Uber is selling its driverless car subsidiary to start-up Aurora Technologies, abandoning a unit that Uber’s founder once hailed as critical to the future of the firm.
Aurora, founded in 2017, said the deal will help it “accelerate” its mission to make self-driving cars a reality.
Uber will invest $400m in the Amazon-backed company, giving it a 26% stake.
Its chief executive Dara Khosrowshahi will also serve on Aurora’s board, following closure of the deal.
Despite the sale of its driverless car subsidiary known as Advanced Technologies Group, Uber said it remained interested in the sector, with plans to collaborate with Aurora when it comes to launching driverless cars on its network.
“Few technologies hold as much promise to improve people’s lives with safe, accessible, and environmentally friendly transportation as self-driving vehicles,” Mr Khosrowshahi said.
“For the last five years, our phenomenal team … has been at the forefront of this effort – and in joining forces with Aurora, they are now in pole position to deliver on that promise even faster.”