Uber Is Selling Off Its Self-driving Car Group

Uber is selling off its self-driving car group

Uber (UBER) is selling its self-driving car division to autonomous vehicle startup Aurora. People familiar with the deal say Uber will invest $400 million in Aurora and end up with a 26% stake in the company.

Like every transportation company, Uber has been struggling during the pandemic (it cut 25% of its staff). Uber says this move will help it achieve profitability in 2021, which is good for Uber shareholders, but what does this say about the future of autonomous fleet vehicles?

Self-driving cars are just over the horizon. Does Uber have a future in a world of AVs? What about the cliché, “the biggest rental car company doesn’t own a car”? That may be the driving force (pardon the pun) behind the sale of these assets. Uber’s operating model doesn’t work (financially speaking) if they have to own the cars. I wrote about this a while back. Check out “Uber and Lyft Are Doomed.”

Shelly Palmer is Fox 5 New York's On-air Tech Expert (WNYW-TV) and the host of Fox Television's monthly show Shelly Palmer Digital Living. He also hosts United Stations Radio Network's, ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.