US-based ride-sharing app developer Uber has secured an undisclosed sum from car manufacturer Toyota as part of a strategic partnership agreement, Bloomberg reported on Tuesday.
As part of the agreement, Toyota will offer leases to Uber drivers who can cover payments with their earnings. The offering comes at a time when regulators in California are exploring the possibility of banning of such leasing practices.
While financial details have not been disclosed, Toyota confirmed it has no interest in eventually acquiring a majority stake in Uber.
The transaction comes as carmaker Volkswagen invests $300m in ride hailing technology producer Gett, and follows automotive manufacturer General Motors’ $500m capital injection into ride sharing company Lyft in January this year.
Technology company Apple invested $1bn earlier this month in Uber’s Chinese competitor, Didi Chuxing, which is in the process of raising a $3bn round that is also expected to include e-commerce group Alibaba and its financial services affiliate Ant Financial.
Founded in 2009, Uber and its subsidiaries have raised more than $10bn in equity funding. The company has grown into the world’s most valuable player in the ride hailing space, though it has so far struggled to tackle the Chinese market.
Uber’s existing backers feature corporates such as insurance providers Ping An and China Life Insurance, internet company Baidu, conglomerate Alphabet, media company Times Group and software producer Microsoft.
A host of other entities have also invested in Uber, such as Citic Bank, Hillhouse Capital, Sequoia Capital, TPG, Fidelity Investments, Benchmark Capital, Wellington Management, Kleiner Perkins Caufield & Byers, Menlo Ventures, Data Collective, CrunchFund, Goldman Sachs, BlackRock, Lowercase Capital, First Round Capital, New Enterprise Associates and Innovation Endeavors.