US-based ride hailing service Uber has officially spun off its autonomous driving subsidiary, Advanced Technologies Group (Uber ATG), with an agreed $1bn in funding from three corporate investors.
Automotive manufacturer Toyota and automotive components producer Denso will supply a joint $667m while Vision Fund, the $98.6bn investment fund managed by telecommunications and internet group SoftBank, will supply the other $333m.
Uber ATG is the division of Uber dedicated to developing autonomous vehicle systems and sensors equipped with object perception, motion and prediction planning, mapping and data visualisation technology.
The news was first reported by before the Wall Street Journal before Uber confirmed it on Thursday last week. The transaction, which values Uber ATG at $7.25bn post-money, is expected to close before the end of September 2019.
Toyota announced a $500m investment in Uber in August 2018 in connection with an agreement to work on a pilot on-demand ride scheme using Toyota’s Sienna model, and that represented its contribution to the round, the companies disclosed.
The carmaker has agreed to provide a further $300m for the spinoff over the next three years to support its further development of hardware for driverless cars.
Dara Khosrowshahi, Uber’s chief executive, said: “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 liveable. Today’s announcement, along with our ongoing [original equipment manufacturer] and supplier relationships, will help maintain Uber’s position at the forefront of that transformation.”
