Computing company Apple is poised to buy US-based autonomous driving software developer Drive.ai in a deal that would enable on-demand ride provider Grab to exit, the Information has reported, citing unnamed sources.
Drive.ai was previously reported to be sounding out buyers in March 2019, targeting suitors with larger autonomous driving projects that would benefit from its resources, and hiring an unnamed investment bank to advise any forthcoming transaction.
Founded in 2015, Drive.ai has been pilot testing a ride hailing service with driverless vehicles which navigate roads using its deep-learning-driven autonomous vehicle software.
The plan is to exploit Drive.ai’s software to build autonomous cars to the transport specifications of its industry partners and community organisations.
Drive.ai began the pilot in October 2018, but the Information has speculated a buyer is needed to commercially launch the technology, and some of its co-founders have reportedly parted ways.
Another Drive.ai pilot was announced in partnership with ride hailing service Lyft in 2017, but there has been little news of its progress.
Apple reportedly hopes to buy Drive.ai to support its autonomous driving program and take on a select number of its engineers, indicating the corporate remains interested in the space, despite suggestions in January 2019 that it would move to dismiss 200 of its autonomous driving employees.
Grab backed Drive.ai in an October 2017 round that featured undisclosed investors, after a $50m series B round closed three months earlier led by VC firm New Enterprise Associates with commitments from GGV Capital and Northern Light Capital.
Northern Light had previously led a $12m series A round in 2016 backed by VC fund Oriza Ventures. Drive.ai’s other investors include investment firm Maniv Mobility and venture capital firms InnoSpring and HOF Capital.