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