Uber may be close to waving the white flag on its autonomous driving ambitions. The ride-hail giant is reportedly in talks to sell its Advance Technologies Group — which has been beset by infighting
Uber may be close to waving the white flag on its autonomous driving ambitions.
The ride-hail giant is reportedly in talks to sell its Advance Technologies Group — which has been beset by infighting and setbacks — to self-driving car startup Aurora.
The talks have been ongoing since October, TechCrunch reports, though there is no certainty a deal will be reached. Uber is also considering taking a stake in the new company if Aurora takes over ATG.
Just last year, Uber’s ATG had raised $1 billion at a $7.25 billion valuation. But the business arm has struggled to make meaningful advances, and faces intense competition from Alphabet-owned Waymo and Apple’s autonomous vehicle efforts.
Uber has of late been exploring options for ATG, a heavy cash burn machine, including seeking more outside investment as the pandemic has forced CEO Dara Khosrowshahi to focus on core businesses including ride-hailing and food delivery.
ATG is still recovering from 2018 accident which saw a pedestrian killed by a self-driving Uber in Arizona, with some workers believing the division’s renewed focus on safety is slowing down progress, according to a September report.
Aurora is among dozens of startups, automakers and large technology companies working on self-driving car systems, eager to capitalize on a sea change in the transportation industry.
The startup, which is already testing its vehicles in the San Francisco Bay Area and Pittsburgh, in July said it was expanding testing and development of its vehicles to Dallas-Fort Worth Area in Texas.
Shares of Uber were up 3.7 percent Monday morning, at $49.38.
Uber and Aurora declined to comment.
With Post wires.