Uber’s self driving car unit could get funding from SoftBank, Toyota

Uber may get funding from SoftBank, Toyota for self driving car unit

Uber’s self driving car unit may soon see some money in its coffers. A group of investors led by SoftBank and Toyota Motor Corp is amid talks to invest $1 billion and more in the self driving vehicle unit of Uber.

The new investment would value the unit at $5 billion to $10 billion, according to a Reuters report. The deal may be signed next month before the much-awaited IPO. Uber filed for an IPO with the Securities and Exchange’s Commission [SEC] last December with plans of going public in 2019.

The investment would be a relief to Uber as the ride hailing firm has lost close to $3.3 billion. The self driving car unit has turned out to be a heavy expenditure without any significant profits. The expenditure was calculated to be $20 million per month. Additionally, this investment could also boost Uber’s value as the company plans to go public.

Toyota invested $500 million in the ride hailing company last year for its self-driving car arm. The company is building elf driving cars to eliminate paying drivers.

The firm’s self driving car caused panic among people when it hit a pedestrian in Arizona during a trial run. The experimental vehicle running on autonomous mode hit and killed a pedestrian, a first of its kind accident.

Looking at Uber rivals, Waymo, owned by Alphabet, is also looking for outside investments. This would be the first outside fund that the company receives for its self driving car business. However, Alphabet is not keen on sharing too much of the equity.

Image via Shutterstock

Uber may get funding from SoftBank, Toyota for self driving car unit
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

To Top