Toyota will invest $500 million in Uber in deal to put self-driving cars on the road

acastro_180524_1777_uber_0003.0Source: The Verge

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Toyota will invest $500 million in Uber in a deal that values the ride-hail giant at $72 billion, according to The Wall Street JournalAs part of the agreement, the two companies will work jointly on developing self-driving cars. That’s a slightly higher valuation for Uber than what it got last December when Japan’s Softbank acquired a 20 percent stake in the ride-hailing business.

The news comes as Uber has been scaling back its in-house self-driving car project in the wake of a fatal crash last March in Tempe, Arizona. A self-driving Uber vehicle struck and killed a 49-year-old woman as she was crossing the street. Spokespersons for Uber and Toyota did not immediately respond to a request for comment.

This isn’t the first time Toyota has invested in Uber. Back in 2016, the Japanese automaker announced it was forming a “strategic partnership” with the San Francisco-based company, in which Uber drivers can lease their vehicles from Toyota and cover their payments through earnings generated as Uber drivers. The deal also included an investment of an undisclosed amount.

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