Uber Gets $500 Million Investment From Toyota
The world’s biggest ride-hailing company is getting a massive investment from the world’s largest automaker. Japanese giant Toyota has announced it will be investing $500 million in Uber in a strategic move that intends to bring the two companies closer together in the development of self-driving cars.
Both Toyota and Uber already have self-driving car programs, and the move could create a market for the companies to flood the streets with autonomous vehicles. The investment was made at a valuation of Uber at $72 billion, and Toyota says the partnership will be “critical in realizing self-driving technology at scale.”
The companies anticipate that the new vehicles produced will be owned and operated by third party autonomous fleet operators, so neither Toyota or Uber will be responsible for managing the fleet of self-driving cars.
“The deal is the first of its kind for Uber, and signals our commitment to bringing world-class technologies to the Uber network,” Uber CEO Dara Khosrowshahi said in a statement. “Our goal is to deploy the world’s safest self-driving cars on the Uber network, and this agreement is another significant step towards making that a reality.”
The investment is welcome news for Uber’s self-driving car program, which has hit a few bumps recently, including a pedestrian death in Arizona last March and a lawsuit from Google. It shutdown its operations in Arizona after a self-driving car struck and killed a person — the company only recently reentered the Pittsburgh market with its self-driving cars but have yet to put them back in autonomous mode.
As part of the partnership, Uber will use Toyota Sienna Minivans outfitted with Uber and Toyota’s self-driving technology. Uber will begin testing the vehicles on its ride-hailing network in 2021.
Toyota and Uber have worked together in the past — in January they revealed an autonomous vehicle concept dubbed e-Palette, and in 2016 Toyota invested in the ride-hailing firm to allow drivers to lease Toyota vehicles and have earnings from their rides automatically cover car payments.
Waymo, Google’s self-driving car project, has forged similar partnerships with Jaguar and Chrysler to build and develop self-driving cars. Lyft joined with General Motors, Ford and Google in pursuit of its own autonomous ride technology.
Featured image by Justin Sullivan / Getty Images.
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,650
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.