Home Tech Aurora Innovation Set To Purchase Uber’s Self Driving ATG Unit

Aurora Innovation Set To Purchase Uber’s Self Driving ATG Unit

by Jay

Top Self-driving Cars Manufacturers and Startup Aurora Innovation, with top investors such as Sequoia Capital and Amazon, have reached an agreement with Uber to buy its self-driving unit Advanced Technologies Group (ATG) in a whooping $10 billion deal.

Aurora Test vehicles (AP Photo/Gene J. Puskar)

The deal which is quite a top deal had Uber CEO saying,

“Few technologies hold as much promise to improve people’s lives with safe, accessible, and environmentally friendly transportation as self-driving vehicles. For the last five years, our phenomenal team at ATG has been at the forefront of this effort—and in joining forces with Aurora, they are now in pole position to deliver on that promise even faster,”

“By adding the people and technology of Uber’s Advanced Technologies Group to the incredible group we’ve already assembled at Aurora, we’re shifting the landscape of the automated vehicle space,”

Chris Urmson, co-founder and CEO of Aurora said, also adding

“With the addition of ATG, Aurora will have an incredibly strong team and technology, a clear path to several markets, and the resources to deliver. Simply put, Aurora will be the company best positioned to deliver the self-driving products necessary to make transportation and logistics safer, more accessible, and less expensive.”

At the moment, Uber ATG was valued at $7.25 billion after a $1 billion investment from Toyota, DENSO and SoftBank’s Vision Fund in 2019.

With the closing of the deal, Uber is now handing over its equity in ATG and also reinvesting $400 million into Aurora. This move will see Uber giving the Startup a 26% stake in the combined company, according to a filing with the U.S. Securities and Exchange Commission.

It also means that shareholders and potential shareholders in Uber ATG will now become minority or sub shareholders of Aurora.

It will also see Uber CEO Dara Khosrowshahi take a board seat in Aurora.

Aurora did not just acquire ATG, but also announced what it called a strategic partnership with Uber.

It is expected that cars using Aurora’s driver will go migrate into Uber’s ride-hail network at the appointed time.

Aurora founded in 2017 focuses on self-driving technology and its high-tech skills involved in aiding self-driving cars navigate roads effectively.

So far, Aurora has attracted investment from top investors such as; Sequoia Capital, Greylock Partners and Amazon.

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