Uber sells its self-driving vehicle business to Aurora

By: Miguel A. Rodriguez

17:03, 08 December 2020

The Silicon Valley-based startup Aurora secures its spot in the self-driving car business

Deal after deal this week. If earlier, we discussed Palantir’s contract with the FDA and Drake’s fashion line with Nike, it is now Uber’s turn.

The ride-sharing company is selling its self-driving car division to #Aurora – an autonomous vehicle startup. Through this transaction, Uber puts an end to its five-year run of developing such vehicles.

Following the deal, Uber will invest $400 million in the #startup and take a 26% stake in Aurora. At the same time, Aurora will be able to deploy self-driving cars on the Uber app. Moreover, part of Uber’s employees will transition to Aurora, while the latter announced its commitment to do its best to keep the majority of the former’s employees.

According to an Aurora spokesperson, the #deal is expected to close in the first three months of #2021. Uber believes that through this deal, it will manage to both reduce costs, and be profitable in the year to come.

At the moment of writing, Uber stock price lost almost 2% in pre-market trading.

Read here and here about the latest deals!

Sources: edition.cnn.com, finance.yahoo.com

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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.