Uber's Self-Driving Unit Is For Sale: TechCrunch
Uber Technologies Inc (NYSE: UBER) is looking to sell its self-driving unit, TechCrunch has reported.
What Happened: Uber’s Advanced Technologies Group has been negotiating the sale with Aurora Innovation, a self-driving technology startup. According to three people involved in the deal, the discussions started in October, and they are “far along.”
The ATG unit is currently valued at $7.25 billion, with investors like SoftBank Group (OTC: SFTBF)’s Vision Fund and Toyota (NYSE: TM).
Aurora Innovation provides software, data services and hardware, according to the company’s website. It is led by executives who previously worked at Tesla Inc (NASDAQ: TSLA), Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) and Uber.
Why It Matters: Uber has had a turbulent year, with the Q3 earnings report showing an 18% revenue loss.
Earlier this year, it lost a deal with Chicago-based GrubHub Inc (NYSE: GRUB) that would have potentially brought its food delivery business to an international scale. Grubhub partnered instead with a European company, Just Eat Takeaway, in a $7.3. billion deal.
Election Day in California brought the company betters news, though. Voters approved Proposition 22, letting gig-economy employers off the hook when it comes to providing benefits such as sick pay to workers.
Price Action: Uber shares traded at $48.40, with a 1.66% gain, in after-hours markets.
Image Source: Wikicommons
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