyota and automotive component producer Denso at a $7.25bn valuation.
Aurora has also formed a strategic partnership that will involve it connecting its technology to the Uber app with a view to deploying it to passenger vehicles.
Dara Khosrowshahi said in a press release announcing the deal: “Few technologies hold as much promise to improve people’s lives with safe, accessible, and environmentally friendly transportation as self-driving vehicles.
“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. I am looking forward to working with Chris, and to bringing the Aurora Driver to the Uber network in the years ahead.”
Aurora has raised a total of $690m from investors including carmaker Hyundai and its Kia Motors subsidiary, e-commerce and cloud services group Amazon and Shell Ventures, the strategic investment arm of oil and gas producer Shell, as of a $600m series B round in June 2019.
Canada Pension Plan Investment Board, Baillie Gifford, Sequoia Capital, Lightspeed Venture Partners, Geodesic Partners, Reinvent Capital, Greylock Partners, T. Rowe Price and Index Ventures are also among the company’s investors.
