Toyota, DENSO Corporation and the SoftBank Vision Fund (SVF) are investing $1 billion in Uber Technologies Inc.’s Advanced Technologies Group (Uber ATG). The consortium told Connected Car that the investment, in a newly formed ATG corporate entity, aims to accelerate the development and commercialization of automated ridesharing services.
Under the terms, Toyota and DENSO will together invest $667 million and SVF will invest $333 million, valuing the new Uber ATG entity at $7.25 billion on a post-money basis.
Toyota invested $500 million in Uber in August 2018, when the two companies announced their intention to bring pilot-scale deployments of automated Toyota Sienna-based ridesharing vehicles to the Uber ridesharing network in 2021, based on Uber ATG’s self-driving technology alongside the Toyota Guardian advanced safety support system.
This further investment will apparently prepare the companies and industry for mass production and commercialization of automated ridesharing vehicles and services. Toyota will also contribute up to an additional $300 million over the next three years to help cover the costs related to these activities.
Dara Khosrowshahi, CEO of Uber, 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 livable. Today’s announcement, along with our ongoing OEM and supplier relationships, will help maintain Uber’s position at the forefront of that transformation.”
Shigeki Tomoyama, Toyota executive vice president and president of Toyota’s in-house Connected Company added, “Toyota is dedicated to realizing a safe and secure future mobility society. Leveraging the strengths of Uber ATG’s autonomous vehicle technology and service network and the Toyota Group’s vehicle control system technology, mass-production capability and advanced safety support systems. We believe that the combined work of Toyota, DENSO, and Uber ATG on developing next-generation autonomous vehicle hardware will accelerate the timeline for and early success of automated ridesharing services.”
The transaction is expected to close in Q3 of calendar year 2019.