Uber Seeks Up to $1 Billion for Self-Driving Unit Ahead of IPO
Uber negotiates a massive funding round for its autonomous vehicle division, aiming for a valuation up to $10 billion. The deal helps boost the company's public image as it prepares for its initial public offering.
Uber seeks up to $1 billion in funding for its autonomous vehicle unit from investors like the SoftBank Vision Fund. This potential deal values the self-driving division between $5 billion and $10 billion and could close as soon as next month. The ride-hailing giant pursues this external investment to showcase the unit's growth and valuation ahead of its highly anticipated initial public offering.
The fundraising effort serves as a strategic move to repair Uber's reputation amid ongoing doubts about its self-driving progress. This push for capital follows reports that Uber burns through $20 million a month on automated vehicle research, totaling over $900 million since early 2015. An unnamed automaker reportedly joins existing backers like Toyota and SoftBank in participating in this pivotal round.
Uber is not alone in its pursuit of autonomous vehicle funding, as Alphabet's Waymo also looks to raise outside capital for the first time. Waymo aims to limit its own costs while finally revealing a new public valuation that could reach massive heights. Both companies race to secure financial backing and prove their dominance in the competitive self-driving car market.