A group of investors led by SoftBank Group and Toyota Motor is in talks to invest $1 billion (roughly Rs. 70,00 crores) or more into Uber Technologies’s self-driving vehicle unit, which would value the unit at $5 billion to $10 billion.
Reports observed that the investment would provide a cash injection for Uber’s self-driving program that is costing the money-losing startup hundreds of millions of dollars without generating revenue.
It also stated that it could also help underscore Uber’s value as the ride-hailing firm prepares for a stock market debut in which its value could top $100 billion.
According to report, News of investment talks was first reported by The Wall Street Journal, which said a deal could be reached next month. SoftBank Group shares rose 4 percent in morning Tokyo trade whereas Toyota’s stock was flat.
Japan’s largest automaker Toyota injected $500 million into Uber last year to work on self-driving cars, where both companies are seen as lagging rivals like Alphabet’s self-driving unit Waymo.
Report has observed that Uber, which last year lost about $3.3 billion, is betting on a transition to self-driving cars to eliminate the need to pay drivers.
It also explained that the challenge of developing the technology is leading to previously unlikely alliances, with SoftBank and Toyota partnering up in Japan adding that SoftBank has invested $2.25 billion in General Motors Co’s self-driving unit Cruise, which has also received funds from Honda Motor.