Autonomous Driving Startup Aurora Goes Public via SPAC Merger
Aurora is merging with Reinvent Technology Partners to go public, securing $2.5 billion in cash to scale its Level 4 self-driving technology. The company plans to integrate its autonomous systems into commercial trucks by late 2023.
Autonomous driving startup Aurora is going public through a SPAC merger with Reinvent Technology Partners. The deal, which is expected to close this year, provides the merged company with $2.5 billion in cash. Once the transaction is complete, Aurora trades on the Nasdaq under the ticker symbol AUR with an $11 billion valuation.
The company develops hardware and software to achieve Level 4 autonomous driving, meaning vehicles operate on the road without any human interaction. With major partners like Toyota, Uber, Volvo, and Paccar, Aurora targets a wide variety of vehicles and delivery services. The startup expects to integrate its technology into Volvo and Paccar class 8 trucks by late 2023 to generate revenue per mile.
Despite the attractive business model, commercializing Level 4 autonomous driving remains an enormous challenge that has caused other companies like Uber to abandon in-house development. Aurora CEO Chris Urmson, who previously led Google's self-driving car project, acknowledges the difficulty but says the company spends the last four years building a strong foundation. Now, the question is whether public market investors embrace Aurora's ambitious vision.