The japanese car manufacturer Toyota is to invest $ 500 million (£387m) in Uber, and expand a partnership for the joint development of the driverless car.
The firm said this would lead to the “mass production” of autonomous vehicles, which should be implemented on Uber ride sharing network.
It is seen as a way for businesses to reach out to the rivals in the competitive car market.
The agreement, moreover, the values Uber at around $72bn, despite its mounting losses.
That is an increase of 15% from its last investment in May, but it corresponds to a previous assessment in the month of February.
According to a press release issued by the companies, self-driving technology of each company will be integrated into the purpose-built Toyota vehicles.
Uber stops self-driving test after the death
Uber is established with Waymo on self-driving
The fleet will be based on the Toyota Sienna Minivan model of a pilot trial beginning in 2021.
Shigeki Tomoyama, executive vice president of Toyota Motor Corporation, said: “This investment agreement and marks an important milestone in our transformation journey of a business mobility as well as assist in providing a safe path and secure the expansion of mobility services such as ride-sharing”.
Both Toyota and Uber are seen as the delay in the development of self-driving cars, such as enterprises, as Waymo, of the properties of the Alphabet, – steam ahead.
Uber has also rearranged its self-driving tests after a fatal accident in Tempe, Arizona, in the month of March, when a self-driving Uber SUV killed a pedestrian.
Since then, the ride-hailing giant has removed its autonomous car by the road and closed in the Arizona operations. Analysis: Dave Lee, BBC North America technology reporter, San Francisco
Uber’s troubled self-driving car efforts need outside help, and this agreement with Toyota could provide his experience. Obviously, it is a fantastic opportunity for Toyota, too.
It was reported earlier this month that Uber was the sinking of about us $ 1 million-$2m in its autonomy, of the work each single day. The results of such an effort is not something to be proud of – a fatal accident, a much more expensive lawsuit, and not a lot of self-help out of respect for the leaders in this field, Waymo.
Burden-sharing, and R&D cost, for the pleasure of the Uber investors, as it aims for its initial public offering next year.
In the meantime, shares of Toyota spiked to the report of the deal. It is not surprising. Many analysts feel that the car ownership will collapse when the self-driving, ride-sharing, the future is fully upon us – with the large companies, instead, the purchase of huge fleets of vehicles. Toyota, then, may have just secured his biggest customer.
The agreement extends an existing relationship with Toyota, and promotes Uber strategy of developing autonomous driving technology through partnerships.
The u.s. company has also teamed up with Daimler, who hopes to own and manage its own self-driving cars on the Uber network.
On Monday, Uber said it plans to focus more on its scooter and electric bike business in the future, and less car – despite the fact that it might damage the profits.
Revenue from its taxi business is on the increase, but the cost of expansion in new areas, such as bike sharing and the delivery of the food has meant a loss have grown rapidly.