Toyota will invest $500 million into Uber
Toyota Motor Corp. will invest $500 million in Uber Technologies Inc. to jointly work on developing self-driving cars, the companies said on Monday, a bid by both to catch up to rivals in the hotly competitive autonomous driving business.
Toyota, one of the world’s largest manufacturers, and Uber , the leading ride-hailing service, are widely seen as lagging the competition in developing self-driving cars.
Their deal deepens an existing relationship and reflects CEO Dara Khosrowshahi’s strategy of Uber developing autonomous vehicles through partnerships, rather than on its own.
The deal also breathes new life into Uber’s self-driving business. Since a self-driving Uber SUV killed a pedestrian in Tempe, Arizona, in March, Uber has removed its robot cars from the road, laid off hundreds of test drivers and shuttered operations in Arizona, its autonomous testing hub.
The investment values Uber at $72 billion, matching the valuation Uber received in a deal with Alphabet Inc. self-driving unit Waymo this year.
Uber will combine its autonomous driving system with Toyota’s Guardian technology, which offers automated safety features such as lane-keeping but does not enable a vehicle to drive completely autonomously.
The combined technology will be built into Toyota’s Sienna minivans, to be deployed on Uber’s ride-hailing network starting in 2021, Uber said.
The companies’ aim is to solve the enormously challenging problem of how to mass produce self-driving cars for shared fleets, including ride-hailing services.
For the Japanese automaker, the “agreement and investment marks an important milestone in our transformation to a mobility company as we help provide a path for safe and secure expansion of mobility services like ride-sharing that includes Toyota vehicles and technologies,” its executive vice president Shigeki Tomoyama said in a statement.
A Toyota official said the company would continue its research into self-driving technology, and that it would not combine its research efforts with Uber.
Uber has admitted its technology lags Waymo, and the crash in Arizona was a further setback in development and testing. The Toyota partnership puts pressure on Uber to resume testing on public roads, but the company has run up against regulators and politicians with safety concerns. Miller said Uber plans to have autonomous cars back on public streets by the end of the year.
Khosrowshahi, who took over Uber a year ago, has recently explored options that include more partnerships as well as a potential sale of the self-driving business, separate sources have told Reuters.