Toyota Motor Corp, DENSO and the SoftBank Vision Fund have announced that they will invest $1 billion in Uber Technologies Inc.’s Advanced Technologies Group.
The investment, in a newly formed ATG corporate entity, aims to accelerate the development and commercialization of automated ride sharing services.
Telematics News reports that under the terms, Toyota and DENSO will together invest $667 million and SoftBank Vision Fund 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 ride sharing vehicles to the Uber ride sharing network in 2021, reports Telematics News.
The companies have now announced that the further investment and expanded partnership builds upon the progress made to date, deepening the companies’ collaboration in designing and developing next-generation autonomous vehicle hardware.
It will also prepare the companies and industry for mass production and commercialization of automated ride sharing 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, says Telematics News.